Boxed mattress brand eve Sleep has reported a growth in full year sales as well as narrowing losses.
According to its latest trading update for the year ended 31 December 2020, total sales rose 6% to £25.2m (2019: £23.8m), driven by 18% growth in H2.
eve said it delivered record trading over the Black Friday period and the first week of the Boxing day sales, while also extending the sleep wellness ranges with new bedframes, sleep gifts and bedding, and entering into the sleep gifts market with the launch of ‘well slept’ range online and in partnership with Boots UK, seeing strong success.
The company added that EBITDA losses were cut by 81% to £2m (2019: EBITDA loss of £10.7m).
Looking ahead, eve said trading in the first few weeks of the year has started well and is following the same positive trends seen in recent months.
The availability of raw materials and component supply remains an industry issue and a potential limiting factor on near term growth. At this time the Company has not experienced any material cost/duty increases as a direct result of Brexit, though there has been some slowing of the pace of deliveries to Ireland and Northern Ireland resulting from courier related issues. eve will continue to closely monitor the situation but does not expect any material full year impact at this time.
2021 will be the year eve transitions from the rebuild strategy, which commenced in the second half of 2018, to focus on growth opportunities in the UK and beyond in order to build a stronger, broader and larger, profitable business.
Expansion will be managed in a controlled and disciplined manner, with the initial focus for investment on the Company’s existing French market. Having already completed the restructuring of the French business and its cost structures, the Company is now ready to invest in both its B2C and retail sales channels, adopting many of the same strategies that have been deployed successfully to scale the UK business, including its first new TV campaign in three years. The investment required to scale the French business will come from the Company’s existing cash resources.
Cheryl Calverley, CEO of eve Sleep commented: “Our business reset is largely complete and our growth has accelerated more quickly than we initially anticipated as a result of the shift to online and the current strength of the homewares market. We have exceeded our financial expectations for 2020, which were raised twice during the year, extended our product ranges, opened new sales channels, increased brand awareness, presence and recognition, with the winning of the Which? awards, and improved the strength and resilience of our technology, logistics and operations platforms. This is entirely down to the tireless dedication, creativity and commitment of our team, who moved seamlessly to home working from March, without the need to furlough staff or make redundancies. I take my hat off to each and every one of them.
“In 2021 we will invest in growth initiatives across our business, particularly in France, where we see good opportunities to scale, whilst continuing to build on the current UK momentum. We are confident in the near-term outlook and although there is a high level of uncertainty as to the macro-economic backdrop and spending habits of consumers in the second half of the year, we have entered the new financial period with a much improved proposition, a stronger Balance Sheet and a more resilient business.”