Eve Sleep grows full year revenue following strong performance in UK and Ireland
Mattress brand Eve Sleep has seen its 2021 group revenue rise by 5% year-on-year to £26.6 million.
On a two-year basis, revenue was up 11% despite a 40% reduction in marketing spend over the same period.
The uplift was led by the retailer’s performance in its UK and Ireland market which achieved its third consecutive year of improvement in 2021. UK and Ireland revenues rose by 10% year-on-year and by 22% on two years ago prior to the pandemic. Within this, direct-to-consumer revenues were up 21% year-on-year and by 49% on two-year comparatives.
While the company’s statutory pre-tax loss came in at £3.4 million compared to £2.4 million in the prior year, its UK and Ireland business generated a positive net contribution, defined as profit before overhead costs, for the second consecutive year. It posted a profit of £3.7 million in 2021 which marked an increase of 5% year-on-year.
Meanwhile, revenues at Eve Sleep’s French business declined by 13% in the year to £4 million.
Cheryl Calverley, chief executive of Eve Sleep, said: “Delivering a third year of growth in revenues and marketing contribution in our core UK & I business, notwithstanding the many external challenges faced during the period, demonstrates clearly the sustainability of our recovery and the success of the rebuild strategy.
“We have managed and mitigated inflationary pressures and supply chain disruption throughout 2021, whilst the Q4 issue of Covid related labour supply shortages primarily in our delivery proposition has now abated. There is no denying the challenges we will face in 2022 but the restructured business is in good shape, our offering greatly enhanced and our team as strong as ever.”
Giving an update on its performance in January and February, Eve Sleep said trading in the months was softer than in its strongest ever quarter last year when the UK was subject to lockdown restrictions, but was up 6% on the same time in 2020.
Looking ahead, the company said: “Whilst there are heightened geopolitical uncertainties and the path for consumer spending is currently unclear for the year, our targets on growth and UK & I profitability remain.”