Cost of doing business results in drop in profit: CPL

City Pharmacy Limited Group of Companies experienced a drop in its annual profit for the year 2015.

CPL board chairman Mahesh Patel, in the company’s financial year annual report, stated that despite a sales increase from K401.11 million to K462.08 million last year, the company annual income dropped.

“Net profit after tax for the parent company was K7.35 million (2014: K7.55 million), whilst the group net profit after tax was K6.56 million (2014: K6.91 million).

“The drop was because the cost of doing business increased by 9.4 million, resulting in a negative impact on profitability,” Patel said.

He added that CPL group assets increased from K113.25 million to K116.13 million due to consolidation of the Hardware Haus business.

The company will pay 3 toea per share to its shareholders.

Patel is confident of a turnaround in 2016 with the opening of two new Stop N Shop outlets at Koki and Harbour City in Port Moresby.              

CPL Group’s combined retail operation of 64 stores nationwide comprises supermarkets, hardware stores, coffee shops, health and beauty shops, clothing company, coffee shops, duty free shops and cinemas.  

Charles Yapumi