Pumpkin Patch turned to a profit in 2013 after posting a loss the year earlier when it reorganised its business and is not paying a dividend while it repays debt.
The children’s clothing retailer reported a net profit of $NZ5.1 million ($A4.56 million) in the year ended July 31, following a loss of $NZ27.5 million a year earlier.
The profit before reorganisation costs of $NZ8.5 million was down from $NZ10.1 million a year earlier but was within a $NZ7.5 million to $NZ9 million range forecast by the company.
Sales fell four per cent to $NZ288.7 million.
The retailer is not paying a dividend as it focuses on reducing debt. It will consider paying a dividend at the end of its first half.
“Although the company faced challenging trading conditions across its major markets during the year, it continued to make significant progress in repositioning itself so it can successfully execute its long term growth strategies in local and international markets,” CEO, Di Humphries said.
“Trading conditions across Australia, New Zealand and major international markets are expected to remain challenging in the near term,” she said.
The full benefits of the business reorganisation will occur in 2014.
Net bank debt in 2013 fell 12 per cent to $NZ48.3 million, while inventory fell 3.9 per cent to $NZ59 million.
Shares in Pumpkin Patch rose one per cent to $NZ1.01, having declined 25 per cent so far this year.
BusinessDesk
