Management's udpate said trading in the UK has been stronger than expected, while international revenues have grown 180%.
Companies: Eve Sleep
Mattress company Eve Sleep (LON: EVE) has today released a positive trading update ahead of its first financial year-end as a listed company.
Commenting on the Group's trading in the first 11 months of the current financial year, Management said:
"Group revenues for the first 11 months of trading are expected to have grown 130% year-on-year. Trading in the UK has been stronger than expected and is anticipated to be up over 105% year-on-year over the same period, while international revenues are expected to increase more than 180% year-on-year."
The reassuring numbers have pleased the market today as shares jumped 10% to 97p in early trading.
The Group, who listed on London's junior market in May '17, have invested heavily in marketing its mattress and sleep products and have previously said this is central to the Company's growth strategy.
Marketing costs as a percentage of revenue, "a key metric for eve to achieve profitability", has improved from 64% in H1 and are "on track" to be 35% of Revenues for November.
Shares in EVE spiked in the days following the announcement its products would be stocked in German department store chain Karstadt which Management today said is "progressing to plan".
Looking to the future, Group CEO Jas Bagniewski commented:
"We continue to be in a period of acceleration with strong momentum across our 15 territories. eve is making good progress towards its objective of achieving UK profitability in Q4 2018, demonstrated by the UK business now anticipated to report a maiden profit after marketing costs in Q4 this year, a significant improvement on the first half of the year. "
EVE began trading in 2015 in which it reported Revenues of £2.6m and a Net Loss of £1.5m. Before today's update consensus forecast the Group would report a Net Loss of £13m this financial year and Revenues of £27m. This represents Revenue growth of over 900% in just three years.