Fontana profit rebounds as revenue hits $2.6b after Hurricane Melissa disruption

Fontana Ltd, the pharmacy retailer with stores across Jamaica, has recorded its first year-on-year profit improvement since Hurricane Melissa disrupted its business. For the third quarter, net earnings moved up 11 per cent to $114.1 million, compared with $102.8 million in the same period last year.

Revenue also advanced, rising 17.7 per cent to $2.6 billion from $2.2 billion. The company linked the increase to stronger sales at existing stores, more customer visits and the inclusion of four Monarch Pharmacy outlets, which lifted Fontana's network to 11 locations.

In a joint statement accompanying the results, chairman Kevin O'Brien Chang and CEO Anne Chang said: "As the company enters the final quarter of the financial year, management remains encouraged by the continued recovery in consumer demand, improving operational efficiencies and the strong long-term prospects of the expanded Fontana network."

The latest numbers give another reading on how the retail sector is adjusting while some consumers continue to face pressure on spending power. Fontana has generally expanded sales faster than the wider market, while its earnings performance has depended heavily on keeping costs under control.

Hurricane Melissa hit Jamaica in October 2025, during Fontana's second quarter, which ended in December 2025. That period brought major strain to the economy, supply chains and shopping activity, with retailers among the businesses affected. Fontana's profit for the December quarter dropped to $201 million, down from $327 million a year before.

The March quarter was therefore the first reporting period since the storm in which the company's profit surpassed the corresponding quarter from the previous year.

"The third quarter represented a defining period of resilience and recovery for Fontana following the widespread disruption caused by Hurricane Melissa," the board said. "While Jamaica continued to confront the significant economic and social impact of the catastrophe, Fontana remained focused on serving customers, restoring operations and advancing its long-term strategic objectives."

Gross profit increased 16.2 per cent to $971 million. Fontana held its gross margin at 36.9 per cent, which the board credited to careful merchandising and pricing decisions.

Operating costs climbed 18.2 per cent to $812.8 million, up from $687.7 million. The increase reflected higher staffing expenses and one-off costs tied to bringing the Monarch stores into the group. Even so, operating profit rose 6.8 per cent to $158.2 million.

The board said Fontana was getting better coordination across the newly added outlets. "The company is also achieving stronger operational alignment across these locations," it stated. "These trends reinforce management's confidence in the long-term value and earnings potential of the acquisition."

At the end of the quarter, Fontana reported total assets of $6.6 billion. Shareholders' equity stood at $3.2 billion, 4.8 per cent higher than a year earlier, while cash and cash equivalents totalled $1.5 billion.