Jamieson Wellness Inc (JWEL) experienced a substantial rise in sales in the first quarter of 2021 as customers continued to shop for products to improve their health.
Indeed, Jamieson’s revenue for 1Q 2021 came in at C$98.3 million, an increase of 16.3% from the revenue of C$84.5 million reported in 1Q 2020. The rise in revenue was attributed to the 8.7% growth in Jamieson Brands and 51.9% growth in Strategic Partners.
Meanwhile, adjusted EBITDA increased 11.1% to C$18.5 million in the first quarter of 2021. Net income for 1Q 2021 was C$6.1 million compared to C$8.0 million in 1Q 2020. Adjusted net income, which excludes all non-operating expenses and foreign exchange, increased 18.2% to C$1.4 million.
Jamieson’s President and CEO Mark Hornick said, “Branded Revenue grew by almost 9% led by strong growth in our international business and continued growth in our domestic branded business. While consumption in the quarter was not expected to match the initial demand surge accompanying the first wave of the pandemic, we continue to see very strong baseline demand from both new and existing consumers when comparing consumption to pre-pandemic levels. We remain focused on our long-term strategic objectives and investments required to continue to grow our domestic and international revenues while expanding our gross profit margins.”
For fiscal 2021, Jamieson continues to forecast revenues in a range of C$421 to C$438 million, representing annual growth of 4.3% to 8.6%. Adjusted diluted EPS are anticipated to be in a range of C$1.24 to C$1.32. (See Jamieson Wellness Inc stock analysis on TipRanks)
On Monday, Stifel Nicolaus Justin Keywood initiated coverage of JWEL with a Buy rating and a C$50.00 price target (28.8% upside potential).
Keywood stated that not only demand for vitamins is expected to persist after the pandemic, but Jamieson Wellness still expects to double its size within five to seven years. He believes the stock could climb to C$100 if the company meets its long-term goals of C$800 million in revenue. Jamieson has several avenues to achieve this: launching innovative new products, organic growth in Canada, along with expansion into the United States, China, and potential acquisitions.
Overall, JWEL scores a Strong Buy consensus rating among analysts based on 5 Buys and 1 Hold. The average analyst price target of C$44.50 implies a 14.7% upside potential from current levels.
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