Fontana says supply chain intact amid strong quarter
Pharmacy operator Fontana Limited grew its profit by 20 per cent in the December 2019 quarter due to activity at its new Waterloo Square branch in Kingston.
The outlook remains strong, both from the perspective of sales and purchases, according to CEO Anne Chang.
The company buys from China to stock its stores, but Chang told the Financial Gleaner that their suppliers in China are reporting no blockages along the supply chain, notwithstanding the curtailment of manufacturing activity there while the country deals with the deadly coronavirus outbreak.
“We have adequate stock at this time,” Chang told the Financial Gleaner. “Our current Chinese suppliers are working to get factories back up and running, and we do not foresee any stock issues at this time.”
Revenue for the quarter totalled $1.4 billion, representing a record 31 per cent increase over the $1.07 billion earned in the comparable quarter a year earlier. The numbers included nearly three months of sales for Fontana Waterloo, which opened for business last October, the sixth store in the chain and the largest at 35,000 square feet.
The company described the December performance as its most successful quarter in its over 50-year history of operations, with the new Waterloo Square location surpassing expectations.
“Growth is coming from multiple locations, but a healthy amount from Waterloo,” said Chang.
The other Kingston location at Barbican was more than “holding its own,” she added – a suggestion that the newcomer was not seen as cannibalising Barbican’s business.
The addition of the property resulted in the 70 per cent growth in total assets to $3.3 billion from $1.96 billion a year earlier. This positively impacted the company’s net value, measured by shareholder equity, which grew 26 per cent to $1.43 billion.