Rainforest delivered resilient topline results with US$54.1 million in revenue and remained operating cash flow positive for the second consecutive year. The Group’s core Parenting & Kids portfolio demonstrated strong momentum, with 25% and 19% year-on-year growth in net revenue and gross profit respectively, driven by strong consumer demand, expanded multichannel distribution, and a steady cadence of new product launches. New products, including the Babbleroo Vegan Leather Diaper Bag Backpack, contributed US$5.3 million to net revenue in 2024, underscoring innovation as a key growth engine at Rainforest.
Rainforest also improved operating efficiency, reducing administrative expenses by over 16% (US$8.1 million in FY2024 vs. US$9.7 million in FY2023), while expanding product innovation efforts. Additionally, the Group reduced its loan exposure by US$16 million in FY2024, reflecting disciplined cash flow management and continued efforts to strengthen the balance sheet. This reduction enhances financial flexibility and positions the Group for more sustainable capital deployment going forward.
Brand building investments
As part of its longer-term transformation, Rainforest concluded the year with a strategic pivot toward multichannel, organic brand growth of its core Parenting brands. This includes exploring divestments of non-core brands and product lines while increasing investments in Parenting brands. The focused approach is intended to deliver clear category leadership and build brand equity.
“The landscape of cross-border brand growth is rapidly evolving and we are taking steps to become a more resilient business in the longer term, with brand-building in focus and aggregation less of a growth driver,” said Chai Jia Jih, CEO of Rainforest. “We are also bringing on board both talent and partners to accelerate brand-building, with Sophie Jokelson joining us as Head of Brand and Creative, and Shift Partners engaged as our brand strategy partner.”
Looking ahead, Rainforest will accelerate its growth strategy by investing in deeper consumer insights, strengthening brand equity, and scaling product innovation. The Group will also expand its direct-to-consumer and wholesale channels. These initiatives reflect the Group’s commitment to building enduring, category-leading brands with sustainable growth potential.
