Each profile behaves like a browser on a different computer: its own screen size, fonts, time zone and storage. Agencies and sellers use them to run several client or shop accounts from one machine without the accounts being linked.
The profile covers the browser. The IP address comes from the proxy you attach to it, and the two have to agree: a profile set to a German time zone should exit from a German address. The usual setup is one profile, one sticky session, kept for that profile only.
Read next: Antidetect browsers and how to set a proxy in each