Thread by @stocksondrocks

Fontana Limited, $FTNA.ja, recently reported its Q1 earnings. Here's a #SOTRSummary:

-Sales ⬆️26%
-Operating Profit ⬆️ 27%
-Net Profit ⬆️43%

Management attributed this performance to higher sales and a shift in the sales mix to higher margin items.

Please read the Director's report for more details.

The net margin did in fact increase to 5.36% from about 4.7% for the same quarter last year. We note that this quarter would include back to school shopping.

Fontana's decision to raise 5 year debt in Dec 2021 has proven to be well timed as rates have since skyrocketed on the back of higher BOJ policy rates and liquidity tightening.

Leverage remains below 25% which is not bad.

We note that a majority of the increase in assets was due to higher inventories (new branch? XMas stock?) and more cash (left over from earnings and bond raise).

Two weeks ago the company announced that the opening of its new branch in Portmore will be delayed until summer 2023 due to "builder delays".

jamaica.loopnews.com/content/supply…

See below shareholdings of $FTNA.ja between July and September 2022.

Fontana closed at 8.92 yesterday which, when compared against its latest earnings, produces a PE of 17.5x.

Fontana started the year at about 7.50 and traded as high as 12+. The stock has since traded within that range with a bias on the lower end.

Are you looking forward to Portmore Fontana?

Tell us in our 2,000 member strong community here:

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