CPL Group is pleased to report a significant improvement in profitability for the first half of 2026, driven by the successful execution of its strategic transformation initiatives, growth in its pharmacy business, and stronger contributions from joint venture partners.
For the six months ended June 2026, CPL Group recorded revenue of K171.27 million, compared with K250.41 million in the corresponding period last year. The reduction reflects the divestment of Stop & Shop.
Excluding Stop & Shop revenue from the prior corresponding period, revenue from continuing operations increased by approximately 15%, rising from K149.50 million to K171.27 million.
Group profit before tax increased significantly to K7.24 million, up from K2.85 million in the same period last year, representing growth of 154%.
Board Chair Stephanie Copus Campbell, AM GAICD, said the result demonstrated the benefits of the Group’s strategic focus on operational efficiency and sustainable growth.
“The substantial increase in profitability reflects the successful implementation of our SNS divestment strategy, operating cost restructuring initiatives, and continued growth within our pharmacy division.”
The Group’s joint ventures with Jacks of PNG and Prouds continued to deliver strong results, contributing K2.03 million in profit during the period, compared with K1.58 million in the prior corresponding period, representing growth of 28%.
“We recognise that sustainable shareholder value depends not only on revenue growth but also on converting that growth into consistent profitability and cash generation. This objective remains central to CPL’s performance improvement agenda,” Ms Copus Campbell said.
The Board also welcomed the appointment of Mr Ajay Patel as Group Chief Executive Officer and reaffirmed its commitment to providing strong governance, strategic direction, and oversight as the Group continues its transformation journey.
Ms Copus Campbell, who was appointed Board Chair in May 2026, said the Board and management team are focused on positioning CPL for long-term success.
A key pillar of the Group’s future growth strategy remains healthcare.
“We remain excited by CPL’s health strategy. Our medical centres are gaining momentum, and early customer uptake reinforces our belief that there is strong demand for accessible, affordable, and quality primary healthcare services across Papua New Guinea.”
She said CPL’s established pharmacy network, medical capabilities, and trusted brand provide a strong platform to build an integrated health offering over time.
“While we do not underestimate the work ahead, CPL has a clear strategic opportunity, an experienced Board, renewed executive leadership, and a strong national platform. We are confident the actions now underway will deliver more sustainable performance and long-term value for shareholders.”
Reflecting the improved financial performance, the Board has declared an interim dividend of 2 toea per share.
Ms Copus Campbell thanked the Group’s customers, shareholders, management, and employees for their ongoing support.
“On behalf of the Board, I would like to thank our customers, shareholders, management, and staff for their continued commitment and support during this transformational period for the company.”
The Full 2026 Financial Half Year Results can be viewed here