Eve Sleep losses widen amid ‘appalling’ market conditions
The company was forced to consolidate its products to focus on its most profitable lines, and has cut its annual overheads by £2.5m
Eve Sleep, a direct-to-consumer sleep wellness brand, has reported EBITDA losses of £4.2m for the first half of 2022, compared with a loss of £1.9m for the same period the year prior.
The report saw revenues down 16% to £11.6m for the six months ended 30 June 2022, compared with £13.9m H1 2021.
It comes as the company was forced to consolidate its products to focus on its most profitable lines, while cutting annual overheads by £2.5m including “substantial salary reductions” for the non-executive board and board level directors and a restructuring of the team and cost savings across all overheads in the business.
It noted a “very strong start to the year”, with January ahead of plan, citing that a combination of the war in Ukraine, falling consumer confidence, and increasing inflation were affecting the homewares market significantly.
Cheryl Calverley, CEO of Eve Sleep, said: “We are doing everything possible to manage the business through these incredibly difficult times, whilst speaking with potential investors and strategic partners to secure fresh investment aiming to put eve on a more secure and sustainable footing. The business has been streamlined dramatically, with cash preservation our absolute focus.
“Truly unprecedentedly appalling market conditions have stopped 2022 being the transformative year that it was intended to be despite a very bright start and our focus is now on navigating the current storm through to calmer waters with a much more efficient business.”
