CPL turns profit after slow start

CITY Pharmacy Limited and subsidiaries reported that it had to overcome a particularly difficult second quarter of 2023 to finish the year on a positive note.
In its preliminary report for the 2023 financial year, the company reported a remarkable performance to overturn a K4.5 million deficit in the first half to record a K8.7 million profit before tax in the second.
“Disruptions to banking systems and the economic downturn hurt overall economic performance and consumer spending,” CPL reported.
“International food and energy price hikes, sparked by the Russia-Ukraine war, further squeezed the market.
“To make matters worse, a major internal IT outage resulted in significant data loss and disruption to business, taking months to recover from. “Despite these headwinds, the Group demonstrated agility and resilience.
“We implemented contingency plans, prioritised business continuity, and adapted to the evolving circumstances.”
The Group faced a K4.5 million loss before tax in the first half of 2023 but “demonstrated remarkable resilience to recover in the second half and declare K8.7 million profit before tax for the year-end”.
This turnaround signifies strong operational performance and positions the company for continued success in the coming year.
Compared to the previous 12 months, revenue and profits were significantly lower.
Revenue from ordinary operations in 2023 was K574.922 million, compared with K606.082 million in 2022 which is 5.14 per cent lower.
Profit after tax was drastically reduced from K17.746 million in 2022 down 60.88 per cent to K6.942 million.
The CPL Group is Papua New Guinea’s largest retailing network compromising six strong retail brands – City Pharmacy, Stop N Shop, Bon Cafe, Hardware Haus, Jacks of PNG and Prouds.
The company operates more than 60 retail outlets across the country.
Company reported that despite the struggles during the first half of the year, the pharmacy brands closed the year strongly with increased sales and operational performance.
“Footprint expansion and innovative marketing attracted new customers,” it said.
“Pharmacy retail and institutional teams exceeded expectations, achieving significant sales and gross profit growth.”