R.A. Williams’ Q1 Results Falter Due to Expansion Efforts

• For the three months ended July 31, 2025 (Q1 2025/2026), Pharmaceutical Distributor, R.A. Williams Distributors Limited (RAWILL) reported a net loss of J$1.91Mn a sharp deterioration from a net profit of J$24.06Mn in Q1 2024/2025, owing to higher operating expenses.
• Total revenues rose 7.6% YoY to J$417.0Mn, supported by stronger demand and the successful integration of new pharmaceutical product lines. The late-2024 integration of Iracet^[1] and six other new products has positioned R.A. Williams for stronger revenue generation heading into FY2025/26.
• However, this did not translate to the bottom line due to brisk growth in direct and indirect costs, which eroded margins. Direct costs increased by 16.0% to J$228.8Mn, outpacing the growth in revenues. Consequently, the gross profit margin dipped 3.9 percentage points to 45.1%. Operating profit fell sharply to J$15.2Mn from J$48.2Mn in Q1 2024, weighed down by administrative expenses (+17.6%) and selling & distribution costs (+29.4%), both linked to the company’s wider scale of operations.
• That said, finance costs improved during the quarter to J$17.09Mn (down 13.3%) relative to J$19.72Mn in Q1 2024/2025, reflecting lower debt service costs.
• Despite topline growth and lower finance costs, the bottom line was negatively impacted, registering a 107.9% decline.
• Management highlighted portfolio expansion with the onboarding of Ryvis Pharma and new anti-fungal products, alongside continued investments in distribution scale and community initiatives. These are expected to strengthen future revenue growth, though execution will carry near-term cost pressures.
• RAWILL’s stock price declined by 50.7% year-to-date, closing at $0.37 as at Tuesday, September 16, 2025. 

(Sources: RAWILL Ltd & NCBCM Research)

 

^[1] The first and only generic alternative to the brand Keppra available in Jamaica. Keppra is an epilepsy medicine.