THE City Pharmacy Ltd (CPL) posted a 36% increase in asset value to K47 million during the first six months of this year but suffered an 8% drop in gross profit, group chairman Mahesh Matel disclosed yesterday.
Company assets during the same period last year was valued at K29.96 million.
The company’s untaxed profit during the period in review was K3.9 million, down 8%, from K4.25 million posted for the same period last year.
Profit after tax during the period was K2.69 million, down from K3.571 million posted during the same period last year.
Mr Patel, while revealing the first half results, expressed confidence that CPL was seeing a strong second-half trading with increased sales in all divisions.
The new pharmacy outlets in Alotau and Kokopo would be opened this month and the company has signed off for a new supermarket development project at Badili in Port Moresby to be opened next year.
Mr Patel said trade margins had improved with focus on private labels and tighter controls on shrinkage and wastage.
“Efficiencies in the warehouse consolidation and supply chain have kicked in and we are seeing improvement in service levels and cost savings,” he said.
The company’s performance for first-half showed: total revenue was K99.57 million, up 1% from first-half last year’s K98.99 million; and operating revenue after tax attributes to shareholders was K2.69 million, down 25% from K3.57 million last year.