Jamieson Wellness Q2 Profit Up 22%, Dividend Rises

Jamieson Wellness Inc. (JWEL), a manufacturer and marketer of sports nutrition products and specialty supplements, reported solid growth in profits and revenues in its second quarter statements. As a result, the company increased its fiscal 2021 guidance and its quarterly dividend.

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Revenue for Q2 2021 came in at C$110.6 million, an increase of 18.6% from the revenue of C$93.2 million reported in Q2 2020. The rise in revenue was driven by 10.9% growth in Jamieson Brands and 48.9% growth in Strategic Partners.

Meanwhile, adjusted EBITDA increased 17.6% to C$22.3 million in the second quarter of 2021. (See Jamieson Wellness Inc. stock charts on TipRanks)

Net income for Q2 2021 was C$11.5 million (C$0.28 per diluted share) compared to C$6.0 million (C$0.15 per diluted share) in Q2 2020. Adjusted net earnings increased 21.8% to C$12.0 million (C$0.29 per diluted share).

Jamieson president and CEO Mike Pilato said, “Our branded revenue grew by 11% in the quarter, as a result of continued demand from our expanded consumer base. Our tablet compression and packaging capacity expansion projects are on track and have allowed us to improve our domestic customer and international distributor inventories ahead of our third quarter seasonal demand and promotional calendar.

“Consumer data continues to indicate that health and wellness, which was a growing trend before the pandemic, has become firmly embedded in consumer behaviour for the long-term. We remain confident in our plans for continued growth, and as such, have increased the midpoint of our outlook for revenue, adjusted EBITDA and adjusted net earnings. We are pleased that this earnings growth further enables us to support our strategic priorities and has allowed us to increase our quarterly dividend.”

Now C$0.15 per common share, the dividend has been raised 20%.

For fiscal 2021, Jamieson now forecasts revenue in a range of $435 to $445 million, representing annual growth of 7.8% to 10.2%. Adjusted diluted EPS are expected to be in a range of C$1.27 to C$1.32.

Earlier this week, Stifel Nicolaus Justin Keywood reiterated a Buy rating on JWEL and a C$50 price target. This implies 46.6% upside potential.

Keywood said he sees above-average organic growth beyond 2021 with continued traction in international markets, innovation, and converting new consumers to additional SKUs.

Overall, JWEL scores a Strong Buy consensus rating among analysts based on three Buys and one Hold. The Jamieson Wellness average price target of C$45.54 implies 33.6% upside potential to current levels.