November 13, 2026
Fontana Limited (FTNA)
Unaudited financials for the first quarter ended September 30, 2026:
Fontana Limited (FTNA), for the first quarter ended September 30, 2026, reported a 9.9% increase in revenues, totaling $2.74 billion, compared to $2.49 billion in the corresponding three-month period last year.
Cost of Sales amounted to $1.71 billion (2025: $1.57 billion), representing an 8.6% year-over-year increase. Consequently, gross profit rose by 12.2% to $1.03 billion, compared to $921.62 million for the first quarter ended September 30, 2025. Gross margin improved from 37.0% to 37.7%, which management attributed to merchandising, procurement efficiencies and margin management.
Administrative and Other Expenses increased by 2.2%, closing at $831.11 million (2025: $813.09 million, restated), while Selling and Promotion expenses declined by 9.1%, moving from $23.15 million in 2025 to $21.05 million. As a result, total operating expenses for the first quarter amounted to $852.16 million, a 1.9% increase relative to $836.24 million reported in 2025. Operating expenses fell to 31.1% of revenue from 33.5%, reflecting stronger operating leverage across the expanded store network.
Operating profit for the three months amounted to $182.07 million, reflecting a 113.2% increase compared to $85.38 million reported in 2025 (restated), with the operating margin widening from 3.4% to 6.6%. Other income rose 18.1% to $43.61 million (2025: $36.94 million), while Finance Costs totaled $80.59 million, a 6.2% decrease from the corresponding period last year (2025: $85.88 million).
Profit before taxation for the first quarter ended September 30, 2026, amounted to $145.09 million, compared to $36.44 million reported in 2025 (restated). The taxation charge for the three months was $21.60 million (2025: $6.42 million), resulting in net profit of $123.49 million, a 311% increase from $30.02 million reported in 2025. Management attributed the improvement to disciplined expense management, stronger gross margins and increased operating efficiency.
Consequently, Earnings Per Share for the three months amounted to $0.10 (2025: EPS: $0.02). The twelve-month trailing EPS was $0.48, and the number of shares used in these calculations was 1,249,374,825. Notably, FTNA’s stock price closed the trading period on November 12, 2026, at a price of $6.16 with a corresponding P/E ratio of 12.80x.
Balance Sheet Highlights
The company’s assets totalled $6.67 billion (2025: $6.85 billion, restated). The movement in total assets was due to a 10.1% decrease in ‘Intangible assets’ amounting to $782.77 million (2025: $870.74 million), reflecting amortisation of the Monarch acquisition intangibles, and a 5.7% decrease in ‘Inventories’ amounting to $2.20 billion (2025: $2.33 billion), although inventories rose 9.0% from $2.02 billion at June 30, 2026. Cash and cash equivalents rose 16.1% to $1.50 billion from $1.29 billion.
Shareholders’ equity was $3.18 billion (2025: $2.90 billion, restated), representing a book value per share of $2.55 (2025: $2.32, restated; previously published as $2.34).
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