Jamieson Wellness (TSE:JWEL) management said fiscal 2025 delivered another year of strong execution across core markets, led by outsized gains in China and continued growth in its branded portfolio. On the company’s fourth-quarter earnings call, President and CEO Mike Pilato and CFO Chris Snowden highlighted double-digit top-line growth, margin expansion, and a 2026 outlook that targets revenue above CAD 900 million as the company advances toward its longer-term goal of surpassing CAD 1 billion in sales.
Branded growth led by China, U.S., and international markets
Pilato said 2025 was “marked by consistent execution across our core markets,” with nearly 16% growth in the branded business and 12% consolidated revenue growth, supported by “meaningful gross margin expansion” and double-digit gains in Adjusted EBITDA and operating cash flow. He added that momentum continued into the fourth quarter, led by 17% growth in the Jamieson Brands segment.
During the Q&A session, Pilato said the company expects “more of it in 2026,” citing continued top-line and margin growth in China that is tracking to expectations shared at the company’s March 2025 investor day. He also said the company is seeing a “halo effect” from digital investments carrying into physical retail, with strong double-digit point-of-sale growth in retail and club channels alongside continued e-commerce strength.
In the U.S., Pilato said youtheory posted double-digit growth for the full year, supported by a new e-commerce go-to-market strategy and strong consumption in traditional channels. He highlighted innovation in categories such as stress and energy support and continued distribution gains across key retailers.
Canada, described as a mature market where Jamieson is already a leader, still grew nearly 6% in 2025, which Pilato attributed to consumer consumption supported by the company’s quality-focused marketing campaign and innovation. In response to an analyst question, he said Canadian category consumption continued to grow in the mid-single digits in both dollars and units, and Jamieson outpaced that by “a couple points.” He also pointed to strong performance in subcategories such as sleep, energy, stress, and immunity, calling out the company’s new magnesium product as a driver in a fast-growing category.
International revenue grew 24% for the year, with Pilato citing particularly notable performance in the Middle East, Europe, and the Caribbean. He said the company’s Canadian quality campaign has been launched globally, paired with “locally relevant innovation” to drive trial and engagement.
Q4 financial results: higher revenue and margins, with increased SG&A investment
Snowden said fourth-quarter consolidated revenue increased 13.4% to CAD 277.7 million, driven by Jamieson Brands growth and partially offset by expected declines in strategic partners. Jamieson Brands revenue rose 17.1% to CAD 237.4 million, while strategic partner revenue declined 4.4%.
By market in the quarter, Snowden reported:
- China: revenue up 43.9%, driven by performance marketing, innovation, and brand loyalty across digital platforms.
- U.S. (youtheory): revenue up 20.2%, supported by innovation and continued strength in e-commerce and traditional channels.
- Canada: revenue up 5.5%, reflecting strong consumption and innovation tied to quality-focused marketing campaigns.
- International: revenue up 39.2%, led by the Middle East.
Jamieson Brands gross profit increased 19.7% (CAD 18.6 million), and normalized gross margin improved 90 basis points to 47.6%, reflecting branded mix and scale in China. Consolidated gross profit rose CAD 18.5 million to CAD 118.7 million, and gross margin increased 180 basis points, driven by a higher proportion of Jamieson Brands and geographic mix benefits tied to China’s faster growth.
SG&A expenses increased 20% (CAD 9.8 million) in the quarter, reflecting performance marketing investments—particularly in China—variable compensation, and spending to support global infrastructure. Snowden also noted CAD 2.7 million of specific costs, largely legal and professional fees related to due diligence on a potential acquisition that ultimately “did not meet our very high standards for investment.”
Earnings from operations were essentially flat year over year, with higher revenue and gross profit offset by marketing investments and acquisition-related costs. On a normalized basis, earnings from operations increased 13.3% to CAD 60.4 million, with normalized operating margin of 21.8%, consistent with Q4 2024. Adjusted EBITDA rose 13.7% (CAD 8.1 million), and Adjusted EBITDA margin held steady at 24.3%.
Net earnings were CAD 37.6 million, while adjusted net earnings increased to CAD 38.5 million. Adjusted diluted EPS was CAD 0.90, increasing versus the prior year.
Cash flow, working capital, and shareholder returns
Jamieson generated CAD 31.9 million in operating cash flow in Q4, down from CAD 37.8 million a year earlier. Snowden said cash from operations before working capital was CAD 12.9 million higher than Q4 2024 due to stronger earnings, but this was more than offset by an CAD 18.8 million increase in working capital investment. He attributed the working capital build to “preliminary higher inventory levels” to support growth and mitigate risks related to tariffs and port congestion.
At year-end, the company reported CAD 126.6 million in cash and available operating facilities.
Snowden said the company continued returning capital to shareholders through buybacks and dividends. In Q4, Jamieson repurchased roughly 530,000 to 780,000 shares under its NCIB for CAD 18.1 million at an average price of CAD 34.05. For the full year, Jamieson repurchased almost 1.2 million shares for CAD 37.9 million at an average price of CAD 32.39. The company also paid approximately CAD 37.2 million in dividends in 2025.
Management announced a dividend of CAD 0.23 per share, declared February 26, 2026, totaling CAD 9.5 million, payable March 16 to shareholders of record on March 6.
2026 outlook: revenue above CAD 900 million and flat EBITDA margin
For 2026, Snowden guided to consolidated revenue of CAD 895 million to CAD 935 million, representing 9% to almost 14% growth. Jamieson Brands revenue is expected between CAD 790 million and CAD 820 million, implying 9% to 13% growth.
Regional growth expectations included:
- China: 20% to 30% revenue growth
- U.S.: 14% to 19% revenue growth (in U.S. dollars)
- Canada: 4% to 6% revenue growth
- International: 10% to 15% revenue growth (in U.S. dollars)
- Strategic partners: expected to return to growth, up 10% to 20%
On profitability, Snowden forecast Adjusted EBITDA of CAD 174 million to CAD 181 million (up 9% to 13.4%), with Adjusted EBITDA margin maintained at approximately 19.4%. In response to an analyst question about mix shifting toward faster-growing geographies, Snowden said the company expects margin growth across segments, but mix—particularly China’s faster growth and improving strategic partner performance—results in an overall EBITDA margin that is “roughly flat” year over year.
Jamieson also guided to adjusted diluted EPS of CAD 2.08 to CAD 2.21, representing 12.5% to 19.5% growth. Cash from operations before working capital is expected between CAD 120 million and CAD 130 million, while working capital is expected to increase CAD 25 million to CAD 35 million, reflecting organizational growth and tariff-related supply chain impacts. Capital expenditures are expected to be approximately CAD 20 million, including investments aligned with sustainability goals.
Strategy updates: innovation, SAP implementation, and M&A criteria
Pilato said the company’s foundation was strengthened in 2025 by the successful implementation of a new SAP system supporting its global Canadian headquarters and three manufacturing facilities. He reiterated that innovation remains central to growth, with a focus on need states such as immunity, sleep, stress, and energy, and emphasized the company’s ability to scale concepts across geographies.
On category demand, Pilato argued VMS is “not a discretionary category” and said it has continued to grow through the inflationary period. He also noted demographic tailwinds, including an aging population and younger consumers entering the category earlier.
Management also discussed M&A interest following disclosed due diligence costs. Pilato said the company is looking primarily in the U.S. for a “scaled quality brand,” with digital expertise and multi-channel participation. He said Jamieson is ideally looking for targets with at least CAD 100 million in revenue, while noting the company could consider smaller acquisitions if they bring digital expertise.
On GLP-1-related products at youtheory, Pilato said early results have been “encouraging” in certain areas, such as an online multivitamin product, but that the segment remains in “early days” and was expected to remain modest while growing in 2026. He added that, longer term, management sees broader GLP-1 adoption as a tailwind as consumers “step change their health” and engage more with the supplements category.
About Jamieson Wellness (TSE:JWEL)
Jamieson Wellness Inc is engaged in the manufacturing, distributing, and marketing of branded natural health products, including vitamins, minerals, and supplements. The company operates in two segments: The Jamieson brands and The Strategic Partners. The majority of its revenue comes from the Jamieson brand segment. Some of its brands are Jamieson, Progressive, Precision, and Iron Vegan. Geographically, most of its revenue is derived from the domestic market.
