Jamieson Wellness (TSX:JWEL) is a Toronto-based company that manufactures, distributes, and markets sports nutrition products and supplements. The supplements market is geared up for big growth into the next decade, especially as developing nations begin to catch up to the craze.
Shares of Jamieson have climbed 14.9% in 2019 as of close on October 23. The stock is trading just off its 52-week high of $24.97.
The company is set to release its third quarte 2019 results after markets close on November 6. In the second quarter Jamieson reported an 8.6% year-over-year increase in revenue to $80.6 million. Adjusted net income rose 14.4% to $7.9 million.
Jamieson’s push into international markets has been a key driver for its growth in the first half of this year.
Revenue increased on the back of strong growth in domestic and international brand sales. Domestic Jamieson brand sales increased 11.8% and its international business posted 10.2% growth over the previous quarter.
The company has started building distribution in domestic retail channels in mainland China while also expanding its product registrations. It expects to establish a platform for distribution in the Chinese market in the back half of 2019, with 15-20 new products available by year end.
Shares of Jamieson currently possess a high price-to-earnings ratio of 31 and a price-to-book value of 3.7. However, its growing international footprint and continued strength in the domestic market has me optimistic about its prospects going forward. I love Jamieson as a long-term bet before the New Year.
