Toy wholesaler Funtastic has told long-suffering shareholders, including Gerry Harvey, the worst is over and it's on the path to profitability after reporting its fourth consecutive annual loss.

Funtastic, which owns brands such as Pillow Pets, Chill Factor and Floaties, lost $33.4 million in the 12 months ending July, up from a loss of $23.9 million in 2016, after booking $17 million in goodwill impairments.