// Eve Sleep slashes underlying EBITDA losses by 50%
// Half-year sales fell 0.9% in the UK and Ireland but plunged 29% in France
// Half-year group revenue down by 8%
Eve Sleep has managed to slash its underlying operating losses despite a “backdrop of substantial retail headwinds” prompting another decline in sales.
According to a pre-close trading update for the half-year period ending June 30, the online mattress retailer said “good progress” has been made in reducing its underlying EBITDA loss by 50 per cent – coming in at £5.9 million compared to a loss of £11.9 million in the first half last year.
Eve Sleep said this was driven by the refocus on just three markets, greater marketing efficiency and a reduction in overheads.
Meanwhile, its UK and Ireland revenues for the period were broadly flat, slipping 0.9 per cent year-on-year, but revenues in its French market plunged 29 per cent year-on-year.
These figures mean Eve Sleep’s half-year group underlying revenue decreased by eight per cent year-on-year to £12.9 million.
Eve Sleep said it expected revenue growth to return in the second half, thanks to the launch of new marketing campaigns, three new retail partnerships and further benefits of a turnaround strategy coming through.
It also remained on track to deliver a full year EBITDA loss reduction in line with expectations as it continues to focus on cost management, but full year revenue is expected to be slightly below previous guidance due to the softer than expected market conditions in the first half.
“I am pleased with the financial and strategic progress made in [the first half], against a backdrop of substantial retail headwinds and the current competitive nature of the category,” Eve Sleep chief executive James Sturrock said.
“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 and Ireland 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.”