D2C brand eve Sleep has issued its audited results for the year ended 31st December 2020, revealing results ahead of expectations and a strong start to the new year.
Revenue increased to £25.2m, with YoY growth in the second half of +19% – despite the business cutting its marketing expenditure significantly. Gross profit grew by +14% to £14.5m.
In all, the company recorded a net loss of £2m (following a loss of £12m in 2019), and is now cash flow neutral for the first time.
Revenues in the first two months of this year are up +16%, representing an acceleration from Q4 2020, when growth was held back by supply constraints, says eve.
Cheryl Calverley, CEO, comments: “eve’s rebuild strategy is essentially complete, six months ahead of plan. We move now to accelerate our business, with a mind to leveraging our strong brand, efficient marketing, high-performing products and excellent customer service to allow us to diversify across markets, channels and categories.
"But we do so carefully. Successful ecommerce businesses win through balancing growth, with customer experience and business resilience, and we will do the same. We seek sustainable, profitable growth, and will avoid growth at any cost, and certainly to the detriment of customer experience or business resilience. We’re excited about the opportunities the next few years bring, and we now have a business ready to grasp those opportunities.”
The period saw eve's successful entry into the sleep gifts market, while the business lifted UK brand awareness and group conversion rates.
Eve also re-platformed its UK and Ireland websites to Shopify, upgraded its supply chains to localise manufacturing ahead of Brexit, and restructured its warehousing and distribution to allow shipments to customers to be consolidated into one delivery, resulting in lower costs and a better customer experience.