Fontana Limited, a well-established pharmacy and retail group in Jamaica, is set to broaden its reach through a forthcoming acquisition of Monarch Pharmacies. Monarch, owned by Gerk Limited (an entity linked to the Loshusan family), has operated for decades in the Kingston and Portmore areas.
Timeline and Transaction Details
Fontana made the announcement recently, revealing that due diligence on Monarch Pharmacies will commence immediately, with the overall deal anticipated to close in Fontana’s third fiscal quarter (January–March). Once finalized, the integration of Monarch’s operations into Fontana’s existing network is scheduled to continue for the rest of 2025. Although Chief Executive Officer Anne Chang declined to share specific figures or terms of the deal, Fontana’s latest financials indicate it held $1.19 billion in cash as of September 30, underscoring the company’s capacity to fund such a purchase. Historically, Fontana has relied on The Bank of Nova Scotia Jamaica Limited for its external debt financing.
Strategic Fit and Brand Growth
Commenting on the transaction, Chang described the acquisition as a strategic move to expand Fontana’s footprint and offerings. “We’ve always prioritized growth when it aligns with our commitment to quality healthcare and retail service,” Chang remarked. “Our aim is to bring Monarch Pharmacies under the Fontana umbrella in a way that benefits both our customers and the communities we serve.”
Fontana’s growth strategy has seen past success, notably with the purchase of the Azmart Limited haberdashery business in 2013—now the company’s Barbican location. Further restructuring took place in 2018, when Fontana acquired additional businesses before its public listing on the Jamaica Stock Exchange (JSE). This latest step to integrate Monarch signifies continued momentum in Fontana’s expansion goals.
Culture and Operational Integration
With Monarch Pharmacies located near existing Fontana branches in areas like Barbican, Half-Way-Tree, and Portmore, Chang acknowledged the importance of balancing efficiency with community needs. “Every store we bring on board must maintain our culture, which has guided us for 57 years,” she explained. “We hope to keep as many of the current employees as possible but need to assess operations and workflows to ensure mutual success.”
Monarch comprises four branches: three in Kingston (Sovereign Centre, Loshusan Plaza in Barbican, and Tropical Plaza near Half-Way-Tree) and one in Portmore’s Sovereign Village. Their proximity to Fontana’s existing pharmacies could present both logistical challenges and opportunities for improved coverage and customer service.
Financial Performance
Fontana recorded an 11% revenue uptick to $8.13 billion in the fiscal year ending June 2024, spurred partially by the opening of a Portmore branch in November 2023. However, increased expenses at the new site contributed to a 7% dip in operating profit, which stood at $696.52 million. After accounting for higher finance charges, profit before tax declined 4%, while net profit fell 10% to $589.78 million. This decrease is partly linked to the expiration of a tax remission in January 2024, which left the company subject to 50% of the standard 25% income tax rate.
Despite these narrower margins, Chang remains optimistic. She points out that Portmore’s performance has met internal targets and notes that the company is exploring additional warehouse space to manage inventory more efficiently—particularly important as the Monarch acquisition unfolds. As of June 30, Fontana’s assets totaled $5.68 billion, reflecting a 10% increase over the previous period.
Loshusan Family Focus and Market Reactions
For the Loshusan family, which has run pharmacies for 35 years, this sale aligns with a broader shift toward food retail and property development. Gerk Limited’s corporate status is currently categorized as “in removal with reference to BO (beneficial ownership)” by the Companies Office of Jamaica. Meanwhile, First Capital Corporation Limited—also associated with the Loshusan family—secured approval last year to develop a major commercial complex in New Kingston.
Industry observers note that this transaction follows a broader trend of pharmacy consolidations in the Caribbean. Last year, Massy Holdings Limited and Agostini’s Limited in Trinidad and Tobago acquired 10 Massy Pharmacies and rebranded them to Mpharmacy. In Jamaica, Indies Pharma Jamaica Limited is the only other JSE-listed company operating its own pharmacy, Trident Pharmacy in Montego Bay.
On the stock market, Fontana closed Thursday’s trading at $7.79, down 3.47% for the day and 4% year-to-date in 2025. The company’s next quarterly financials are expected by February 14, offering investors deeper insight into recent performance.
Looking Ahead
Fontana shareholders will have an opportunity to explore these developments when the company’s annual general meeting convenes on March 7 at the Grand-A-View Hotel in Montego Bay. With directors such as Anne Chang, Raymond Therrien, and Larren Peart up for re-election, investors will be closely watching leadership’s plans for the Monarch acquisition and Fontana’s ongoing growth trajectory in Jamaica’s ever-evolving pharmacy landscape.
