CPL Group - FY24 - Audited Consolidated Financial Statements

CPL Group - FY24 - Audited Consolidated Financial Statements.pdf

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Summary of the CPL Group FY24 Audited Consolidated Financial Statements, along with references to the specific sections/pages where the information appears:

1. Company and Group Background

   • Reference: “Company Information,” page 2; “Notes to the Consolidated Financial Statements,” pages 12–56.

   • CPL is incorporated in Papua New Guinea under the PNG Companies Act 1997. It operates 70 stores across PNG (approx. 2,100 employees) focused on wholesale and retail of supermarket goods, bakery, pharmaceutical, and hardware products, plus supply/installation of medical equipment. Joint ventures include retail clothing (Jacks of PNG) and duty-free (Prouds). The company is listed on PNGX (code: CPL).

     
     

2. Significant Events and Business Impact

   • Reference: “Chairman’s Report,” page 3; “Directors’ Report,” pages 4–5.

   • Looting & Fires (January 2024): Three stores in Port Moresby were destroyed, with combined losses of K47.9M. CPL received K18.9M from the PNG Government, but insurance claims remain under dispute.

   • Impacts on Operations: The unrest triggered a 12.7% drop in Group revenue to K500.5M. Law and order issues also affected trading, especially in the Highlands. CPL opened two new smaller-format supermarkets and three new pharmacies in 2024, plus seven wellness clinics.

     
     

3. Financial Results

   • Reference: “Consolidated Statement of Comprehensive Income,” page 7; “Chairman’s Report,” page 3.

   • Revenue: K500.5M in 2024 (versus K574.9M in 2023).

   • Net Loss After Tax: K8.8M at Group level (contrasting with a K6.0M profit the previous year). The Chairman noted this result was slightly below the mid-year expectation of breakeven.

     
     

4. Key Financial Statement Highlights

   • Reference:

     • “Consolidated Statement of Financial Position,” page 8.

     • “Consolidated Statement of Cash Flows,” page 11.

     • “Consolidated Statement of Changes in Equity,” pages 9–10.

   • Consolidated Statement of Financial Position (31 Dec 2024):

     • Total Assets: K445.4M

     • Total Liabilities: K277.6M

     • Total Equity: K167.8M

   • Consolidated Statement of Cash Flows:

     • Net cash inflow from operating activities: K36.7M

     • End-of-period cash and cash equivalents (net of overdraft): K7.25M

       
       

5. Going Concern Considerations

   • Reference: “Notes to the Consolidated Financial Statements” (particularly Note 2.3, Going Concern), pages 12–56; “Auditor’s Report,” pages 57–60.

   • CPL is in dispute with the IRC over GST (IRC claims K62.8M; CPL deems K2.6M was correct under previous disclosures, though the provision was increased to K12.1M after an objection determination).

   • Directors highlight civil unrest impacts and the GST dispute as key uncertainties. However, the Board still believes CPL remains a going concern, citing future government relief and management’s cost-control measures.

     
     

6. Capital Management and Borrowings

   • Reference: “Notes to the Consolidated Financial Statements,” pages 12–56 (especially notes on borrowings and lease liabilities).

   • Gearing is around 43%, modestly better than 45% in 2023. No material breaches of covenants were reported.

     
     

7. Auditor’s Opinion

   • Reference: “Auditor’s Report,” pages 57–60.

   • Ernst & Young provided an unqualified opinion, highlighting the going concern discussion as a key matter but concluding that the financial statements comply with IFRS and PNG Companies Act 1997.

     
     

8. Directors & Governance

   • Reference: “Directors’ Report,” pages 4–5; “Directors’ Declaration,” page 6.

   • Board composition includes executive, non-executive, and independent directors. Four full Board meetings were held during 2024. Key committees: Audit, Risk, People & Culture.

     
     

9. Future Outlook

   • Reference: “Chairman’s Report,” page 3.

   • CPL is undertaking a strategic review of business divisions, with completion targeted for mid-2025. Despite 2024 losses, management remains positive about long-term prospects in PNG.

Overall Conclusion:

The FY24 was heavily affected by the January 2024 civil unrest, leading to closures of three major stores, contested insurance claims, and a notable decrease in revenue. CPL recorded a K8.8M loss compared to the previous year’s profit. Nonetheless, strategic expansions (smaller-format stores, more pharmacies, new clinics) and joint venture stability are cited as positive indicators. Management’s focus on cost optimization, combined with additional government relief, supports their confidence in CPL’s ability to remain a going concern.

All page references above are based on the “CPL Group - FY24 - Audited Consolidated Financial Statements” document’s table of contents and section headings.