Earnings call transcript: Jamieson Wellness Q2 2025 sees mixed results

Jamieson Wellness Inc. reported its financial results for the second quarter of 2025, showcasing a mixed performance. The company posted an earnings per share (EPS) of $0.40, surpassing the forecasted $0.3778, marking a positive earnings surprise of 5.88%. However, revenue fell short of expectations, coming in at $199.1 million compared to the forecast of $206.85 million, resulting in a negative revenue surprise of 3.74%. Following the earnings announcement, Jamieson Wellness’s stock experienced a modest increase of 0.69%, closing at $34.97. According to InvestingPro analysis, the company currently appears undervalued based on its Fair Value metrics, with an overall Financial Health score of "FAIR."

Key Takeaways

• Jamieson Wellness exceeded EPS expectations with a positive surprise of 5.88%.
• Revenue came in below forecasts, missing by 3.74%.
• Stock price increased slightly by 0.69% following the earnings release.
• The company reported strong growth in its Jamieson Brand segment with a 13.8% increase in revenue.
• New product launches and market expansion efforts continue to drive growth.

Company Performance

Jamieson Wellness demonstrated robust performance in its Jamieson Brand segment, which saw a revenue increase of 13.8% to $177 million. The company’s overall revenue grew by 7.7% year-over-year. Strategic market expansions in China, the US, Canada, and the Middle East contributed to this growth, along with successful new product launches in trending categories like ashwagandha and shilajit.

Financial Highlights

• Revenue: $199.1 million, up 7.7% year-over-year
• Earnings per share: $0.40, beating forecasts by 5.88%
• Gross profit margin: 40.6%, up 540 basis points
• Adjusted EBITDA: $35.1 million
• Cash from operations: $18.8 million
• Cash position: $133 million

Earnings vs. Forecast

Jamieson Wellness outperformed EPS expectations, delivering a 5.88% positive surprise. However, the company’s revenue fell short by 3.74%, reflecting challenges in meeting market demand or potential operational inefficiencies. This mixed performance contrasts with previous quarters where the company consistently met or exceeded both earnings and revenue forecasts.

Market Reaction

The immediate market reaction saw Jamieson Wellness’s stock rise by 0.69%, closing at $34.97. This increase reflects investor optimism regarding the company’s ability to surpass EPS expectations, despite the revenue miss. The stock is trading within its 52-week range of $27.9 to $38.2, indicating stability amidst market fluctuations. InvestingPro highlights that the company has raised its dividend for 8 consecutive years, demonstrating consistent shareholder returns. However, 2 analysts have recently revised their earnings expectations downward for the upcoming period.

Outlook & Guidance

Looking ahead, Jamieson Wellness projects full-year revenue for its Jamieson Brand to be between $695 million and $720 million, representing growth of 10.5% to 15.3%. The company anticipates significant revenue growth in China, ranging from 30% to 40%. For the third quarter, consolidated revenue is expected to be between $182 million and $192 million, with adjusted diluted EPS projected at $1.79 to $1.90.

Executive Commentary

CEO Mike Pallotta highlighted the company’s growth trajectory, stating, "We exited the 2025 with growth across every branded business unit and delivered a combined branded growth of 14%." He also emphasized the consistency in consumer behavior in the Canadian market, which remains a key area for the company.

Risks and Challenges

• Supply chain disruptions could impact product availability and revenue targets.
• Market saturation and increased competition in the health and wellness sector.
• Tariff-related delays affecting the Strategic Partners segment.
• Economic uncertainties in key markets like China and the US.

Q&A

During the earnings call, analysts questioned the performance of Jamieson Wellness’s e-commerce partnerships and the potential impact of tariffs on the Strategic Partners segment. The company also addressed inquiries about retail opportunities in China and the strategy for its GLP-one product line.

Full transcript - Jamieson Wellness Inc (JWEL) Q2 2025:

Andrew, Conference Call Moderator: Good afternoon, everyone. Welcome to the Jameson Wellness Conference Call to discuss the Financial Results for the Second Quarter twenty twenty five. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will be given at that time. Please be advised that the reproduction of this call in whole or in part is not permitted without written authorization from the company.

As a reminder, today’s call is being recorded. On the call today from management are Mike Palatto, President and Chief Executive Officer and Chris Snowden, Chief Financial Officer and Corporate Secretary. Before I turn the call over to Mr. Pallotta, please note that a press release covering the company’s second quarter financial results was issued this afternoon, and a copy of that press release can be found in the Investor Relations section on the company’s website. Please note that the prepared remarks, which will follow, contain forward looking statements, and management may make additional forward looking statements in response to your questions.

These statements do not guarantee future performance, and therefore, undue reliance should not be placed upon them. We refer you to all risk factors contained in Jamison’s press release issued this afternoon and in filings with the Canadian Securities Administrators for a more detailed discussion of the factors that could cause actual results to differ materially from those projections and any forward looking statements. The company undertakes no obligation to publicly correct or update the forward looking statements made during the presentation to reflect future events or circumstances, except as it may be required under the optical securities laws. Finally, we would like to remind listeners that the company may refer to certain non IFRS financial measures during this teleconference. A reconciliation of these non IFRS financial measures was included with the company’s press release issued earlier today.

Also, please note that unless otherwise stated, all figures discussed today are in Canadian dollars and are occasionally rounded to the nearest million. I will now turn the call over to Mr. Pallotta to get started. Please go ahead, sir.

Mike Pallotta, President and Chief Executive Officer, Jameson Wellness: Thank you, Andrew, and good afternoon, everyone. Thank you for taking the time to join us on the call today. I’ll start with an overview of our Q2 performance and highlights. Chris will then review the financials in detail before I conclude our prepared remarks and open the floor to questions. Q2 marked another solid quarter, reinforcing the continued strength of the health and wellness category and our leadership within it.

Branded revenue growth of nearly 14% reflects both sustained global demand for our trusted brands and our team’s continued execution of our strategic plan across all key markets. In China, we grew both dollar and volume share in each of our primary platforms throughout the quarter, as our marketing and social commerce activity continues to bring new consumers into the Jameson ecosystem. This investment halos the rest of the Jameson business as we saw remarkable results in our traditional cross border e commerce platforms, brick and mortar channels and specifically through our successful sixeighteen campaign, which averaged 73% growth over the prior year’s promotion. In The U. S, Youth Theory is gaining traction with growth of nearly 10% in the quarter.

Consumption grew in our traditional retail channels and was also particularly strong driven by our new e commerce partnership. Trending ingredients, including ashwagandha and shilajit were standouts in the quarter, driving demand for products in the growing stress support and energy categories. In Canada, consumer consumption remains strong, outpacing shipments as our Proudly Canadian platform continues to resonate with consumers. Our new product quality advertising campaign featuring our own team members working within our own facilities continued in Q2, with new creative in support of the launch of our new magnesium product executed in store and across traditional and social media channels. Magnesium has seen substantial consumer interest and demand, and Jameson has elevated the product offerings available with its last innovation that is now performing ahead of our expectations.

Internationally, we’re seeing continued momentum driven by innovation, particularly across The Middle East, as new product launches and successful heart and women’s health campaigns drove sell through in many markets. In our Strategic Partners segment, our team is focused on delivering new products and expanding our relationship with existing customers. Some confusion in the quarter around the tariff situation caused delays initially, but we work to understand business impact with our partners. Now clarified, we are on track for Q4 delivery on these opportunities. We exited the 2025 with growth across every branded business unit and delivered a combined branded growth of 14%, setting us up to meet our full year expectations.

As we head into the second half of the year, we remain focused on executing our innovation roadmap, expanding our global reach and driving operational excellence. Now let me turn the call over to Chris to discuss our financial performance in detail. Chris?

Chris Snowden, Chief Financial Officer and Corporate Secretary, Jameson Wellness: Thank you, Mike, and good afternoon, everyone. In the second quarter, consolidated revenue increased by 7.7% to $199,000,000 Growth in the quarter was driven by our Jameson brand segment, which exceeded expectations with growth of 13.8% increasing to $177,000,000 Each of our branded business units grew revenue in the second quarter as follows: China increased by 70.8%, primarily driven by a successful 06/18 promotional campaign, continued consumer loyalty behind our brand building investments and a heavier weight of influencer programs scheduled for the quarter. UTheory increased by 9.7, mainly due to strong consumption in our traditional channels, growth in e commerce driven by our new strategic partnership and the timing of shipments of our Q3 promotional programs. Canada increased revenue by 2%, of which 6.8% was driven by strong consumer consumption and pricing, partially offset by 4.8% impacted by strong Q2 shipments in the prior year after our first quarter labor disruption. International volumes increased by 9.6% driven by strong consumer growth in our core markets particularly in The Middle East.

Revenue in our Strategic Partners segment had decreased by $7,200,000 as expected impacted by the timing of customer ordering patterns for the existing business and new programs shifting later in the second half of the year. Consolidated gross profit increased by $15,800,000 in Q2, while normalized gross profit margin or gross profit increased by $14,200,000 mainly driven by higher brand revenues and increased margins, partially offset by lower strategic partner volumes. Consolidated gross profit margin increased by five forty basis points to 40.6%, while normalized consolidated gross profit margins increased by four sixty basis points. In the Jameson Brands segment, gross profit increased by $17,000,000 while normalized gross profit increased by $15,400,000 mainly driven by higher revenue and increased margins. Gross profit margin in the Jameson brands increased by four eighty basis points, while normalized gross profit increased by three seventy basis points to 44.1%, mainly driven by volume and efficiencies compared to shutdown related inefficiencies in the prior year and favorable channel mix in China in the current quarter.

Strategic Partner gross profit decreased by 1,200,000 and gross profit margin decreased by 110 basis points, mainly driven by lower volumes and production mix. SG and A expenses increased by 26.2% in the quarter. Excluding the impact of specified costs, SG and A expenses increased by 10,900,000 or 27.2% due to investments in China through e commerce marketing campaigns, including the weighting of influencer programs scheduled in the quarter and the timing of variable compensation. Specified costs of $4,700,000 in the quarter are mainly comprised of system development costs and post implementation start up costs associated with our SAP system implementation and other non recurring expenses primarily related to non operating legal costs. Operating income increased by $5,100,000 driven by higher gross profit and partially offset by our investment in SG and A.

On a normalized basis, operating income increased by $4,100,000 and adjusted EBITDA increased by $3,500,000 to $35,100,000 Adjusted net earnings was $17,300,000 or $2,600,000 higher than the second quarter of the previous year. A reconciliation of adjusted EBITDA and adjusted net earnings is provided in today’s release announcing our second quarter results. Turning to the balance sheet and cash flow. We generated cash from operations before working capital considerations of $18,800,000 an increase of $1,700,000 from the prior year. Cash used in working capital decreased by $2,900,000 mainly due to the timing of vendor payments, partially offset by higher accounts receivable from timing and increased inventories to support growth of our business.

In the second quarter, we repurchased for cancellation 96,420 common shares under our NCIB program for an aggregate consideration of $3,100,000 at an average price of $32.43 per share. In Q2, we distributed $8,800,000 in dividends and ended the quarter with almost $133,000,000 in cash and available operating lines. Based on the strength of our cash flow in the year, we have announced a dividend of $0.23 per common share or approximately $9,500,000 in aggregate, an increase of $02 per share or 9.5%. The dividend will be paid on 09/12/2025 to common shareholders of record at the close of business on 08/29/2025. Now turning to outlook.

We are maintaining our consolidated revenue and adjusted EBITDA outlook for fiscal twenty twenty five, while adjusting our Jameson brand segment outlook to reflect higher branded revenue in China due to our successful digital media programs and strong demand and lower strategic partner revenue to account for the onboard timing of new programs and partners. In fiscal twenty twenty five, we now expect the following: revenue in the Jameson brand segment to range between $695,000,000 to $720,000,000 representing 10.5% to 15.3% growth. Jameson China revenue is now expected to grow between 3040%, driven by market expansion, innovation and increased effectiveness and efficiency of our digital media programs driving trial and awareness. Revenue in Strategic Partners segment to range between 105,000,000 and $116,000,000 representing growth of up to 10%. Growth is expected to be driven by our new programs and higher volumes within our existing program portfolio.

Uncertainties surrounding U. S. Tariffs have delayed orders and the launches of new products into the fourth quarter with some new customers shifting volumes into 2026. In addition, adjusted diluted earnings per share is now expected to range between $1.79 and $1.9 or 11% to 18% growth, reflecting higher interest expense on the repurchase of shares under our NCI program and the timing of higher seasonal working capital investments. Our Q3 guidance reflects continued Jameson brand growth built upon our first half momentum.

In the third quarter, we expect the following: consolidated revenue of between $182,000,000 and $192,000,000 representing 3.329% growth with higher Jameson brand shipments slightly offset by expected declines within our Strategic Partners segment. Revenue in Jameson brand segment is expected to increase by 6.5% to 11.5% driven by consumer demand innovation and branded growth across all key markets. Revenue in strategic business in the strategic partner segment is expected to decrease between 1020% due to planned reductions within existing customers and the timing of commercialization of new business. Adjusted EBITDA to range between $35,000,000 and $37,000,000 Our 2025 guidance reflects the current prevailing trade environment between The United States, Canada and other countries. To date tariffs have not had a material impact on our overall financial performance as these costs have been mitigated through our flexible supply chain and operating efficiencies.

We recognized the trade environment is constantly changing and actual results may be impacted by future changes in global trade policies. A complete discussion of our outlook for the third quarter and full year fiscal twenty twenty five as well as factors impacting our expected performance is included in the outlook section of our MD and A filed this afternoon. And with that, I will turn the call back to Mike for closing comments. Mike?

Mike Pallotta, President and Chief Executive Officer, Jameson Wellness: Thank you, Chris, and thanks for your contributions as Corporate Secretary for Jamison since 2017 in addition to your role as CFO. I am pleased to announce that effective September 1, Chris will transition his Corporate Secretary duties to Tara Martin, our Senior Vice President and General Counsel, allowing Chris more time to focus on our strategic business development initiatives. I’d like to once again thank the entire team for their efforts this quarter as we continue to push forward with our purpose of inspiring better lives every day. These kinds of results do not happen without our entire Jameson team working extremely hard with passion, with purpose and with collaboration. They are an amazing group of professionals that I am proud to be a part of.

With that, we will now go to Q and A.

Andrew, Conference Call Moderator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Your you. First question is from Derek Lessard from TD Cowen. Please go ahead.

Derek Lessard, Analyst, TD Cowen: Yes. Good afternoon, Mike and Chris and congratulations on solid results all around.

Andrew, Conference Call Moderator: Thanks, Derek.

Derek Lessard, Analyst, TD Cowen: Just maybe a couple for me. I just wanted to zero in on the PR and UTheory. I think you guys said that you’re gaining traction through the traditional retail presence. Just you’ve been clear obviously that you’re doing really well in club and e commerce. This feels new, so just maybe add some meat to the bones here.

Mike Pallotta, President and Chief Executive Officer, Jameson Wellness: Yeah. I think what we’re saying in that portion is two things. One, we’ve continued to pick up some strategic distribution and sustainable distribution as we continue to bring out some new innovation and expand across some retail channels or customers. But we’ve also seen strong consumption. So you kind of have seen two things in there.

I think consumption has been pacing well. We talked about the pacing behind Ashwagandha and Shilajit, both ingredients that are really under are really driving growth under trending categories of energy and stress relief that we’ve talked about for some time. And we’re continuing to pick up some new distribution as well with some of our new innovations. So really proud of what the team’s been able to do down there in our traditional channels and into brick and mortar over the last quarter. And I really feel we’ve got some momentum building there.

Derek Lessard, Analyst, TD Cowen: Okay, sounds great. And I guess that the you highlighted the timing of shipments for Q3 promotion as a driver this quarter. Does that pull forward some of the shipments in Q3? So I guess, how should we be thinking about the growth cadence in Q3 and for you, Terry?

Chris Snowden, Chief Financial Officer and Corporate Secretary, Jameson Wellness: Yes. Your Q3 shipments will still be strong within guide. There’s no anomaly in the quarter there. Just maybe a little bit extra going.

Derek Lessard, Analyst, TD Cowen: Thanks, Chris. The philosophy of the Derek,

Mike Pallotta, President and Chief Executive Officer, Jameson Wellness: one thing point would to everyone in terms of timing. If you go back to last quarter, we talked about a year ago. Innovation in UTheory was front half weighted and this year it’s back half weighted. So we’re gonna see some strong innovation in the back half on UTheory.

Derek Lessard, Analyst, TD Cowen: Okay. And just maybe last one on on China. Pointed to brand loyalty growth. Just maybe talk about how you’re you’re measuring that and and what you’re seeing in in terms of the trend.

Mike Pallotta, President and Chief Executive Officer, Jameson Wellness: Yeah. So the way we measure it is as a few ways. So we look at what is happening on social commerce and in terms of KOLs that we’re leveraging. We’ve seen very strong growth obviously in those channels as we’ve invested there. But then we’ve seen very strong growth.

We’ve seen that halo quarter after quarter now to the more traditional channels. It’s really significant growth and also strong growth where we have brick and mortar distribution. The consumption coming out of those channels is high as well. We also measure brand equity scores. So we speak to consumers, we do our consumer research and we really started to see consumer equity and brand equity really start to grow behind our investment.

So we measure specifically what are we spending in marketing and in social commerce, and then we look at the other channels to see what’s happening, what’s haloing over there, and then we speak to consumers through our consumer research methodology to show strength. We also have started to measure some share metrics in China and have seen share growth across dollars and units in the quarter at a substantial rate above any of our foreign brand competitors.

Derek Lessard, Analyst, TD Cowen: Thanks for that and congrats again guys.

Andrew, Conference Call Moderator: Thanks Derek. Thank you. Your next question is from Nevan Yilkom from BMO Capital Markets. Please go ahead.

Nevan Yilkom, Analyst, BMO Capital Markets: Yes, thank you. Hi guys, you got Nevan on for Steve tonight.

Unidentified Speaker: Hey, Nevan.

Nevan Yilkom, Analyst, BMO Capital Markets: A couple of questions. Hi. So I guess just sticking with the China theme, can you provide some incremental detail on what’s driving the improved outlook? Just wondering if there’s been any change in your underlying assumptions for broader industry growth in the second half of the year?

Mike Pallotta, President and Chief Executive Officer, Jameson Wellness: No, I think we’re upping the guidance a bit in the second half, just mainly based on the momentum we have coming out of the first half, right? We’ve delivered a very strong plus, I think, 2% in the front half of the year in China. We expect some continued momentum. We are coming up against some real tough comps now in Q3 and Q4. Last year, we really started to accelerate in the back half.

We feel we’ve got good momentum. We feel like we’re at a point where we could call that China number up a bit for the second half. And from a market perspective, we’re continuing to see some growth in the China market, some solid growth in the China market, but we continue to outpace that substantially and we plan to keep doing that into the back half of the year.

Nevan Yilkom, Analyst, BMO Capital Markets: Got it. Thanks, Mike. And then switching gears to the domestic market here. Hoping you could provide some detail on the underlying 6.8% consumption growth in the quarter, how that would break down between volumes as well as pricing and then what you’re seeing in terms of consumer behavior?

Mike Pallotta, President and Chief Executive Officer, Jameson Wellness: Yes. So we continue to see consumer behavior be consistent here in Canada. We continue to see a continued shift to channels like club and e commerce, which we’ve talked about for a couple of years now, consumers continue to look for value. But we had a great quarter on a consumption basis. So we had mid single unit mid single percentage unit growth and high single digit dollar growth.

What’s contributing to that really is our new marketing campaign is doing very well. Our innovation is strong and the gap between units and dollars is a little bit of some pricing overlap. If you remember, we took pricing towards the end of Q1 in 2024 and a little bit of lapping in Q3 as it takes some time for customers to reflect that pricing in market. So a little bit of pricing, but good strong unit growth, mid single digits, outpacing category and we’re feeling pretty bullish on the back half of the year around our new advertising campaign and our innovation strategy.

Nevan Yilkom, Analyst, BMO Capital Markets: Great to hear. Thanks for taking my questions.

Mike Pallotta, President and Chief Executive Officer, Jameson Wellness: Thank you.

Andrew, Conference Call Moderator: Your next question is from Justin Keywood from Stifel. Please go ahead.

Justin Keywood, Analyst, Stifel: Hi, thanks for taking my call. Nice to see the continued solid execution. Just trying to understand some of the commentary around the strategic partner segment and I guess some variability around the tariffs. So are these U. S.

Customers where there’s some deferrals I guess in onboarding or how should we look at that?

Mike Pallotta, President and Chief Executive Officer, Jameson Wellness: Yes, that’s exactly the way I would speak to it. Justin, every time the headlines roar on tariffs, we’re onboarding new customers this year, we’re signing some new contracts. You just get delays in the system as those create noise and it takes time to circle back, talk about tariffs, talk about the impact, which at this point is really no impact under the Kuzma deal that we have with The United States. But it causes jitters in the marketplace and it’s just caused some onboarding to be delayed into Q4 as contracts got put on hold during some of those announcements and some of the noise in the system. So it’s exactly as you said, we’ll bring as much on as we can in the year.

We’ve adjusted our guide down a little bit and we’ll continue to push forward with these customers.

Justin Keywood, Analyst, Stifel: Is there some thought to perhaps replacing those customers with domestic opportunities?

Mike Pallotta, President and Chief Executive Officer, Jameson Wellness: Or we not 100%. We are looking at some Canadian opportunities and some global opportunities to work into our system over time. As we talked about at the beginning of the year, there’s a little bit of noise on tariffs and strategic partners. We’re fully confident in strategic partners moving forward. We just might get into some timing shifts based on announcements and then based on maybe cycling out U.

S. For international. But there’s a lot of irons in the fire. There’s a lot of opportunities out there. It’s just a timing game right now.

Justin Keywood, Analyst, Stifel: Okay. Great. That’s helpful. And then shifting to China, we noticed DCP Capital, your partner made a pretty substantial acquisition of Sun Art Retail Group, which as we understand it operates something like 500 stores. Is that an opportunity I assume it’s an opportunity for Jameson, but maybe just if you see it the same way and how that could play out in quarters ahead?

Mike Pallotta, President and Chief Executive Officer, Jameson Wellness: Yes. We do see it as a potential opportunity. They did make an announcement. I think that was in Q1 they made that announcement. I believe they’ve since have closed that deal and are in the middle of doing their work there.

We are in talks with them about what a vitamin opportunity could look like with that retailer. It’s not a retailer that traditionally has played in this category, but they would like to bring this category alive there and obviously with us. So there is some opportunity there. Any business that we see in the short term would be in our guide. We don’t expect it to be huge out of the gate.

It’s a bit of a test and learn with a new customer. But as it builds traction and if that test becomes successful, you’ll see it into our future expectations on the business.

Justin Keywood, Analyst, Stifel: Very helpful. Thanks for taking my questions.

Mike Pallotta, President and Chief Executive Officer, Jameson Wellness: You’re welcome.

Andrew, Conference Call Moderator: Your next question is from Zachary Evershed from National Bank Financial. Please go ahead.

Zachary Evershed, Analyst, National Bank Financial: Hey, congrats on the quarter and thanks for taking my questions.

Mike Pallotta, President and Chief Executive Officer, Jameson Wellness: Thank you. Zach, nice to hear from you.

Zachary Evershed, Analyst, National Bank Financial: So discussing the e commerce partnership, it sounds like it’s going well. Could you give us an update on how it’s performing relative to plan in terms of the speed of the rollout and lift that you’re hoping to get on the marketing?

Mike Pallotta, President and Chief Executive Officer, Jameson Wellness: Yes. We’re getting really solid double digit lifts on it. Our plan was built quarter by quarter building like this is something that doesn’t just flip on and all of a

Unidentified Speaker: sudden

Mike Pallotta, President and Chief Executive Officer, Jameson Wellness: you’re doubling and tripling your business. It builds quarter after quarter after quarter. And we’ve seen on plan increases in terms of consumption from Q1 to Q2. And we expect to see continued growth there in Q3 and Q4. So we’re feeling good about it.

Again, as we talk about a lot, we like to test and learn things. So we’re testing and learning with that partner on different promotions, different aspects of how they can drive volume and making sure that we’re pushing our dollars to the most efficient spend on the platform to drive the highest POS growth at the highest profit that we can. So a lot of maneuvering going on, testing and learning, but substantial growth in Q2 and looking forward to the back half.

Zachary Evershed, Analyst, National Bank Financial: Gotcha. Thanks. And then on the innovations in the Proudly Canadian platform, what is resonating and driving that domestic growth in addition to the magnesium category?

Mike Pallotta, President and Chief Executive Officer, Jameson Wellness: Yes. I mean, magnesium is where we have put a lot of focus on because it’s a growing category. We have a superior product that we brought to market and we’ve spent lot of our marketing is pointed at that product right now. So it definitely is the clear winner, and we think that we have a winner for the market long term, and it’s doing well. Really, if I think about growth in Canada, I think about it kind of in three pillars.

Our quality campaign, our new quality campaign is doing exceptionally well for us using our own employees, giving consumers a peek into facilities. I think that is driving a substantial chunk of the growth for us. I think number two would be some of the innovation we have in the market. And then number three, little bit of pickup on this proudly Canadian theme that we’re feeling here in Canada today.

Zachary Evershed, Analyst, National Bank Financial: That’s helpful. Thanks. I’ll turn it over.

Andrew, Conference Call Moderator: Thank you. Your next question is from Ryland Conrad from RBC Capital Markets. Please go ahead.

Unidentified Speaker: Hey, good afternoon guys. Thanks for taking my questions. Just to start off, I know it’s still early days, but is there any kind of incremental things that you could share on the initial traction with GLP-one? Is that expected to be more of a meaningful contributor in the back half?

Mike Pallotta, President and Chief Executive Officer, Jameson Wellness: Yes. I mean, our GLP-one products launched, I think, couple late Q4 last year and maybe the third one early Q1. As we’ve talked about, it’s kind of a put it in market and let’s see how it builds over time. It’s like anything in this category we talk about and that’s why we’ve never talked about it with any huge numbers for this year. You throw down in this industry or in this category, buns and singles on innovation and they turn into doubles, triples and home runs over time because you’re changing consumer behavior.

In this case, we’re actually entering a brand new category. I mean it’s consumers that are going down this new weight loss journey for the first time. So we’re seeing it continue to build. Any growth we see in it and anything we’ve seen in the front half and anything we see for it in the back half is built into our guidance that Chris shared. But we never expected this to be a rocket ship out of the gate.

We expect it to build over time and we’re seeing some consistent growth to our expectations.

Unidentified Speaker: Okay. That’s helpful. And then just kind of shifting gears to capital allocation. I believe you’re previously looking at maybe doing a bit or being more active on M and A later this year. But just curious if there’s been any kind of changes to your priorities just following the preferred share redemption by DCP?

Chris Snowden, Chief Financial Officer and Corporate Secretary, Jameson Wellness: No, we continue to be committed to growing both organically and through acquisition. The environment there’s actually reported to be some opportunities coming to market as we get to the 2025 and into 2026. We continue to have our requirements from an M and A perspective and we’ll evaluate opportunities as they come to our attention.

Unidentified Speaker: Perfect. Thanks guys.

Mike Pallotta, President and Chief Executive Officer, Jameson Wellness: Thank you. Ladies

Andrew, Conference Call Moderator: and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.

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