By GYNNIE KERO
THE City Pharmacy Group says 2016 started off with similar challenges faced in 2015 – a weakening level of economic activity and soft commodity prices.
The group’s first half-year report recorded a revenue of K260 million (K218 million in 2015) but it included K60 million from Hardware Haus which was not included in last year’s figures.
The parent company’s revenues were down 9 per cent (K184 million compared to K202 million).
This was not matched by cost reductions in the first half. Thus the net loss before tax for the group was K16k compared to a profit of K3.04 million last year.
Chairman Mahesh Patel said it was mainly impacted by:
- A reversal of K1.5m insurance claim for Business Interruption, which came about in the last week;
- a reduced profit of around K1.3 million from our tenders and wholesale business predominantly from the public sector; and,
- This was further compounded by one-off expenses of around K500,000 for additional security and logistics expenses for our new stores at Koki and Harbour City;
“We lost revenue of almost K2 million (gross profit of almost K500,000) in June due to store closures and disruptions during the student unrest around the nation,” Patel said.
Revenues for Stop and Shop retail outlets were lower by 13 per cent compared to last year, primarily due to the impact of the Waigani Central store.