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Business |
CPL doubles 6-month profit to K6.16 million
By BAEAU TAI
NET profit before tax for CPL Ltd,
trading as City Pharmacy and Stop n Shop doubled last year to
K6.164 million from the previous year’s figure of K2.421 million.
The six-month net profit before tax from July to December 2006 was
K4.210 million following a first half of K1.954 million.
The slow start to the year was caused by the initial integration
of the inventory and business systems from the Stop ‘n’ Shop
supermarkets acquired in November 2005.
The company said in a preliminary final report for last year
submitted to the Port Moresby Stock Exchange yesterday that
revenue more than doubled from K57.051 million in 2005 to K153
million in 2006.
Depreciation and amortisation were up from K777,085 in 2005 to
K2,261,682 last year.
The net-profit related revenue only decreased from 4.2% in 2005 to
4% in 2006.
“This is a pleasing result as the acquired supermarket business is
traditionally at a lower margin when compared to retail pharmacy,”
CPL chairman Alan Jarvis said.
He said contributing factors to the sustained profitability were
the opening of a central bakery serving all outlets, the
refurbishment of certain supermarkets and the expansion of
pharmacy outlets.
The damage and loss caused by the recent fire at the Erima
Supermarket was fully insured including a business “interruption
element”.
“The company is actively seeking new business locations, Mr Jarvis
said.
“The lease has a further two and half years to run and we are
currently negotiating with the owners to return to the location
upon rebuilding,” Mr Jarvis said.
The group has programmed the completion of the refurbishment and
remerchandising of existing retail outlets this year.
“The company is actively seeking new business locations. The
refinement of the inventory and logistical systems is a continuing
task,” Mr Jarvis said.
A strategic business plan to drive the business forward with
transparency and good corporate governance is the final stage of
preparation.
It is anticipated to have this in place during the first half of
this year.
 
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