Durrant Pate/Contributor

Pharmacy chain, Fontana Limited, has seen its bottom line for the first quarter ended September 30, 2025, expand by more than 20 per cent due to the successful continued integration of its acquired  Monarch Pharmacy chain and the positive momentum from its high concept Ora Beauty stores.

Both these initiatives propelled Fontana to achieve record first-quarter revenue, which amounted to $2.5 billion, representing a robust 20.6% increase over the $2.1 billion reported in the corresponding period last year, based on the latest published audited results. Gross profit grew 19% over the prior year to $921 million. While gross margin experienced a modest adjustment from 37.5% to 37%, performance remained firmly within budgeted expectations, reflecting disciplined pricing and strong demand across the expanded network. 

Operating expenses increased 22.3% to $821.6 million, driven primarily by the ongoing integration of the Monarch locations and ramp-up activities associated with the Ora Fairview location. Chairman, Kevin O’Brien Chang and CEO, Anne Chang, say, “these expenses include several nonrecurring costs that were necessary to bring the acquired operations up to Fontana standards. As sales in these new locations scale towards expected run-rate performance over the coming quarters, we expect expense ratios to normalise and more closely align with our existing network.” 

Profitability dwindled

Operating profit ended the quarter at $100 million, which reflected a 2.6% decline compared to the same period in 2024. Other income increased 3.5% to $36.9 million, up from $35.7 million in 2024. Finance costs also increased by a margin of 30%, reflecting the impact of borrowings associated with the recent acquisition.

Despite this, earnings before interest, taxes, depreciation, and amortization (EBITDA), which is a measure of a company’s profitability of the operating business only, thus before any effects of indebtedness, state-mandated payments, and costs required to maintain its asset base, demonstrated the underlying strength of the core and expanded business, improving 4.4% to $171 million, up from $163.9 million last year. 

A tax provision of $6.4 million was recorded for the period, resulting in net profit of $44.6 million, a 26.2% decline versus the prior year. Earnings per share were $0.04, down from $0.05 in Q1 of the previous financial year. Total assets at the end of the quarter stood at $6.9 billion, reflecting a 23% increase over the $5.6 billion reported in the prior year. 

This expansion was driven primarily by higher inventory levels, strategic investments in fixed assets, and the recognition of goodwill from the Monarch acquisition. Cash and cash equivalents remained strong at $1.3 billion, an improvement of 8.1% compared to the same period last year. Shareholders’ equity increased 9.9% to $2.9 billion, up from $2.7 billion in 2024, underscoring the continued strengthening of the company’s capital position. 

Western Jamaica operations got hard hit

The passage of Hurricane Melissa and its devastating impact across Jamaica saw Fontana’s Montego Bay head office and Fairview store sustained major damage, including roof failure and flooding across both retail and corporate offices. In the face of these extraordinary challenges, the strength, resilience, and unity of the Fontana team have been nothing short of inspiring, as the staff rallied together, supported one another, and demonstrated the true Fontana family spirit. 

Through immense collective effort, the team successfully reopened the Fairview store to the public on Monday, November 10th, just two weeks after the storm – an achievement that speaks volumes about our team’s dedication and our operational agility. Today, all Fontana locations are open and serving customers, however, Western-based branches continue to operate during limited hours to ensure team members can return home safely before nightfall. 

While the western stores may experience short-term contraction due to reduced operating hours, locations outside of St. James and Westmoreland continue to perform in line with historical performance, buoyed by strong customer demand. Fontana will continue to adapt and respond to the needs of our loyal customers throughout this extended period of recovery.