Fontana’s H1 2022 performance supported by revenue growth

• Fontana reported a net profit of $309.96Mn for its six months ending December 31, 2021, a 5.5% or $16.17Mn increase relative to the prior period.   
• Much of FTNA’s growth can be attributed to the improvement in its top line as revenues grew by 19.0% but were partially eroded by a 22.2% rise in direct costs. The company’s Waterloo store continued to show very positive year-over-year growth. Additionally, its strategy of building inventory early enabled it to remain fully stocked during the busy holiday season. However, the rise in container freight charges caused by worldwide supply chain challenges translated into a significant expansion in costs and resulted in a slower pace of net profit growth. 
• Going forward, Fontana is expected to see increased demand supported by the recovery and reopening of the economy as well as its new store opening in the Portmore Community. 
• Fontana’s stock price has increased by 32.96% since the start of the calendar year. The stock closed Monday’s trading session at $9.93 and currently trades at a P/E of 23.6x earnings, which is below the Junior Market Distribution Sector Average of 25.8x

(Source: Company Financials)