By Delly Waigeno – EM TV News, Port Moresby
2015 was a tough year for Papua New Guinea’s largest retailing network, City Pharmacy Group (CPL).
Revenue growth started well for the company in the first quarter but was stifled in the second half due to a fire at Waigani Central.
The group’s net profit after tax was K6.56 million, a drop from the previous year’s net profit of K6.91 million.
CPL Group’s financial figures for the 2015 year were released recently, citing highlights as well as challenges in revenue growth.
In his statement, CPL Group Chairman, Mahesh Patel, said revenue growth was affected when a part of Waigani Central went up in flames.
As Waigani Central was the group’s largest volume outlet, the devastation affected their new growth plans and had a negative impact on profitability.
Net profit after tax for the parent company was K7.35 million, a drop compared to K7.55 million in 2014.
On a brighter note, group net assets increased from K113.25 million to K116.13 million, due to consolidation of the Hardware Haus business. And, sales increased from K401.11 million to K462.08 million.
Highlights included the full acquisition of the Hardware Haus business as a 100 per cent subsidiary of CPL. Jack’s of PNG opened two outlets and the Airport Duty Free outlet was also opened.
Patel is confident of CPL’s turnaround in 2016. Already their new
Stop N Shop outlet at Koki opened recently, while the one at Harbour City is scheduled to be open soon.
CPL Group has now established seven retail brands including City Pharmacy, Stop N Shop, Hardware Haus, Boncafe, Paradise Cinema, Jacks of PNG and Prouds Duty Free.