CPL posts K10m profit

By GYNNIE KERO
HOMEGROWN company CPL Group has posted a K10.11 million profit before tax for the first-half of this year, a 37% increase from K7.37 million for the first six months of last year, the company announced yesterday.
Total revenue for PNG’s largest retailing network for the first-half of the year rose by 15% to K168.38 million, as compared to K147.04 million last year.
Chairman Mahesh Patel said CPL’s continued focus on customers, through investment in price, range, merchandise and quality would continue to contribute to the sales growth.
“We expect this positive trend to continue and finish this financial year strongly,” he said.
“There will be a continual challenge to contain the exorbitant rentals in the marketplace and control the rising electricity security and labour costs.”
Patel said the better-than-expected performance was brought about by a mix of expanded capacity of opening an additional new City Pharmacy store in Kokopo, two more Boncafe outlets in Port Moresby  as well as the new business Paradise Cinema, which opened at the start of the year.  
“In addition, Hardware Haus has shown an improved robust sales performance under new management team.
“A tighter grip on ope­rating expenses likewise contributed to the company’s rise in profits.
“One of the highlights of CPL’s business this year is the acquisition of a pharmacy wholesale business in Sydney, Australia, which will leverage our sourcing and international procurement and has great growth potential.
“CPL’s noteworthy performance in first-half of the year, which was achieved in spite of tempered economic progress, clearly shows that the business formula the company has adopted is resilient and built for sustainable growth,” Patel said.
“Now that there is better optimism on the country’s prospects, the company is even more eager to pursue its growth and expansion plans, as a fitting tribute to all their stakeholders.
“As proof, the new Stop N Shop Central Waigani development has begun and is progressing well. 
“The produce depot project in Steamships Compound in Waigani has also started and once completed, farmers will find it easy to sell their product in a centralised buying depot.
“CPL’s focus in rural farming is continuing with associations set up with the Rigo’s women group and a fair pricing and organic certified project at Afore in the Oro (Northern) province, impacting their 2,500 farmers in the province.
“The company is also continuing to secure further supply chain improvement and technological renovations to improve warehouse throughput.”
The CPL Group has a combined retail operations of 56 stores nationwide and employs more than  2,000 staff, of whom 95% are Papua New Guineans.
Its retail network spans health and beauty chains, grocery, hardware stores, coffee shops and multiplex cinema.