Jamieson Wellness (TSX:JWEL) is a Toronto-based company that develops, manufactures, distributes,
markets, and sells natural health products and supplements in Canada and around the world. Its shares
have dropped 7.2% in 2022 as of mid-afternoon trading on August 31. The stock is still up 4.7% in the
year-over-year period.
The natural health products and supplements market is geared up for strong growth in the years ahead.
Jamieson has managed to expand its international reach and has achieved impressive success in China.
Its continued international expansion should fuel strong growth for Jamieson in the 2020s and beyond.
Investors should be encouraged by its acquisition of Nutrawise Health & Beauty Corporation for
approximately $210 million. This provides Jamieson with a platform to further penetrate the United
States vitamin/mineral supplement (VMS) market, currently the largest in the world. The transaction is
expected to generate an immediate benefit to Jamieson’s revenues and adjusted EBITDA.
In Q2 2022, the company delivered revenue growth of 6.5% to $112 million. Meanwhile, adjusted
EBITDA climbed 9.5% year-over-year to $24.4 million. It reported adjusted net earnings of $13.4 million
or $0.32 per share – up 11% and 10%, respectively, from the previous year.
Shares of Jamieson Wellness currently possess a favourable price-to-earnings ratio of 28. Moreover, the
stock offers a quarterly dividend of $0.17 per share. That represents a modest 1.8% yield.
