Australian specialty retailer Baby Bunting Group reported a statutory net profit after tax of $1.7 million for FY24, down from $9.9 million in FY23.
Pro Forma NPAT stood at $3.7 million, within the previously indicated range of $2 million to $4 million.
The company's refreshed strategy, unveiled in June, is driving positive momentum.
"While it is still early days, it is pleasing to see the implementation of the strategic growth initiatives that we announced as part of our Investor Day in June starting to deliver positive momentum in our trading and financial performance," said Baby Bunting CEO Mark Teperson.
Key improvements include a 3.5% growth in total sales and a 2.0% rise in comparable store sales for the first seven weeks of FY25.
The gross profit margin in July improved by 180 basis points compared to the previous corresponding period, driven by a simplified pricing structure.
Operational metrics show enhanced efficiency, with inventory productivity yielding a $7 million reduction in comparable store inventory year-on-year.
The group's operating cash conversion ratio improved to 86% in FY24 from 81.7% in FY23, positioning Baby Bunting to fully fund its FY25 capital expenditure of $10 million to $13 million.
The company closed its Camperdown store in Sydney. Despite the measures, the company reported a gross profit margin decline to 36.8%, down from 37.4% in FY23.
Cash flow from operations amounted to $40.1 million, down from $43.0 million in the previous year.
Looking ahead, Baby Bunting expects FY25 pro forma NPAT to range between $9.5 million and $12.5 million, supported by projected comparable store sales growth of up to 3% and a full-year gross profit margin target of 40%.