5 months ago
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Pharmacy company Fontana Limited reported a double-digit increase in revenue during the Christmas period, but profit after tax fell.
“Revenues increased across all locations, with the Portmore store improving substantially over its prior year,” CEO Anne Chang and Chairman Kevin O’Brien Chang reported to shareholders.
The company’s quarterly revenue hit a record $2.7 billion, representing an increase of 15.3 per cent over the $2.4 billion for the corresponding quarter last year. The revenue growth occurred despite spending constraints affecting certain segments of the consumer market.
Fontana reported higher profit before tax for the quarter at $376 million, but taxes resulted in a dip to $326.6 million, which was below the $341-million profit earned in the previous year. There was “no comparable” tax provision in the second quarter 2023, as Fontana started paying tax at half-rate, effective January 2024. Companies listed on the junior arm of the Jamaica Stock Exchange, such as Fontana, receive 10 years of tax breaks, with the first five years at full exemption from income tax, and the ensuing five years at half the rate.
The pharmacy chain, which currently comprises seven stores, generated $8.1 billion in revenue over 12 months to June 2024, its financial year end.
Fontana recently announced that it would acquire the Monarch Pharmacy chain, which will expand its network from seven to 11 stores.
“The team is working assiduously on the due diligence process for our recently announced acquisition of the Monarch chain of pharmacies,” said Fontana.
Gerk Limited sold the chain to Fontana for an undisclosed sum.
Also for 2025, Fontana, which holds assets of $5.7 billion, plans to implement a new integrated point-of-sale system for its pharmacy department, along with the kick-off of a phased roll-out of new administrative software.
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