Eve Sleep sees first positive cash flow
Mattress in a box brand Eve Sleep has seen its first positive cash flow in the past six months, but it is yet to make a profit.
The company saw net cash rise by £1.1m to £9.1m in the six months to 30 June, although this was helped by £500,000 of deferred taxes.
EBITDA losses for the half were cut by 80% to £1.2m.
‘Trading since the start of April has continued to build through the period, following some weakness in the latter part of March during the initial stages of lockdown. May and June trading was ahead of the Board’s expectations and this momentum has continued into July, buoyed by a strong homewares market, effective and efficient marketing and Eve’s online focused proposition. The benefits of Eve’s three pillar rebuild strategy are becoming increasingly evident, with strong brand awareness and the wider product suite drawing new customers to the brand. Sales of premium mattresses and bedframes continue to be strong, supported by wider sales across toppers, pillows and duvets. There has also been a reduction in the breadth of the competitor landscape,’ it says.
‘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. 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. These achievements have only been made possible by our experienced and highly capable team who have shown remarkable resilience, engagement and commitment throughout,’ says Cheryl Calverley, Eve Sleep ceo.
‘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. Eve will continue to focus on driving value for our shareholders and building a sustainably profitable business with strong growth potential.’