Jamieson Wellness Inc. Reports First Quarter 2025 Results

Business Wire

Thu, May 8, 2025, 2:05 PM 19 min read

TORONTO, May 08, 2025--(BUSINESS WIRE)--Jamieson Wellness Inc. ("Jamieson Wellness" or the "Company") (TSX: JWEL) today reported its first quarter results for the period ended March 31, 2025. All amounts are expressed in Canadian dollars. Certain metrics, including those expressed on an adjusted basis, are non-IFRS and other financial measures. See "Non-IFRS and Other Financial Measures" below.

"Our team delivered solid results in Q1 that continued to demonstrate the power of our strategy in action," said Mike Pilato, President and CEO of Jamieson Wellness. "Consolidated revenue growth in the quarter was 14%, and branded revenue growth of 13.9% exceeded our expectations. We also grew Adjusted EBITDA ahead of revenue, reflecting both sustained global demand for our products and our team's precise execution in meeting that opportunity.

"Our China business grew over 50% in Q1 as we capitalized on our strategic investments and tailored approach to this key region. In the U.S, we are on track to meet our growth expectations as we are actively expanding the youtheory brand with our new e-commerce partner. Our strategic initiatives in Canada and International markets reflected both category strength and our continued ability to outpace market growth.

"2025 is off to a great start. We're executing on our innovation roadmap, expanding channel reach, and enhancing operational efficiency to maintain this momentum. This focused strategy will continue to drive revenue, EBITDA, and cash flow growth in the coming year. We're grateful for our team's unwavering dedication and the loyalty of our customers and consumers as we continue to deliver innovative natural health solutions and build on our foundation of profitable growth."

First Quarter Highlights

Strong consumer consumption in Canada led by continued growth in club and e-commerce channels
Revenue growth in China exceeded expectations, driven by strengthening brand awareness, focus on social commerce, retail, and cross-border strategies
Elevated consumer consumption of the youtheory brand across all channels, impacted by timing of innovations in the same quarter prior year
Immunity and women’s health focused campaigns drove demand in the Middle East and Asia
Published second annual sustainability impact report, detailing progress towards the Company’s 2030 and 2050 sustainability goals

First Quarter Financial Results Consolidated Summary

All comparisons are with the first quarter of 2024

Consolidated revenue increased 14.0% to $146.0 million, driven by 13.9% growth in Jamieson Brands and 14.9% growth in Strategic Partners
Gross profit increased by $12.4 million to $55.2 million; normalized gross profit increased by $10.4 million largely driven by higher revenues and increased margins
Gross profit margin³ increased by 440 basis points; normalized gross profit margin increased 270 basis points due to volume driven efficiencies and favourable channel mix
EBITDA¹ increased by $0.6 million to $7.8 million, mainly driven by higher revenues and gross profit; Adjusted EBITDA¹increased by $3.0 million or 18.4% to $19.1 million, reflecting the impact of higher sales volumes and gross profit margins, partially offset by investments in SG&A
Net loss was $2.5 million; Adjusted net earnings¹ was $5.9 million, or $2.0 million higher, reflecting higher normalized earnings from operations
Diluted earnings per share was ($0.06); Adjusted diluted earnings per share² was $0.14

Summary of Segment Results

All comparisons are with the first quarter of 2024

Jamieson Brands

Revenue increased 13.9% or $16.0 million to $131.4 million
- Canada revenue increased by 14.3% to $69.5 million, driven by continued strong consumer consumption and pricing while lapping lower shipments prior year due to the labour disruption
- China revenue increased 52.1% to $28.5 million, driven by strengthening of brand awareness and growth in social e-commerce that continues to outpace the market
- youtheory revenue declined by 13.0% to $26.5 million as expected. Strong consumption driving shipment growth of 16.5% in traditional channels in the quarter was offset by the impact of lapping innovation pipefill in Q1 2024. Q1 2025 revenue growth increased by 19.3% vs Q1 2023.
- International revenue increased by 28.8% to $6.9 million, driven by growth in key markets while lapping lower shipments prior year due to the labour disruption
Gross profit increased by $12.7 million to $53.8 million; normalized gross profit increased by $10.4 million mainly due to higher revenues and increased margins
Gross profit margin³ increased by 520 basis points to 40.9%; normalized gross profit margin increased by 320 basis points to 41.7%, mainly due to volume driven efficiencies and favourable channel mix
Adjusted EBITDA¹ increased by $3.1 million to $18.3 million, driven by higher gross profit partially offset by increased investments in SG&A to support growth and brand awareness in China; Adjusted EBITDA margin² was 13.9%, an increase of 80 basis points mainly due to higher normalized gross profit

Strategic Partners

Revenue increased 14.9% or $1.9 million to $14.6 million, driven by shipments of new customer contracts awarded in the fourth quarter of the prior year and timing of customer orders
Gross profit was $1.4 million, a decrease of $0.2 million; gross profit margin³ was 9.8%, a decrease of 320 basis points; normalized gross profit margin decreased by 160 basis points to 11.4% driven mainly by customer mix
Adjusted EBITDA¹ was $0.8 million, a decrease of $0.2 million; Adjusted EBITDA margin² was 5.4%, a decrease of 230 basis points

Balance Sheet and Cash Flow from Operations

All comparisons are with the first quarter of 2024

As at March 31, 2025, the Company had approximately $246.1 million in cash and available revolving and swingline facilities and net debt¹ of $253.9 million
The Company generated $31.6 million in cash from operations compared to $7.3 million used in Q1 2024
Cash from operating activities before working capital considerations of $4.7 million was consistent with prior year
Cash generated from working capital increased by $38.8 million driven by lower accounts receivable due to the timing of customer collections
During the period ended March 31, 2025, the Company purchased for cancellation 348,160 Common Shares under its NCIB program for an aggregate consideration of $10.0 million

¹ This is a non-IFRS financial measure. See the "Non-IFRS and Other Financial Measures" section of this press release for more information on each non-IFRS financial measure.

² This is a non-IFRS ratio. See the "Non-IFRS and Other Financial Measures" section of this press release for more information on each non-IFRS ratio.

³ This is a supplementary financial measure. See the "Non-IFRS and Other Financial Measures" section of this press release for more information on each supplementary financial measure.

Maintaining Fiscal 2025 Outlook

The Company is maintaining its outlook for the 2025 fiscal year and continues to anticipate the following:

Revenue to range between $800.0 to $840.0 million (+9.0% to +14.5% growth)
Adjusted EBITDA to range from $157.0 to $163.0 million (+11.0% to +15.5% growth)
Adjusted diluted earnings per share to range from $1.82 to $1.93 (+13.0% to +20.0% growth)

Based on the currently announced tariff framework, which the Company recognizes is constantly evolving, no material impact is expected in 2025. For additional details on the Company’s fiscal 2025 outlook, including guidance for the second quarter of 2025, refer to the "Outlook" section in the management’s discussion and analysis of financial condition and results of operations ("MD&A") for the three months ended March 31, 2025.

Declaration of First Quarter Dividend

The board of directors of the Company declared a cash dividend for the first quarter of 2025:

$0.21 per common share, or approximately $8.8 million in the aggregate
Paid on June 13, 2025 to all common shareholders of record at the close of business on May 30, 2025
The Company has designated this dividend as an "eligible dividend" for the purposes of the Income Tax Act (Canada)

Consolidated Financial Statements and Management’s Discussion and Analysis

The Company’s unaudited condensed consolidated interim financial statements and accompanying notes as at and for the three months ended March 31, 2025 and related MD&A are available under the Company’s profile on SEDAR+ at www.sedarplus.ca and on the Investor Relations section of the Company’s website at https://investors.jamiesonwellness.com.

Conference Call

Management will host a conference call to discuss the Company’s first quarter 2025 results at 5:00 p.m. ET today, May 8, 2025. To access:

By phone: 1-844-763-8274 from Canada and the U.S. or 1-647-484-8814 from international locations
Online: https://investors.jamiesonwellness.com or https://www.gowebcasting.com/14031

About Jamieson Wellness

Jamieson Wellness is dedicated to Inspiring Better Lives Every Day with its portfolio of innovative natural health brands. Established in 1922, the Jamieson brand is Canada's #1 vitamins, minerals and supplements ("VMS") brand. The Company’s youtheory brand, acquired in 2022, is an established and growing lifestyle brand in the U.S. Combined, these global brands are available in more than 50 countries worldwide. The Company also offers a variety of innovative VMS products as well as sports nutrition products to consumers in Canada with its Progressive, Smart Solutions, Iron Vegan and Precision brands. The Company is a participant of the United Nations Global Compact and adheres to its principles-based approach to responsible business. For more information please visit jamiesonwellness.com.

Jamieson Wellness’ head office is located at 1 Adelaide Street East Suite 2200, Toronto, Ontario, Canada.

Forward-Looking Information

This press release may contain forward-looking information within the meaning of applicable securities legislation. Such information includes, but is not limited to, statements related to the Company’s anticipated results and its outlook for its 2024 revenue, Adjusted EBITDA and Adjusted diluted earnings per share. Words such as "expect", "anticipate", "intend", "may", "will", "estimate" and variations of such words and similar expressions are intended to identify such forward-looking information. This information reflects the Company’s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company’s control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in the Company’s Annual Information Form dated March 31, 2025 and under the "Risk Factors" section in the MD&A filed today, May 8, 2025. This information is based on the Company’s reasonable assumptions and beliefs in light of the information currently available to it and the statements are made as of the date of this press release. The Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law or regulatory authority.

The Company cautions that the list of risk factors and uncertainties is not exhaustive and other factors could also adversely affect the Company’s results. Readers are urged to consider the risks, uncertainties and assumptions associated with these statements carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. See "Forward-looking Information" and "Risk Factors" within the MD&A for a discussion of the uncertainties, risks and assumptions associated with these statements.

Jamieson Wellness Inc.
Selected Consolidated Financial Information
In thousands of Canadian dollars, except share and per share amounts

	Three months ended
	March 31
	2025		2024

Revenue	145,963		128,038
Cost of sales	90,743		85,253
Gross profit	55,220		42,785

Gross profit margin	37.8	%	33.4	%

Selling, general and administrative expenses	49,587		39,558
Share-based compensation	2,087		1,749
Earnings from operations	3,546		1,478

Operating margin	2.4	%	1.2	%

Foreign exchange loss/(gain)	504		(771	)
Interest expense and other financing costs	4,908		4,873
Accretion on preferred shares	2,272		2,219
Loss before income taxes	(4,138	)	(4,843	)
Recovery of income taxes	(1,624	)	(1,124	)
Net loss	(2,514	)	(3,719	)

Net loss attributable to:
Shareholders	(2,446	)	(4,113	)
Non-controlling interests	(68	)	394
	(2,514	)	(3,719	)
Adjusted net earnings	5,948		3,915

EBITDA	7,797		7,149
Adjusted EBITDA	19,066		16,097

Adjusted EBITDA margin	13.1	%	12.6	%

Weighted average number of shares
Basic	41,979,827		41,479,861
Diluted	41,979,827		41,479,861

Earnings per share attributable to common shareholders:
Basic, earnings per share	(0.06	)	(0.09	)
Diluted, earnings per share	(0.06	)	(0.09	)
Adjusted diluted, earnings per share	0.14		0.09

Jamieson Wellness Inc.
Consolidated Statements of Financial Position
In thousands of Canadian dollars

	March 31, 2025	December 31, 2024
Assets
Current assets
Cash	41,113	44,787
Accounts receivable	128,113	228,031
Inventories	177,947	154,658
Derivatives	1,441	2,661
Prepaid expenses and other current assets	8,757	6,803
Income taxes recoverable	4,037	-
	361,408	436,940
Non-current assets
Property, plant and equipment	102,294	103,591
Goodwill	287,454	287,503
Intangible assets	375,684	377,214
Deferred income tax	3,855	3,545
Total assets	1,130,695	1,208,793

Liabilities
Current liabilities
Accounts payable and accrued liabilities	97,284	137,653
Income taxes payable	990	4,373
Derivatives	2,688	2,982
Current portion of other long-term liabilities	27,740	27,673
	128,702	172,681
Long-term liabilities
Long-term debt	295,000	308,285
Post-retirement benefits	1,238	1,209
Deferred income tax	62,601	64,467
Redeemable preferred shares	100,410	98,138
Other long-term liabilities	14,334	15,633
Total liabilities	602,285	660,413

Equity
Share capital	325,426	326,219
Warrants	14,705	14,705
Contributed surplus	24,029	23,835
Retained earnings	80,521	99,109
Accumulated other comprehensive income	40,576	41,313
Total shareholders' equity	485,257	505,181
Non-controlling interests	43,153	43,199
Total equity	528,410	548,380
Total liabilities and equity	1,130,695	1,208,793

Non-IFRS and Other Financial Measures

This press release makes reference to certain financial measures, including non-IFRS financial measures that are historical, non-IFRS measures that are forward-looking, non-GAAP ratios and supplementary financial measures. Management uses these financial measures for purposes of comparison to prior periods and development of future projections and earnings growth prospects. This information is also used by management to measure the profitability of ongoing operations and in analyzing the Company’s business performance and trends. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company’s results of operations from management’s perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS. The Company uses the following non-IFRS financial measures: "EBITDA", "Adjusted EBITDA" and "Adjusted net earnings", the most directly comparable financial measure for each that is disclosed in its financial statements being net earnings, "normalized gross profit", "normalized SG&A", "normalized earnings from operations", "cash from operating activities before working capital considerations" and "net debt", the most directly comparable financial measures for each that is disclosed in its financial statements being gross profit, SG&A, earnings from operations, cash flows from operating activities, and long-term debt, respectively, the following non-IFRS ratios: "Adjusted EBITDA margin", "Adjusted diluted earnings per share", "normalized gross profit margin", "normalized operating margin", and the following supplementary financial measures: "gross profit margin" and "operating margin" to provide supplemental measures of the Company’s operating performance and thus highlight trends in the Company’s core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management also uses non-IFRS and supplementary financial measures in order to prepare annual operating budgets and to determine components of management compensation. For an explanation of the composition of each such measure and the usefulness and additional uses of each by management, see the "How we Assess the Performance of our Business" section of the MD&A, which is incorporated by reference. See below for a quantitative reconciliation of each non-IFRS financial measure to its most directly comparable financial measure disclosed in the Company’s financial statements to which the measure relates.

The following tables provide a quantitative reconciliation of net earnings to EBITDA, Adjusted EBITDA, and Adjusted net earnings, as well as gross profit to normalized gross profit, SG&A to normalized SG&A, earnings from operations to normalized earnings from operations and net debt, each of which are non-IFRS financial measures (see the "Non-IFRS and Other Financial Measures" of this press release for further information on each non-IFRS financial measure) for the three months ended March 31, 2025.

Jamieson Wellness Inc.
Segment Information
In thousands of Canadian dollars, except as otherwise noted

Jamieson Brands

	Three months ended March 31
	2025		2024		$ Change		% Change

Revenue	131,381		115,348		16,033		13.9	%

Gross profit	53,790		41,130		12,660		30.8	%
Labour relations costs ⁽¹⁾	-		3,253		(3,253	)	(100.0	%)
IT system implementation⁽²⁾	1,023		-		1,023		-
Normalized gross profit	54,813		44,383		10,430		23.5	%

Gross profit margin	40.9	%	35.7	%	-		5.2	%
Normalized gross profit margin	41.7	%	38.5	%	-		3.2	%

Share-based compensation⁽³⁾	2,087		1,749		338		19.3	%

Selling, general and administrative expenses	48,040		38,061		9,979		26.2	%
Donations⁽⁴⁾	(3,118	)	-		(3,118	)	(100.0	%)
IT system implementation⁽²⁾	(4,286	)	(2,980	)	(1,306	)	(43.8	%)
Legal and other	(25	)	(297	)	272		91.6	%
Labour relations costs ⁽¹⁾	-		(1,440	)	1,440		100.0	%
Normalized selling, general and administrative expenses	40,611		33,344		7,267		21.8	%

Earnings from operations	3,663		1,320		2,343		177.5	%
IT system implementation⁽²⁾	5,309		2,980		2,329		78.2	%
Labour relations costs ⁽¹⁾	-		4,693		(4,693	)	(100.0	%)
Donations ⁽⁴⁾	3,118		-		3,118		100.0	%
Legal and other	25		297		(272	)	(91.6	%)
Normalized earnings from operations	12,115		9,290		2,825		30.4	%

Operating margin	2.8	%	1.1	%	-		1.7	%
Normalized operating margin	9.2	%	8.1	%	-		1.1	%

Adjusted EBITDA	18,273		15,124		3,149		20.8	%
Adjusted EBITDA margin	13.9	%	13.1	%	-		0.8	%


Strategic Partners

	Three months ended March 31
	2025		2024		$ Change		% Change

Revenue	14,582		12,690		1,892		14.9	%

Gross profit	1,430		1,655		(225	)	(13.6	%)
IT system implementation⁽²⁾	226		-		226		100.0	%
Normalized gross profit	1,656		1,655		1		0.1	%

Gross profit margin	9.8	%	13.0	%	-		(3.2	%)
Normalized gross profit margin	11.4	%	13.0	%	-		(1.6	%)

Selling, general and administrative expenses	1,547		1,497		50		3.3	%

Earnings from operations	(117	)	158		(275	)	(174.1	%)
IT system implementation⁽²⁾	226		-		226		100.0	%
Normalized earnings from operations	109		158		(49	)	(31.0	%)

Operating margin	(0.8	%)	1.2	%	-		(2.0	%)
Normalized operating margin	0.7	%	1.2	%	-		(0.5	%)

Adjusted EBITDA	793		973		(180	)	(18.5	%)
Adjusted EBITDA margin	5.4	%	7.7	%	-		(2.2	%)

Reconciliation of Non-IFRS Financial Measures
In thousands of Canadian dollars

	Three months ended
	March 31
	2025		2024


*Net loss:*	(2,514	)	(3,719	)
Add:
Recovery of income taxes	(1,624	)	(1,124	)
Interest expense and other financing costs	4,908		4,873
Accretion on preferred shares	2,272		2,219
Depreciation of property, plant, and equipment	3,255		3,516
Amortization of intangible assets	1,500		1,384

Earnings before interest, taxes, depreciation, and amortization (EBITDA)	7,797		7,149
Share-based compensation⁽³⁾	2,087		1,749
Foreign exchange loss/(gain)	504		(771	)
Labour relations costs ⁽¹⁾	-		4,693
IT system implementation⁽²⁾	5,535		2,980
Donations⁽⁴⁾	3,118		-
Legal and other	25		297
Adjusted EBITDA	19,066		16,097

Recovery of income taxes	1,624		1,124
Interest expense and other financing costs	(4,908	)	(4,873	)
Depreciation of property, plant, and equipment	(3,255	)	(3,516	)
Amortization of intangible assets	(1,500	)	(1,384	)
Share-based compensation⁽³⁾	(1,965	)	(1,627	)
Tax deduction from vesting of certain share-based awards	(689	)	-
Tax effect of normalization adjustments	(2,425	)	(1,906	)
Adjusted net earnings	5,948		3,915


	Three months ended
	March 31
	2025		2024

Gross profit	55,220		42,785
Labour relations costs ⁽¹⁾	-		3,253
IT system implementation ⁽²⁾	1,249		-
Normalized gross profit	56,469		46,038
Normalized gross profit margin	38.7	%	36.0	%

Selling, general and administrative expenses	49,587		39,558
Donations⁽⁴⁾	(3,118	)	-
IT system implementation ⁽²⁾	(4,286	)	(2,980	)
Labour relations costs ⁽¹⁾	-		(1,440	)
Legal and other	(25	)	(297	)
Normalized selling, general and administrative expenses	42,158		34,841

Earnings from operations	3,546		1,478
IT system implementation ⁽²⁾	5,535		2,980
Labour relations costs ⁽¹⁾	-		4,693
Donations⁽⁴⁾	3,118		-
Legal and other	25		297
Normalized earnings from operations	12,224		9,448
Normalized operating margin	8.4	%	7.4	%

(1)		Prior year expenses are comprised of third party legal, security fees and unavoidable facility expenditures. All expenses are directly related to the facility closure and collective bargaining process with unionized employees at a manufacturing and warehousing facility in Windsor, Canada.

(2)		Mainly pertains to development and post implementation start-up costs associated with our IT system implementation to augment our system infrastructure. Unlike other system improvement projects with costs capitalized, due to its cloud-based nature, these system implementation costs are expensed accordingly.

(3)		Our share-based compensation expense pertains to our long-term incentive plan, with stock options, performance-based share units, time-based restricted share units, and deferred share units expenses, along with associated payroll taxes.

(4)		Include cash and in-kind donations to support communities adjacent to our Irvine, California facility impacted by the wildfires.

Reconciliation of Net Debt
In thousands of Canadian dollars

	As at March 31,		As at December 31,
	2025		2024

Long-term debt	295,000		308,285
Cash	(41,113	)	(44,787	)
Net debt	253,887		263,498