Eve Sleep reports increased losses
Eve Sleep has reported having a “tough” year in 2018 which resulted in the company making a statutory pre-tax loss of £20.3 million.
In the 12 months to 31 December, revenue increased by 25% to £34.8 million but group underlying EBITDA losses rose to £19.2 million from £15.1 million in the previous year.
With the performance falling short of its board’s expectations, Eve Sleep has carried out a full review under the leadership of new chief executive James Sturrock. This has led to the implementation of a “rebuild strategy” that includes setting out a differentiated brand positioning, expanding the product range, and developing a “lower friction” customer experience.
Sturrock said: “We have made some good early progress with our rebuild strategy and have secured the funds to execute on it. As part of our pathway to profitability plan, we have taken decisive action on our cost base, including a significant reduction in administrative expenses compared to 2018 along with a refocused and reduced marketing investment strategy removing inefficient activity. When combined with the expected benefits of our rebuild strategy, we anticipate a significant reduction in losses in 2019.”
