eve Sleep, the direct to consumer sleep wellness brand operating in the UK, Ireland (together the ‘UK&I’) and France, has announced a fall in sales as losses widened in its latest update for the year ended 31 December 2019.
eve said that group revenues in core markets stood at £23.8m, down from £29.3m in 2018, while there was a 43% year-on-year reduction in full year EBITDA losses (£10.8m), which was ahead of expectations.
The Company said it has ‘continued to progress its rebuild strategy, prioritising long term profitability and cash generation over short-term sales growth and market share gains. Notwithstanding the year on year decline in revenue, the Company has delivered a reduction in EBITDA losses ahead of its plans’.
eve added that it had signed and launched retail partnerships with Argos, Homebase and Dunelm, as well as landing a new brand campaign featuring the eve sloth – increasing unprompted awareness by 50%.
In Q4 2019 the Company made significant further cost reductions, which is flowing through to an improving cash-burn and bottom line performance compared to Q1-Q3 2019. eve plans to publish its full year audited results on 24 March 2020.
James Sturrock, CEO of eve Sleep commented: “We are delivering on our priorities of reducing losses and stemming cash burn as we prioritise profitability over sales growth at any cost. We continue to create award winning products to improve customer’s sleep wellness, as evidenced by our latest Which? Best Buy award for our premium hybrid mattress, while removing unprofitable sales and marketing.
We are well placed to make further significant progress in 2020, with a differentiated brand position, a broader product range than peers and ongoing improvements to the customer experience, supported by a lower cost base, a substantial cash balance and no debt. “