Jamieson Wellness (JWEL) Q2 2024 earnings summary

Executive summary

• Q2 2024 consolidated revenue reached $184.8 million, up 10.3% year-over-year, with branded business units growing 17.2% and China revenue up 106.6% due to strong marketing and promotions.

• Canada saw revenue growth of 10.1%, driven by consumer demand, new product innovations, and recovery from Q1 labor disruptions.

• Youtheory revenue increased 5.6% in Q2, with strong performance in the first half and new distribution channels.

• Announced an 11% increase in quarterly dividend to $0.21 per share.

• ESG materiality and risk assessment completed to guide future sustainability initiatives.

Financial highlights

• Gross profit rose $10.2 million to $65.0 million; gross margin increased 250 basis points to 35.2%.

• Adjusted EBITDA increased by $0.5 million to $31.6 million; margin at 17.1%.

• Adjusted net earnings were $14.7 million, up $1.0 million year-over-year; adjusted diluted EPS was $0.35.

• Cash from operations was $6.9 million, down from $11.7 million in Q2 2023, mainly due to working capital timing.

• Net debt stood at $309.9 million as of June 30, 2024.

Outlook and guidance

• Full-year 2024 revenue guidance maintained at $720–$760 million (6.5%–12.5% growth); 2025 outlook anticipates low double-digit growth.

• Jamieson Brands segment expected to grow 12%–18%, with China targeted for 60%–80% growth.

• Adjusted EBITDA guidance: $138–$144 million; adjusted EPS forecasted at $1.55–$1.65.

• Strategic Partners segment expected to decline 10%–20% due to contract transition, with new business shipping in Q4.

• Q3 consolidated revenue expected between $167–$177 million, up 10–17%.