Fontana Limited is investing US$1 million in the development of a store next door to the recently-opened PriceSmart in Portmore, St Catherine.

Anne Chang, CEO of Fontana, confirmed that the store will be the pharmacy chain’s seventh location.

Chang told the Jamaica Observer that construction has already started on land which is leased and that estimated development cost is in the region of US$1 million ($155 million), although “there might be fluctuations.”

The company, however, has deep cash resources. Fontana, as disclosed in its second quarter financials released this March, has $1.72 billion in cash, compared to $822.8 in the similar period the year before.

The new store will be housed in a 25,000-square-foot commercial space, smaller than the Waterloo Road location which was opened in 2019.

Chang clarified, “We don’t own the land…we are leasing. We are aiming for [completion by] early 2023. It will be similar to Waterloo, but not as large, but [with] same look and feel.”

She told the Caribbean Business Report, “Portmore has the most growth opportunity in terms of population and is being underserved.” She noted that the development is expected to bring at least 50 jobs to Portmore when it opens next year.

Fontana, the pharmacy and retail chain, has six stores located in Kingston (which has two), Montego Bay, Ocho Rios, Mandeville, and Savanna-la-Mar.

Unaudited financial statements for the second quarter, which ended December 31, 2021, disclosed revenues increased to $1.85 billion, representing an increase of 20.2 per cent over the $1.54 billion of the corresponding quarter of the previous year.

The company’s newest store on Waterloo Road continues to show very positive year-over-year growth.

Chang said that while cost of sales grew by 24 per cent, impacted primarily “by an unprecedented 500 per cent plus increase in global container freight charges over the past 18 months caused by worldwide supply chain challenges, gross profit margin fell from 40.3 per cent last year to 38.7 per cent this year.”

Gross profits, however, increased by 15 per cent from $622 million to $717 million mainly attributable to volume growth.

Net profit was flat at $248 million for the second quarter. Net results for the six months ended was $309.96 million compared to $293.79 million in the similar period in 2021.