Jamieson Wellness Inc T.JWEL

Alternate Symbol(s): JWLLF

Consumer Defensive Household & Personal Products

Jamieson Wellness Inc. is a Canada-based company, which is principally engaged in the manufacturing, development, distribution, sales and marketing of branded and customer branded health products for humans, including vitamins, herbal and mineral nutritional supplements. The Company’s Jamieson brand is available in more than 45 countries globally. It also offers a variety of vitamins, minerals and supplements (VMS) products to consumers with its youtheory, Progressive, Smart Solutions, Iron Vegan and Precision brands. Its product portfolio is specifically curated to help maintain overall health with daily multivitamins for all age groups, letter vitamins, digestive, heart health and immune support formulas. It offers a variety of products to support women’s hormone health and beauty from within, and proteins and other sports nutrition products for those with active lifestyles. Its manufacturing facilities are located in Windsor, Ontario, Toronto, Ontario and Irvine, California.

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Jamieson Wellness Inc

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Post by retiredcfon May 05, 2023 8:24am

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Post# 35432406

TD

Jamieson Wellness Inc.

(JWEL-T) C$32.25

Kicking Off 2023 on a Strong Note Event

Recommendation: ACTION LIST BUY

Risk: MEDIUM

12-Month Target Price: C$50.00

12-Month Dividend (Est.): C$0.73

12-Month Total Return: 57.3%

Market Data (C$)

JWEL reported Q1/23 adj. EBITDA of $24.5mm, up ~17% y/y and above TD/ consensus estimates of $22.1mm/$22.6mm. Following results and conference call, we made only modest changes to our model.

Impact: POSITIVE

JWEL shares recovered only half of what they lost since the Q4/22 results, where 2023 EBITDA guidance missed expectations. These Q1/23 results and the surrounding transparency are much better. Consequently, we would expect the shares to begin closing the gap over the coming months.

youtheory exceeded expectations driven by strong consumption and eCommerce growth of >33%, albeit from a small base. Still, this channel is an important growth driver and appears to be making good initial progress.

Innovation should contribute meaningfully starting in Q2. Management said that a newly improved product, which was de-stocked in anticipation of the re- launch, is now in full production and has begun shipping. Also, three of the five previously delayed gummy innovations have started shipping and are expected to build over time beginning in health food and eCommerce channels.
Jamieson China revenue increased 37%, driven by strong consumer demand in the key cross-border eCommerce (CBEC) channel and the lifting of pandemic- related restrictions. We expect JWEL to leverage its new partnership with DCP Capital to navigate the regulatory landscape, as well as to leverage local market knowledge and relationships into channel access and brand growth and development. Management said that DCP has already started helping.
Overall, JWEL exceeded its Q1 revenue and EBITDA guidance ranges, but decided to maintain its 2023 guidance. We are not surprised in this environment to see companies reluctant to raise guidance after a Q1 beat considering how much of the year remains, particularly given economic uncertainties and in JWEL's case, monumental strategic initiatives underway.

TD Investment Conclusion

We argue that even modest success in the U.S. and China alone would be very meaningful to earnings and, in turn, could push the shares well north of our $50.00 target price over time.