Fontana expects to shrug off Melissa effects by new year

The outlook for Fontana Pharmacy remains positive as its stores in western Jamaica return to normality.

“Our Montego Bay store closed for two weeks and is currently operating at reduced hours. We expect this quarter to be impacted,” CEO Anne Chang told the Financial Gleaner.

“Going into the new year, we anticipate that we will return to similar pre-Melissa growth levels,” she said.

The Montego Bay head office and Fairview store sustained roof and floor damage, while the Westmoreland branch operates with reduced opening hours but no structural damage. No other locations across its 11-branch network were affected by the Category 5 storm which hit Jamaica on October 28.

Despite the reduced hours and temporary closures, Fontana could still capture incremental sales as “many places are closed” in the most-affected areas, limiting shopping options for consumers.

Chang noted that while its “western stores may experience short-term contraction due to reduced operating hours”, its locations outside of the parishes of St James and Westmoreland continue to perform in line with historical performance.

“Fontana will continue to adapt and respond to the needs of our loyal customers throughout this extended period of recovery,” she said.

Fontana Limited posted revenue of $2.6 billion during its first quarter ended September 2025, up 20 per cent year-on-year.

“This strong top-line performance underscores the successful continued integration of the Monarch Pharmacy chain and the positive momentum from our new high-concept Ora Beauty stores, both of which propelled the company to record first-quarter revenue,” the financial report stated.

However, heavier debt service costs of $86 million, up from $66 million a year earlier, cut into earnings, and resulted in a 26 per cent decline in profit to $44.6 million from $60.5 million. Cash grew eight per cent to $1.3 billion.

Fontana assets also climbed 23 per cent to $6.9 billion, reflecting higher inventories, fixed asset investments, and goodwill from its acquisition of rival pharmacy chain Monarch.

steven.jackson@gleanerjm.com