D2C brand eve Sleep has reported its third consecutive year of revenue growth in the UK and Ireland, increasing +22% Yo2Y.
In its audited results for the year ended 31st December 2021, eve also reported its second consecutive year of group revenue growth (including operations in France), up +11% Yo2Y.
Group EBITDA losses increased to £3m due to higher marketing investment in France. eve enjoyed an improved performance in H2, with EBITDA losses of just £1.1m and a cash outflow of £0.7m.
It says the closing net cash balance of £4.5m is sufficient to execute its business plan for 2022.
During the period, eve extended its range to operate in six categories. Premium ranges account for over 40% of its revenue, and eve is making continued expansion into gifting and wellness.
eve launched a new retail partnership with DFS, which went live on the retailer's website in early March, while an extension into the showroom estate later is planned for later this year.
CEO Cheryl Calverley says: “Delivering a third year of growth in revenues and marketing contribution in our core UK&I business, notwithstanding the many external challenges faced during the period, demonstrates clearly the sustainability of our recovery and the success of the rebuild strategy. We have managed and mitigated inflationary pressures and supply chain disruption throughout 2021, whilst the Q4 issue of Covid-related labour supply shortages primarily in our delivery proposition has now abated. There is no denying the challenges we will face in 2022 but the restructured business is in good shape, our offering greatly enhanced and our team as strong as ever.
"Our push into the sleep wellness space will continue at pace in 2022, including the launch of our first digital services. Sleep wellness is a large, fragmented and growing market, where we have a substantial lead over our more mattress focused competitors. There is a real opportunity to create the world’s first digital sleep wellness retailer.”
Trading in Q1 last year was eve’s strongest quarter, as a result of extensive lockdown restrictions, with comparatives normalising from the start of May. In this context, trading for January and February has been softer than the prior period last year, but +6% up on 2020. While there are heightened geopolitical uncertainties and the path for consumer spending is currently unclear for the year, eve says its targets on growth and UK&I profitability remain.