In a trading update for the six months ended 30th June 2019, D2C mattress supplier eve Sleep has revealed halved losses and new retailer partnerships.
eve's focus this year has been on reducing EBITDA losses and improving cash management, and the supplier says it has made good progress in both cases. Underlying EBITDA losses were reduced by -50% YoY to £5.9m, driven by a refocus on fewer markets, greater marketing efficiency and a reduction in overheads. Net cash at the end of the period was £12.5m.
The group expects revenue growth to be weighted towards H2 – UK&I revenues for H1 were broadly flat at -0.9% below last year. Group underlying revenue decreased by -8% YoY to £12.9m. H2 will see new marketing campaigns, three new retail partnerships – with Argos, Dunelm and Homebase, to sell eve products online – and the further benefits of eve's rebuild strategy coming through.
The period also saw greater brand differentiation, the launch of a new UK TV advertising campaign, the development of new products and refined sales journeys.
CEO James Sturrock comments: "I am pleased with the financial and strategic progress made in H1, against a backdrop of substantial retail headwinds and the current competitive nature of the category. We have a strong new team in place, and there are early signs that the rebuild strategy is driving meaningful improvements in our key metrics in both the UK&I and France. Our focus on reducing losses, whilst creating a differentiated proposition as a sleep wellness brand, will underpin the business and lay the path to long-term profitability.
"We have some exciting plans and partnerships launching and I look forward to seeing more progress against our strategy in some of the biggest peak trading periods for the business in the second half of the year."
eve is on course to meet full year loss reduction expectations, despite slightly lower revenue growth.