Fontana revenue climbs 17.7% in third quarter as earnings recover after Melissa

Fontana Limited has delivered a firmer third-quarter result, with executives pointing to a pickup in business after disruption tied to Hurricane Melissa.

Unaudited accounts for the three months to 31 March show revenue of $2.6 billion, a 17.7 per cent rise compared with the same quarter last year. The group said the increase reflected greater customer traffic, healthy comparable-store performance, and takings from Monarch Pharmacy sites it has bought in recently.

Gross profit grew 16.2 per cent to $971 million, while operating profit moved up 6.8 per cent to $158 million. Operating costs were higher as well, lifted by wage bills and spending to integrate Monarch into the business.

Net profit for the quarter was $114 million, an eleven per cent improvement, and earnings per share reached nine cents. Fontana closed the period with total assets of $6.6 billion and shareholders' equity of $3.2 billion, which it characterised as a solid footing on the balance sheet.