KUALA LUMPUR (Oct 30): Caring Pharmacy Group Bhd, which crossed the half-billion ringgit mark in sales last year, said it will spend RM6 million to RM8 million to add another 12 to 15 outlets this financial year ending May 31, 2019 (FY19), with more focus placed on second-tier cities.

In FY18, the group opened nine new community pharmacies, boosting its total outlets to 115 nationwide.

"Since our presence is strong in the Klang Valley and Johor Bahru, our attention and focus is to add more stores in second-tier cities. Operating a single store [in one given city] is definitely not cost-effective, we will continue to focus on adding outlets there to about three to five," group managing director Chong Yeow Siang told reporters after the group's annual general meeting here today.

Chong was referring to Kota Kinabalu in Sabah, Kota Bahru in Kelantan, and a city on the east coast of Peninsular Malaysia, Kuantan, Pahang — in which Caring had entered into last fiscal year — as well as new cities in Kedah, Perlis, Terengganu and Sarawak.

Chong said investment cost is approximately RM500,000 to RM600,000 per new outlet, with a 24-month gestation period each.

Speaking on outlook for FY19, Chong said the group is targeting a double-digit growth in overall sales and a 5% same store sales growth.

Shares in Caring were not traded in today's morning session. The stock last closed six sen or 3.64% up at RM1.71 yesterday for a market capitalisation of RM372.28 million.