City Pharma posts K5mil profit
CITY Pharmacy Ltd realised a profit of more than K5 million last yea, up more than 17% from the previous year’s net.
In its announcement to the Port Moresby Stock Exchange yesterday, the company said it posted a net profit after tax of K5,087,046 in 2007, or 17.47% better than the net of K4,330,935 in 2006.
“Group turnover was K181,998,720, an increase of 18.96% from 2006,” Alan Jarvis, chairman of City Pharmacy Group, said.
The net profit to turnover percentage was only 2.80%, a slight increase from 2.83% in 2006, reflecting higher operating costs and tighter margins.
“We expect this margin to increase this year,” Mr Jarvis said.
He said dividend after existing share split into three of 7.14 toea per share has been proposed.
Mr Jarvis outlined other significant events in 2007 within the company:
1. Bid to acquire the Stop and Shop at North Waigani and Gerehu for about K8.55 million;
2. The purchase and refurbishment of a City Pharmacy premises in Mt Hagen for about K2.49 million; and
3. The purchase and refurbishment of a distribution and head office at Gerehu.
CPL, in a joint ventrue with Post PNG, will introduce health services to a new customer base in wh ich they will operate joint City Pharmacy and Post retail outlets throughout PNG.
“The initial pilot store at Bialla has opened and is exceeding budget turnover,” Mr Jarvis said.
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