Jamieson Wellness (JWEL) Q3 2024 earnings summary

Executive summary

• Consolidated Q3 2024 revenue reached $176.2 million, up 16.3% year-over-year, with 20% branded growth and record results in China driven by marketing and ecommerce investments.

• Launched a major integrated advertising campaign in Canada, reinforcing brand leadership and preparing for global expansion in 2025.

• International revenue grew 25%, supported by innovation and expanded distribution.

• Renewed environmental partnership, expanding kelp restoration and committing to new tree planting projects internationally.

Financial highlights

• Gross profit margin improved to 38.4% (up 460 bps year-over-year); normalized gross margin up 230–250 bps.

• Adjusted EBITDA increased to $33.9 million (up 6.4%), with margin at 19.3% (down from 21.0%).

• Adjusted net earnings for the quarter were $15.8 million, with adjusted diluted EPS at $0.37 (up 4.7%).

• Cash from operations was $24.2 million, a $38.2 million improvement from Q3 2023, driven by working capital inflow.

• Net debt stood at $292.8 million as of September 30, 2024.

Outlook and guidance

• 2024 consolidated revenue guidance narrowed to $725–$755 million, representing 7.2%–11.7% growth.

• Adjusted EBITDA expected at $139–$143 million (up to 3.6% growth); adjusted diluted EPS $1.57–$1.63 (up to 5.2% growth).

• Strategic Partners segment revenue forecasted at $105–$110 million, a 12%–16% decrease.

• Fiscal 2025 outlook maintained: low double-digit growth, adjusted EBITDA $155–$165 million, driven by volume and manufacturing efficiencies.

• Normalized SG&A projected to increase 25–30%.