Revenues, Profit Up for Fontana in H1  

 

• Fontana Limited recorded a net profit of $323.81Mn for the second quarter that ended December 31, 2022, representing a 30.1% yoy increase in profitability. Consequently, the company’s bottom line for the six months increased by 32.7% to $411.39Mn when compared to the same period in 2021.
• Revenues for the quarter were up by 15.1% yoy to a record-breaking $2.14Bn. Revenues for the six-month were $3.78Bn, representing a 19.5% increase when compared to the corresponding period of 2021. This was largely due to the increase in demand and expanded product offerings.
• Operating expenses were 29.9% higher ending the review period at $954.75Mn, driven by an increase in staff costs.
• Fontana’s stock price has decreased by 1.13% since the start of the calendar year. The stock closed Tuesday’s trading session at $8.83 and currently trades at a P/E of 15.5x which is below the Junior Market Distribution Sector Average of 17.2x.
• As part of its expansion plans, the company anticipates opening its Portmore store in the summer of 2023. The store is also expected to generate more revenue than the cost of developing the store within months given the strategic location and the growing population of the municipality.

 (Sources: JSE & NCBCM Research)