PHARMACY retail chain Fontana Limited has started its new financial year on solid footing, posting record first-quarter revenues even as profits slipped due to higher costs associated with recent expansion activities.

For the three months ended September 30, 2025, total sales climbed to $2.5 billion — an increase of nearly 21 per cent over the same period last year. After a $6.4-million tax charge, net profit fell to $44.6 million — down 26 per cent — pushing earnings per share from $0.05 to $0.04.

“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,” Chairman Kevin O’Brien Chang and CEO Anne Chang said in a recent report to shareholders.

Earlier this year, Fontana acquired Monarch Pharmacy’s operations for just over $850 million, adding four new branches and expanding its retail footprint to 11 stores islandwide. The launch and growth of its premium beauty brand, Orá, has also helped the company to tap into a more upscale clientele.

Fontana closed its last financial year with $9.5 billion in revenue and $591.5 million in profit.

Even as total operating expenses for the quarter climbed 22.3 per cent to $821.6 million, driven by Monarch’s integration costs and a ramping up of activities at its Ora Fairview location, management noted these expenses as non-recurring, with expectations for expense levels to normalise as the locations mature.

The company ended the quarter with $6.9 billion in total assets — up 23 per cent from $5.6 billion in 2024 — reflecting higher inventory, investments in fixed assets, and goodwill from the Monarch acquisition.

“Cash and cash equivalents remain strong at $1.3 billion, an improvement of 8.1 per cent compared to the same period last year. Shareholders’ equity also increased 9.9 per cent to total $2.9 billion, up from $2.7 billion in the corresponding quarter,” the directors said as they underscored the continued strength of the company’s capital position.

Fontana’s strong start to the year came despite significant setbacks caused by Hurricane Melissa, which hit Jamaica as a powerful Category 5 system in late October. The company’s Montego Bay head office and Fairview store, as a result of the storm, suffered roof failure and extensive flooding, which severely disrupted operations.

“In the face of these extraordinary challenges our team has shown remarkable strength and resilience,” the directors said. “Through immense collective effort we successfully reopened the Fairview store to the public on November 10th, just two weeks after the storm — an achievement that speaks volumes about our team’s dedication and our operational agility.”

The CEO and chairman, in the report, said currently all Fontana locations are now open, though its western branches continue to observe reduced operating hours to ensure staff safety — especially as some team members continue to grapple with prolonged utility outages. To support affected members the company has launched a comprehensive assistance programme, providing essential supplies and helping employees repair and rebuild damaged homes.

“While our western stores may experience short-term contraction due to reduced operating hours, our locations outside of St James and Westmoreland continue to perform in line with historical performance, buoyed by strong customer demand,” the directors said as they noted that Fontana will continue to adapt and respond to the needs of customers throughout the extended recovery period.