Toy and confectionery business, Funtastic, has lifted its full year profit by 34 per cent, though a weak retail environment continues to weigh on the company.

Funtastic made a net profit of $13.96 million in the year to July 31, up 17 per cent on the previous year.

The profit included a $3.3 million gain made from a renegotiation of the amount it paid for a license to manufacture and distribute certain Lego stationery products.

Excluding that one-off gain, earnings before interest, tax, depreciation and amortisation (EBITDA) were $20.7 million, up slightly from $20.2 million in the previous year.

“Given the difficult retail conditions, it is pleasing to report improved earnings, despite some sales declines domestically,” chief executive Stewart Downs said in a statement.

The company said it does not expect any change to consumer sentiment in the short term, but said recent changes to the business, including its ownership of brands, would make it a more stable and predictable business.

Funtastic declared a fully franked final dividend of half a cent per share.

AAP