Jamieson Wellness: A Resilient Consumer Health Champion with Global Upside
- marchesglobauxhec
- 6 days ago
- 6 min read
Intro
Jamieson Wellness stands as one of Canada’s most recognized health and wellness companies, offering vitamins, minerals, and supplements trusted by millions. Founded in 1922, the company has evolved into a global player, combining strong domestic leadership with rapid international expansion, particularly across China and the United States.
Investment thesis
We believe that Jamieson is pivoting towards higher margins, a greater number of sales, and stability in its use of capital, which makes it an interesting stock for investors seeking additional value.
Margin expansion is underway at Jamieson, primarily due to the rise in margins for the Brand segment and the decreasing contribution of the B2B segment. For example, the EBITDA margin for 2025 is expected to be around 19% because of the mix between the two segments. This margin expansion is also driven by premiumization and pricing in certain categories, in addition to improved operational efficiency expected in the near future.
Jamieson has also been growing incrementally, mainly because China is acting as the company’s growth engine. China is expected to see revenue growth of about 40% in 2025 roughly $128 million versus $91 million in 2024. This is largely due to strong in-market execution by the local team, effective influencer-led social commerce, and the expansion of points of sale. Therefore, the owned brands, which carry higher margins, are growing and improving the company’s operational leverage.
The company is also anchoring solid and stable revenues through its Canadian and American sales. In Canada, Jamieson’s core franchise provides a steady cash base, with revenue growth of around 8% for 2025. In fact, it serves as the anchor of the company, generating liquidity and financing global projects. In the U.S., the Youtheory brand is experiencing growth of around 10%, driven by greater product availability and expanded e-commerce distribution.
Company Overview
Headquartered in Toronto, Ontario, Jamieson (TSX: JWEL) is a Canadian manufacturer of natural health products, vitamins, minerals, and supplements that was founded in 1922. Jamieson is a key player in this industry, holding a leading position in the Canadian market while expanding internationally, mainly in China and the United States. In 2024, its revenues were approximately $734 million, and its products were available at more than 10,000 points of sale in Canada. The company’s strategy centers on growing its brands through international expansion particularly in China, while Canada and the U.S. provide cash generation and scale.
Jamieson owns several popular brands:
Jamieson – Canada’s flagship in VMS (vitamins, minerals, supplements)
Youtheory – U.S. brand specializing in collagen and functional nutrition
Progressive – Active-lifestyle nutrition
Iron Vegan – Plant-based performance nutrition
Jamieson operates brand-led platforms through two segments: its owned brands (Jamieson Brands) and its strategic partners (B2B).
The first segment, Jamieson Brands, is the largest part of the company, accounting for about 85% to 90% of annual revenue. It includes all branded VMS products sold under Jamieson, Youtheory, Smart Solutions, or Iron Vegan. These products are distributed across pharmacies, mass retailers, and e-commerce platforms. It is the firm’s main profit driver, benefiting from innovation and international expansion. China serves as the main growth engine, with sales up 71% year over year in Q2 2025, mainly due to the local team managing the brand and retail partnerships nationwide. In Canada and the U.S. (Youtheory), growth has stabilized in the low single digits, supported by strong retailer relationships in Canada and broader online distribution in the U.S.
The second segment, Strategic Partners, represents approximately 10% to 15% of annual revenue, with an estimated $18 million in sales in Q3 2025. This segment includes all contract development, manufacturing, and packaging services for third-party brands and retailers. Jamieson either manufactures for the third party or manages all the necessary information to create the required product. The main goal of this segment is to diversify revenue and optimize capacity. On the downside, it provides lower margins and greater volatility, which is why its contribution has been decreasing year after year.
Business Model & Strategic Positioning
Jamieson Wellness is a branded vitamin and supplement company expanding beyond its Canadian base into faster-growing international markets. International revenue now accounts for about one-third of total sales, led by China and Saudi Arabia.
In China, Jamieson’s partnership with DCP Capital has transformed execution through local management, direct distribution, and focused digital marketing on platforms such as Douyin and Tmall. This localization has driven over 60% revenue growth YoY and steady market-share gains in a category still underpenetrated compared with Western markets.
Saudi Arabia has also become a meaningful contributor following regulatory reforms that opened retail access to foreign wellness brands. Together, China and the Middle East now form the backbone of Jamieson’s international expansion, balancing a slower-growth Canadian base.
Product innovation continues to differentiate the brand. Jamieson has delivered an ~11% three-year revenue CAGR, well above the more mature industry’s ~3% pace, led by new launches such as Ashwagandha gummies, magnesium supplements, and GLP-1 companion products. These innovations appeal to younger consumers who are entering the vitamin category earlier than previous generations, broadening Jamieson’s customer base and sustaining above-industry growth.
The company operates an omni-channel model, with Costco representing roughly 45% of U.S. Youtheory sales and e-commerce continuing to expand through data-driven marketing and conversion optimization. This mix enhances reach, efficiency, and pricing control across channels.
M&A and Capital Allocation
Jamieson’s position in China is further supported by DCP Capital’s acquisition of Sun Art Retail Group, one of the country’s largest hypermarket chains. The partnership offers a new entry into physical retail that complements Jamieson’s digital presence.
With operations in the U.S. and China now integrated, management plans to pursue selective bolt-on acquisitions in mature markets such as the U.S. and Western Europe. The company targets profitable, omni-channel brands that strengthen category leadership while maintaining balance-sheet discipline. It retains a 3.5x net-debt-to-EBITDA ceiling and looks for targets exceeding $100 million in annual revenue.
Valuation
At C$35.79 per share, Jamieson Wellness trades near 19x 2025E earnings and about 11x EV/EBITDA, placing it at a discount to global health and wellness peers such as Church & Dwight and Nestlé Health Science, which command multiples closer to 13–14x EV/EBITDA. This relative undervaluation reflects both conservative investor sentiment toward China exposure and temporary U.S. softness as Youtheory laps difficult comps.
Consensus forecasts point to high-single-digit revenue growth in 2025 and EBITDA approaching C$160 million, driven by accelerating Chinese demand (+60% YoY in H1/25) and a rebound in U.S. e-commerce momentum. The company continues to deliver strong margins and maintains ample manufacturing capacity with minimal near-term capex needs. Most analyst targets cluster around C$42-45, implying 15-25% upside from current levels.
We view Jamieson as a structurally advantaged wellness platform, with exposure to durable global health trends, supported by a strong balance sheet and expanding international footprint. While near-term valuation depends on execution in China and normalization in the U.S., the medium-term outlook supports multiple expansion as global scale and mix improvements strengthen earnings quality.
Risks
Jamieson’s main risks stem from execution in its global expansion, particularly in China where regulatory shifts and consumer trends can change quickly. U.S. growth relies on Youtheory’s e-commerce traction amid intense competition and pricing pressure. Margin risk persists from input costs, FX volatility, and potential compliance or product quality issues. While the balance sheet is strong, the valuation reflects high expectations, leaving limited room for missteps across markets.
Thomas Boudreau, Antoine Dussault, Frédéric Lussier, Abdur Raoup Mohammed
Disclosures
This document has been produced by Marchés Globaux HEC (“MGH”) strictly for academic and informational use. The views, forecasts, and assessments presented are derived from publicly accessible sources that are believed to be accurate at the time of preparation; however, MGH has not conducted any independent verification of such data. Nothing in this document should be interpreted as investment advice, a solicitation, or a recommendation to buy, sell, or hold securities, nor as a valuation or professional opinion under Canadian or other applicable regulations.
MGH operates as a student-led initiative. Its authors are not registered financial advisors, legal experts, or accounting professionals, and the content herein is provided solely to foster discussion and learning. This material is intended exclusively for educational purposes and may not be copied, quoted, or distributed in whole or in part without prior written approval from MGH.