Anne Chang Chief Executive Officer of Fontana Limited has released the following extracted unaudited financial statements for the second quarter ended December 31, 2025. These financial statements have been prepared in accordance with IFRS Accounting Standards.
Fontana’s second quarter was severely impacted by Hurricane Melissa, one of the most powerful hurricanes on global record and the first Category 5 to ever hit Jamaica. The hurricane caused extensive national damage, costing the country over 41% of its GDP, and significantly affected business operations across the island, but particularly in the west. Like most businesses, Fontana was severely affected by its ravages, particularly in our Savanna La Mar and Montego Bay locations. While these disruptions resulted in performance below initial projections, we remain grateful for the resilience of our team and operations.
Fontana delivered 5.6% year-over-year revenue growth in the second quarter, despite the significant operational disruption caused by Hurricane Melissa.
Revenue totaled $2.9 billion, compared to $2.7 billion in the prior year. The quarter was materially affected by a 16day closure of our second-largest location by sales, reduced trading hours across all western region stores, and temporary disruption to our Montego Bay corporate offices.
Notwithstanding these challenges, the company achieved topline growth, underscoring the strength of our brand, diversified network, customer loyalty, and the contribution from the recently acquired Monarch locations.
Gross profit increased 2.8% to $1.1 billion. Gross margin moderated to 38.2% compared to 39.2% in the prior year. Margin compression primarily reflects lower sales volumes from higher-contribution western locations, operating inefficiencies associated with shorter opening hours, logistics challenges in rebalancing inventory across the network, and targeted team member and community support initiatives.
Operating expenses rose 22.2% to $840.8 million, compared to $687.9 million in the prior year. The increase was primarily driven by:
- Fixed cost absorption during the 16-day store closure
- Reduced operating leverage during shortened trading hours
- Integration costs for four Monarch locations
- Set-up costs for three new Ora concept stores
Importantly, a portion of these expenses relates to strategic expansion and integration activities that position the company for future growth as the locations continue to mature and scale.
Operating profit totaled $252.2 million, a 32.8% decline versus the prior year, directly attributable to storm-related interruptions.
EBITDA declined 17.4% to $523.3 million, compared to $633.5 million in the prior year. Excluding the temporary disruption and shortened trading hours, underlying earnings capacity remains strong.
After recording a tax provision of $29.5 million, net profit for the quarter totaled $201 million, down 38.7% year-overyear, with earnings per share of $0.16 compared to $0.26 in Q2 of the previous year.
Finance costs increased 72.4%, reflecting borrowings associated with recent acquisitions and strategic expansion initiatives, while other income rose 19.6% to $52 million.
The Company exited the quarter with a strengthened balance sheet and significant financial flexibility.
- Total assets: $7.2 billion (+25.9% YoY)
- Cash and cash equivalents: $2.0 billion (+23.9% YoY)
- Shareholders’ equity: $3.1 billion (+4.6% YoY)
Asset growth reflects continued investment in fixed assets, increased inventory to support network expansion, and goodwill arising from the Monarch acquisition.
The company’s strong cash position provides resilience and supports ongoing strategic initiatives, including network expansion and integration optimization.
The integration of the four Monarch locations and the continued rollout of the Ora by Fontana concept contributed positively to revenue growth during the quarter. As these locations mature and operational efficiencies are realized, management expects improved margin performance and stronger operating leverage.
With western operations now normalized and trading hours restored, the company anticipates a return to stronger profitability trends in the second half of the financial year.
Chief Executive Officer Anne Chang stated “Hurricane Melissa was a significant external event that temporarily disrupted our western operations. Our priority in the aftermath was ensuring the safety of our team members and supporting the communities we serve. Despite these challenges, we delivered revenue growth year-over-year – a clear demonstration of the resilience of our brand and operating platform. Our expanded network, disciplined execution, and customer loyalty remain core strengths. As operations normalize, we are confident in our ability to strengthen margins and sustain long-term growth.”
While second quarter profitability was temporarily affected by external disruption, underlying demand trends remain healthy. With normalized operations, continued integration progress, and disciplined cost management, Fontana enters the second half of the financial year positioned for improved margin performance and sustained growth.
Fontana Limited (FTNA) Unaudited Financial Statements For Second Quarter Ended December 31, 2025
