Revenues at all-time high of J$2.1 billion for the period

Durrant Pate/Contributor

Revenues for the December 2022 second quarter at pharmacy chain, Fontana Limited, surged to record levels, continuing the positive performance from the previous quarter.

Revenues for the quarter went up to a record breaking J$2.1 billion, an increase of 15 per cent over the J$1.8 billion for the corresponding quarter of 2021. Net profit grew by 30 per cent, closing at J$323.8 million versus the J$248.8 million earned last year.

Gross profit went up 16.7 per cent from J$717.2 million in Q2 of 2021 to J$836.9 million for the quarter under review. Gross profit margin came out at 39.2 per cent compared to 38.7 per cent last year, as Fontana continues to experience economies of scale, having progressed from the pandemic-related challenges of 2021.

Surge in expenses

Operating expenses increased by 25.3 per cent to J$490.5 million, up from J$391.5 million over prior year. The management reports that, “while staff costs continue to be the main driver of this, we continue to balance the reinforcement of cost containment measures and staff welfare and retention. Despite this, our operating profit increased by 6.4 per cent to J$346.5 million this quarter.”

Finance costs went down 42.8 per cent ending the quarter at J$53.9 million compared to J$94.3 million in the prior quarter. Proper planning for new lease arrangements and foreign currency gains assisted in this reduction.

Other income saw a 79.5 per cent jump ending the quarter at J$31.2 million compared to J$17.4 million earned last year as the pharmacy chain benefited from higher interest earnings on our investments.

Profitability improving

Net profit for the quarter went up to J$323.8 million, compared with J$248.8 million recorded in the prior period. These represented J$0.26 earnings per share versus J$0.20 for the prior period.

The net profit margin increased from 13.4 per cent prior year to 15.2 per cent in the current year. Total assets at the end of the quarter stood at J$5 billion, up from $4.8 billion in the previous comparative period, reflecting an increase of 4.3 per cent.

Fontana’s cash and cash equivalents remain favourable at J$1.68 billion, as the company move to rapidly into the build out segment for its new Portmore store scheduled to open in late 2023. This was after paying dividends of almost $125 million in the quarter.

Shareholder’s equity grew to $2.45 billion, up from $1.99 billion or 23 per cent over the prior year.