PHARMACEUTICAL distributor RA Williams Limited is plotting a return to profitability after recording its second-consecutive quarterly loss, the latter largely driven by the disruptive impact of Hurricane Melissa which severely affected key revenue-generating areas in western Jamaica.

Following a near $2-million loss in the first quarter, CEO Audley Reid said the company was on track to reverse its misfortunes in the second quarter as October shaped up to be a record month. However, the passage of Hurricane Melissa on October 28 derailed those expectations, forcing business closures and resulting in the loss of approximately six to eight days of sales during what was expected to be a strong period.

“The hurricane had a major impact in some of our high-revenue-performing parishes such as St Elizabeth, Westmoreland, Hanover, Trelawny and St James. These parishes account for a significant portion or about 35-40 per cent of our sales in the western region,” Reid said during an interview with the Jamaica Observer last week.

Outlining the damage sustained by two of his customers in Black River, he said their entire operations were wiped out by the hurricane.

“The infrastructure and just about everything that they had were reduced to rubble. Several of our customers in Santa Cruz were also impacted as a number of their goods on the shelf were completely damaged by flood water. As such, we’ve had to be working to assist them to get back on their feet — even some of our very large customers, who I will not name, that have had to write to us requesting extended payment timelines,” he further told the Business Observer as he pointed to the continued closure of Megamart and Livewell pharmacies in Montego Bay, St James.

For the second quarter ended October 31, 2025, RA Williams recorded a 32 per cent increase in revenues to $485 million but posted a loss of $26.8 million. This contributed to half-year losses of $28.7 million, despite revenues rising to $902 million over the period.

Reid said that while sales in the western region have contracted, management is actively working to overcome the fallout. Following the implementation of expenditure contraction measures — including reduced marketing spend and a staff reduction exercise — he expressed confidence that the company will deliver positive results in the third and fourth quarters.

Despite the setback, early signs of recovery have already emerged. November delivered positive sales and profits, reinforcing management’s belief that the business is now turning the corner. The company had anticipated early losses in the financial year due to heavy upfront investments in infrastructure, staffing, and marketing aimed at strengthening its operational foundation. While improvements were expected in the second quarter, the hurricane delayed that recovery.

“After losing eight days in October we ended at a loss, but things are starting to turn now. We are seeing positive numbers from the start of the third quarter so things are looking good,” Reid said.

Looking to close the financial year on a stronger footing the company, through the continued expansion of its product lines, remains bullish on future growth prospects. Recently adding an epileptic drug and growing the Ryvis Pharma portfolio beyond 20 drugs, Reid said these have both contributed meaningfully to the company’s bottom line even as competition in the market has resulted in tighter margins.

The roll-out of a Sir Henry tumeric ginger shot, manufactured by Virginia Dare during the reporting quarter, has also been well received by the market following a soft launch in September and wider roll-out in October. Strong demand in pharmacies has encouraged the company to expand distribution into gas stations and other retail outlets.

“People have been asking for the product and really seem to like it. The feedback from our clients has also been positive, and we expect the line to grow even further over the next couple of months as we continue to roll it out to more stores,” Reid said.

Looking ahead, management remains cautiously optimistic despite uncertainty surrounding the broader economic fallout from the hurricane. While growth for 2026 was initially projected at 15 to 20 per cent, Reid said stronger out-turns may be possible, given increasing interest from potential distribution partners.

Notwithstanding current teething pains, the directors of RA Williams said the company, now in its second year as a listed entity, is well positioned to rebound from the challenges posed by Hurricane Melissa and return to sustained profitability. For the financial year ended April 30, 2025 the company’s revenue totalled $1.6 billion with profit of $28.6 million.

“As the company continues its recovery into the third quarter, focus will be directed towards stabilising revenue, portfolio expansion, and strengthening engagement with health-care professionals,” Chairman John Bailey said in the company’s most recent report to shareholders.

“Our outlook remains positive. We’re also now in talks to enter two distribution partnerships in the eastern Caribbean with our exclusive Square and AristoPharma lines, but more details will be shared on this as it becomes available,” Reid added.

The RA Williams headquarters at New Brunswick Village in Spanish Town, St Catherine