// Eve Sleep reduces half-year underlying EBITDA by around 80% to approximately £1.2m
// Although sales were down for the first half, in the Q2 it surged 25%
Eve Sleep has said its half-year losses have improved year-on-year, and although sales fell in that same period it was still above expectations.
The online mattress retailer said it reduced its underlying EBITDA by around 80 per cent to approximately £1.2 million during the six month period ending June 30.
Meanwhile, although sales was down to £12.2 million from £12.9 million in the same half-year period last year, there was 25 per cent year-on-year surge in the second quarter.
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Eve Sleep said the narrowing of its losses as well as its revenue were both ahead of board expectations.
It added that a year-on-year reduction in revenues had been budgeted for as part of plans to prioritise profitable sales over chasing top-line growth.
Eve Sleep said trading since the start of April has continued to build, with May and June trading being ahead of expectations and the momentum continuing into July.
“Trading through this complex period has been robust and ahead of our previous expectations, and for the first time we have generated positive cash flow over a sustained period,” Eve Sleep chief executive Cheryl Calverley said.
“Our goal of profitability draws ever closer as we continue to deliver our rebuild strategy, underpinned by growth in customer numbers, an increasing contribution from wider sleep categories, and improved marketing efficiency.”
Due to ongoing economic uncertainty as a result of the coronavirus pandemic, Eve Sleep left its full year forecast unchanged.
However, it said it was increasingly confident of the out-turn for 2020.
“We are well placed to benefit from the accelerated shift to online ordering and the increase in spend on homewares as consumers increase investment in their homes,” Calverley said.
“Eve will continue to focus on driving value for our shareholders and building a sustainably profitable business with strong growth potential.”