Jamieson Wellness Q2 2025 slides: China sales surge 70.8%, revenue up 7.7%

Introduction & Market Context

Jamieson Wellness Inc (TSX:JWEL) released its second quarter 2025 results on August 7, showing continued growth momentum with consolidated revenue reaching $199.1 million, a 7.7% increase compared to the same period last year. The company’s stock closed at $34.97, up 0.69% following the presentation, reflecting positive market reception to the results.

The health and wellness company maintained its growth trajectory from Q1 2025, when it reported a 14% year-over-year revenue increase to $146 million. While Q2’s growth rate moderated somewhat from the first quarter, the company’s performance in key markets, particularly China, demonstrated strong consumer demand for its products.

Quarterly Performance Highlights

Jamieson Wellness reported adjusted diluted earnings per share of $0.40 for Q2 2025, representing a 14.3% increase from $0.35 in the prior year period. Consolidated adjusted EBITDA grew by 11.2% to $35.1 million, with adjusted EBITDA margin expanding by 50 basis points to 17.6%.

As shown in the following consolidated results table, the company’s performance varied significantly across geographic segments:

The standout performer was China, where revenue surged 70.8% to $35.2 million, continuing the strong momentum seen in Q1 when the region grew over 50%. This exceptional growth was attributed to a highly successful "6/18" promotion that achieved 73% growth over the prior year, according to the company’s presentation.

Segment Analysis

The Jamieson Brands segment, which includes the company’s branded consumer products, posted revenue of $177.3 million, a robust 13.8% increase from Q2 2024. Within this segment, the company reported varying performance across regions:

• Canada revenue increased 2.0% to $81.6 million, driven by new product innovation and "Proudly Canadian" marketing campaigns
• U.S. (youtheory) revenue grew 9.7% to $48.8 million, with stress support and energy products contributing to increased consumption
• International markets (excluding China) saw 9.6% growth to $11.7 million, supported by new product launches and successful heart and women’s health campaigns

The segment’s detailed performance metrics show significant gross profit margin improvement:

In contrast, the Strategic Partners segment, which manufactures products for third-party brands, experienced a significant decline with revenue falling 24.9% to $21.8 million. The company attributed this decrease to customer ordering patterns rather than fundamental market issues.

Financial Position

Jamieson Wellness reported improved cash generation in the second quarter, with $11.4 million in cash from operations compared to $6.9 million in Q2 2024. Cash from operating activities before working capital considerations increased by $1.7 million to $18.8 million.

As of June 30, 2025, the company maintained a solid financial position with approximately $132.9 million in cash and available revolving and swingline facilities, balanced against net debt of $367.1 million. The company’s balance sheet appears well-positioned to support continued growth initiatives.

Forward Guidance

Jamieson Wellness maintained its full-year 2025 guidance, projecting total revenue between $800.0 million and $840.0 million, representing growth of 9.0% to 14.5%. The company expects continued strong performance in China, with projected growth of 30.0% to 40.0%, while anticipating more moderate growth in mature markets like Canada.

The following guidance chart illustrates the company’s expectations across all segments:

The company projects adjusted EBITDA margin to range between 19.0% and 19.5%, with adjusted diluted earnings per share expected to be between $1.79 and $1.90. These projections suggest continued margin expansion from the 17.6% adjusted EBITDA margin reported in Q2.

Notably, the Strategic Partners segment is projected to grow by up to 10.0% for the full year, despite its weak Q2 performance, indicating the company expects a significant rebound in the second half of 2025.

Strategic Initiatives

Jamieson’s presentation highlighted several successful strategic initiatives that contributed to Q2 results. New product innovation and the "Proudly Canadian" marketing campaign drove consumer consumption in Canada, while trending ingredients boosted youtheory consumption in the U.S. market.

The company’s strong performance in China demonstrates the effectiveness of its international expansion strategy, particularly its ability to leverage promotional events like the "6/18" shopping festival. The presentation featured images of Chinese influencers showcasing Jamieson products on livestreams, highlighting the company’s digital marketing approach in this crucial growth market.

With China continuing to outperform expectations and the company maintaining its full-year guidance despite some segment volatility, Jamieson Wellness appears well-positioned to deliver on its growth objectives for the remainder of 2025.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.