Jamieson Wellness Aktie

Good afternoon, ladies and gentlemen, and welcome to the Jamieson Wellness Inc. Annual General and Special Meeting of Shareholders. I would like to introduce Tim Penner, Chair of the Board of Directors. Mr. Penner, the floor is yours.

Good afternoon, and welcome to the Annual General and Special Meeting of Shareholders of Jamieson Wellness Inc., which I will refer to today as Jamieson or the company. My name is Tim Penner, and I am the Chair of the Board of Directors. I am pleased to preside over this meeting. On behalf of the Board, I would like to thank Mike Pilato, our senior leadership team and all of our employees for their hard work and commitment.

In 2025, Jamieson delivered strong financial performance, continued to execute its strategy with discipline and further strengthened its global foundation. Consumer demand for our trusted brands remained robust across markets, supported by meaningful innovation, expanded digital capabilities and investments that position the business well for long-term growth.

On behalf of the Board, I would also like to thank the shareholders attending this meeting and those who submitted their proxies in advance. I would also like to remind all those present that this is a meeting of the shareholders of Jamieson and that although other persons may be present, whom we are pleased to welcome as guests to the meeting, only shareholders or their proxies are entitled to participate in the business of the meeting. Joining me on the line for today's meeting are Mike Pilato, Jamieson's President and Chief Executive Officer; as well as Chris Snowden, Jamieson's Chief Financial Officer.

Jamieson has decided to hold its meeting in a virtual format in order to provide shareholders with easy access and an equal opportunity to attend and participate in the meeting. By conducting our meeting virtually, Jamieson aims to provide shareholders a safe and convenient opportunity to participate without incurring significant travel costs or being restricted by time constraints. A virtual meeting format also aligns with our sustainability strategy.

We will now commence with the formal part of the meeting. I now call the meeting to order. In accordance with bylaws of Jamieson, I will act as Chair of the meeting; and I will ask Chris Snowden to act as Secretary; and Emma McKenzie and Kareeshma Aliar of TSX Trust Company, Jamieson's registered transfer agent, to act as scrutineer to compute the votes of any polls taken at this meeting and to report thereon to me as Chair.

Registered holders of common shares and duly appointed proxyholders will have the opportunity to vote via electronic ballot for any ballot that comes before the meeting. Beneficial owners of common shares who have not appointed themselves as proxyholders are deemed to be attending the meeting as a guest and will not be entitled to vote.

Shareholders who have already voted by proxy do not need to vote again unless you wish to change your vote. Voting at the meeting using your control number will revoke any previously submitted proxy. You can click on the Vote button to vote, and you will only be permitted to vote while the polls are open.

Questions can be submitted throughout the meeting using the Ask a Question button on the left side of the page, and we encourage you to submit your questions as early as you can. Only registered shareholders or duly appointed proxyholders may submit questions, and all questions will be addressed during the question period at the end of the meeting, except for procedural matters or questions directly relating to the motions, which may be addressed during the meeting.

When asking a question, please indicate your name, the entity you represent, if any, and whether you are a registered shareholder or a duly appointed proxyholder. We will summarize each question and identify the person who asked it. Questions that are substantially similar may be grouped together.

In order to make the best use of our time today, certain individuals have been asked to move and second motions relating to the business to be conducted at this meeting. This is not intended to limit in any way, your right to participate in the meeting. Registered shareholders and duly appointed proxyholders who wish to make comments relating to these motions may do so after the motions have been seconded.

The Secretary has advised me that the notice calling the meeting, together with the accompanying management information circular, the consolidated financial statements for the years ended December 31, 2025 and 2024, together with the auditor's report thereon and the form of proxy were sent on April 14, 2026 to all intermediaries and registered shareholders of record as of March 30, 2026. TSX Trust Company has provided proof of delivery to shareholders as required of the notice of meeting and proxy relating to this meeting in accordance with the notice-and-access provisions under applicable securities laws.

Unless there is an objection, I will dispense with the reading of the notice of the meeting. I therefore declare that proper notice for this meeting has been given.

A quorum of shareholders is at least 2 holders of common shares present in person or by telephonic or electronic means and holding or representing by proxy, not less than 25% of the votes cast or entitled to be cast at the meeting. I have received the preliminary report on attendance from the scrutineer and have determined that a quorum is present. I adopt this report, and as notice has been served in accordance with the Ontario Business Corporations Act and the bylaws, I declare this meeting to be regularly called and properly constituted for the transaction of business.

On behalf of the Board, I thank those shareholders who have chosen to attend the meeting today, and I thank those who have submitted their proxies in advance. Voting is now open on all resolutions.

The first item of business is the presentation and consideration of Jamieson's financial statements for the year ended December 31, 2025, together with the auditor's report thereon. The financial statements, together with the auditor's report thereon, were made available to all shareholders of Jamieson by mail or electronically in accordance with the notice-and-access provisions. I would ask that the Secretary attach the financial statements and auditor's report as a schedule to the minutes of this meeting.

Shareholders do not have to take any action regarding the financial statements. We would be pleased to receive any questions you may have regarding the financial statements during the question period later in the meeting. We will now move on to the next item of business.

We will now proceed with the election of directors. Pursuant to Jamieson's articles, there can be, at any time, a minimum of 3 and a maximum of 10 directors of Jamieson. Jamieson currently has 9 directors whose term of office will expire at the end of the meeting. As disclosed in Jamieson's management information circular, Jamieson will nominate the following 9 director nominees for election at this meeting, with the management information circular setting out the particulars of the nominee directors put forth by Jamieson. They are: Heather Allen; Dr. Louis Aronne; Tania Clarke; Diane Nyisztor; Michael Pilato; myself, Timothy Penner; Francois Vimard; Gayle Tait; and Mei Ye.

I will now nominate the directors. I nominate each of the persons whose name appears in the management information circular under the heading Election of Directors to be a director of Jamieson until the close of the next Annual Meeting of Shareholders or until their successors are elected or appointed.

I am advised that each of the nominees has consented in writing to act as a Director of Jamieson. May I have a motion and someone to second a resolution electing those nominated as directors of Jamieson?

Mr. Chairman, my name is Steve Pirak, and I'm a shareholder. I move that the persons who have been nominated for election as directors be elected as directors of Jamieson for the ensuing year or until their successors are elected or appointed.

My name is Katie Thomas, and I am a shareholder. I second the motion.

You have heard the motion duly made and seconded. As no additional individuals have been nominated for election as directors at the meeting in accordance with Jamieson's bylaw #2, and therefore, no additional directors may be nominated from the floor, I declare nominations closed. I further declare the motion to be carried and that the following 9 individuals have been nominated for election as directors of Jamieson for the ensuing year or until their successors are elected or appointed: Heather Allen; Dr. Louis Aronne; Tania Clarke; Diane Nyisztor; Michael Pilato; Timothy Penner; Francois Vimard; Gayle Tait; and Mei Ye.

As you know, Jamieson allows for the election of directors on an individual basis. According to our majority voting policy, any nominee who receives a greater number of votes withheld than votes for cast with respect to his or her election by the shareholders in an uncontested election of directors will tender his or her resignation promptly to the Governance, Compensation and Nominating Committee, which will recommend to the Board whether or not to accept such resignation. Unless there are any questions, I will move to the next item of business.

The next item of business is the appointment of auditors for the ensuing year and the authorization of the directors to fix their remuneration. The directors, on the recommendation of the Audit Committee, proposed that Ernst & Young LLP be reappointed as auditors of the company until the next Annual Meeting of Shareholders or until their successor is duly appointed and that the directors be authorized to fix their remuneration. May I have a motion, please?

Mr. Chairman, my name is Steve Pirak, and I am a shareholder. I move that Ernst & Young LLP, Chartered Accountants, be reappointed auditors of Jamieson to hold office until the close of the next Annual Meeting of Shareholders or until their successors are duly appointed at such remuneration as may be fixed by the directors and the directors are authorized to fix such remuneration.

My name is Katie Thomas, and I am a shareholder. I second the motion.

You have heard the motion duly made and seconded. Unless there are any questions, I will move to the next item of business.

The next item of business is to consider an ordinary resolution approving, ratifying and confirming the adoption of Jamieson's fifth amended and restated long-term incentive plan and the unallocated options, rights and other entitlements thereunder. The details of this resolution are set out in Schedule A to the management information circular. May I have a motion, please?

Mr. Chairman, my name is Steve Pirak, and I'm a shareholder. I move that the long-term incentive plan resolution set out in Schedule A to Jamieson's management information circular be approved.

My name is Katie Thomas, and I am a shareholder. I second the motion.

You have heard the motion duly made and seconded. Unless there are any questions, I will move to the next item of business.

The next item of business is to consider an ordinary resolution approving, ratifying and confirming the unallocated options, rights and other entitlements under Jamieson's employee share purchase plan. The details of this resolution are set out in Schedule B of the Management Information Circular. May I have a motion, please?

Mr. Chairman, my name is Steve Pirak, and I'm a shareholder. I move that the employee share purchase plan set out in Schedule B to Jamieson's management information circular be approved.

My name is Katie Thomas, and I'm a shareholder. I second the motion.

You have heard the motion duly made and seconded. Unless there are any questions, I will move to the next item of business.

The next item of business is to consider an advisory resolution approving Jamieson's approach to executive compensation. The details of this resolution are set out in Schedule C of the management information circular.

Each year, the Board offers shareholders the opportunity to cast at each Annual General Shareholder Meeting, an advisory vote on Jamieson's approach to executive compensation. As this is an advisory vote, the Board will not be bound by the results of the vote. However, the Board will take the results of the vote into account together with feedback received from shareholders when considering its approach to executive compensation in the future. The company recommends approval of this resolution. May I have a motion on this matter?

Mr. Chairman, my name is Steve Pirak, and I am a shareholder. I move that the advisory say on pay resolution set out in Schedule C to the Jamieson management information circular dated March 20, 2026, be approved.

My name is Katie Thomas, and I am a shareholder. I second the motion.

You have heard the motion duly made and seconded. Unless there are any questions, I will move on to the voting process.

As I mentioned earlier, the balloting is open to registered holders and appointed proxyholders on each item of business previously noted. Shareholders who have already voted by proxy do not need to vote again unless you wish to change your vote. If you have not already voted online or submitted a proxy, please complete your electronic ballot now.

Please register your votes by clicking the Vote button and selecting the For or Withhold buttons next to the names of each proposed director and next to the resolution with respect to the reappointment of Ernst & Young LLP as Jamieson's auditors. Please select the For or Against buttons next to the resolution with respect to the long-term incentive plan resolution, the employee share purchase plan resolution and the advisory vote on Jamieson's approach to executive compensation. Ruth Winker, Vice President of Corporate Affairs and Investor Relations of Jamieson, will confirm for us when the polls have closed.

[Voting]

The polls are now closed.

I have been advised by the scrutineer that the ballots and proxies deposited for the meeting have now been voted and that each of the resolutions have been carried, with the effect that: each of the 9 nominees has been elected as a director of Jamieson to serve until the next Annual Meeting of Shareholders or until their successors are elected or appointed; the appointment of Ernst & Young LLP as auditors of Jamieson has been approved, and the Board of Directors has been authorized to fix their remuneration; the long-term incentive plan resolution has been approved; the employee share purchase plan resolution has been approved; and the advisory vote on approach to executive compensation has been approved. We will file a report setting out the final voting results on SEDAR+ following this meeting.

The formal items of business as set out in the notice of meeting have now been dealt with. If there is no further business, may I have a motion for the termination of the formal portion of the meeting?

Mr. Chairman, my name is Steve Pirak, and I am a shareholder. I so move.

My name is Katie Thomas, and I am a shareholder. I second the motion.

I declare this motion to be carried. This concludes the formal portion of today's meeting.

I will now open the floor for any questions. I ask that all attendees who would like to ask a question click on the Ask a Question button on the virtual interface to do so. For each question we answer, we will summarize the question and read out loud the name of the person who asked such questions, and if applicable, the entity such person represents. Questions which were already answered or that are redundant or repetitive...

[Technical Difficulty]

Okay. It seems we have no questions. We would like to thank you for attending the 2026 Annual General and Special Meeting of Shareholders of Jamieson Wellness, Inc. and for your continued support of Jamieson.

Thank you for attending today's meeting. You may now disconnect.

Good afternoon, everyone. Welcome to the Jamieson Wellness conference call to discuss the financial results for the first quarter of 2026. [Operator Instructions]. 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 Pilato, President and Chief Executive Officer; and Chris Snowden, Chief Financial Officer. Before I turn the call over to Mr. Pilato, please note that a press release covering the company's first quarter financial results was issued this afternoon, and a copy of that press release can be found in the Investor Relations section of 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 Jamieson'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 applicable securities laws. Finally, we would like to remind listeners that the company may refer to certain non-IFRS financial measures during this teleconference.

Our 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. Pilato to get started. Please go ahead, sir.

Thank you, Sergio, and good afternoon, everyone. Thanks for joining the call to discuss our first quarter 2026 results. I'll begin with some comments on our Q1 performance, our key markets and our strategic growth initiatives. Then Chris will provide a detailed review of the financials and outlook before we open the call for questions. Q1 was another impressive quarter for Jamieson Wellness with branded revenue growth of almost 16%, reflecting continued momentum across each of our key markets. Consolidated revenue also grew just over 16% and adjusted EBITDA grew by nearly 18%.

The team delivered a strong start to the year. We drove growth across every business unit. The consumer continued to engage with our brands and in-market innovation is performing in line with our expectations. The momentum we've created is poised to carry into the balance of the year. And just as important, we're continuing to balance that growth with disciplined investment, consistent with the margin and cash flow framework we've laid out. Let me touch on how we performed across each of our markets. In China, revenue grew more than 55% on a constant currency basis in the quarter, reflecting increased consumer demand and disciplined execution by the team.

We continue to see our baseline brand health improve and conversion to repeat purchasers increase. Locally, relevant innovation and performance marketing, including a strong Women's Day promotional campaign, supported growth in what is typically a lower promotional quarter between our major June and 11/11 events. Overall, the flywheel we've been building from awareness to trial and trial to regular buyer continues to increase as intended. Moving to the U.S. As expected, we grew revenue almost 9% on a constant currency basis in the quarter, reflecting continued strength in e-commerce, and we're pleased with what we're seeing in our traditional channels as well, where we're continuing to see demand for our core hero products.

Our e-commerce partnership continues to deliver to plan with consistent quarter-over-quarter double-digit consumption gains, exactly as we laid out a year ago. We're excited about the trajectory of our U.S. business and youtheory's position in the market as the underlying positive trends continue. In Canada, revenue increased 4% in the quarter, lapping a very strong year ago Q1 of double-digit growth in our home market, driven by the continued success of our quality-focused marketing campaign and strong innovation, including our new magnesium product.

Our international business grew just over 20% in the quarter, led by continued strong consumption and solid execution across our priority markets. Underlying consumer demand remains healthy and what continues to work for us internationally is locally relevant innovation paired with continued distribution gains, a scalable model as we lean further into the markets where our brand is most resonating.

As we move through Q2, we're reaffirming our full year 2026 outlook, which Chris will walk you through in a moment. The drivers we've built our plan around are working. Our brands are gaining momentum across every major market, and the team is executing well. With that, I'll turn it over to Chris to walk through the financials in more detail.

Thank you, Mike, and good afternoon, everyone. In the first quarter, consolidated revenue increased 16.3% to $169.8 million, driven by strong growth in both Jamieson Brands and strategic partners. Jamieson Brands revenue increased by 15.6% to almost $152 million with growth across each of our key markets. China revenue increased 55% on a constant currency basis, driven by performance marketing, innovation and expanding brand loyalty across our major digital platforms. Our U.S. business increased 3.7% as expected or almost 9% on a constant currency basis, reflecting strong consumption across both our e-commerce and traditional retail channels as well as the timing of innovation shipments.

Canada revenue increased by 4%, driven by continued consumer consumption, supported by our quality-focused marketing campaign and innovation. International revenue increased almost 21%, led by strong performance in our core markets and continued distribution gains. Strategic Partner revenue increased over 22% to almost $18 million, reflecting consumer order patterns and the shipment of new business and programs secured in fiscal 2025.

In the quarter, consolidated gross profit increased by almost $14 million to $69 million, driven by higher revenue and margin growth across both Jamieson Brands and strategic partners segments. Consolidated gross profit margin increased by 290 basis points, reflecting a higher proportion of growth in Jamieson Brands and a favorable geographic mix as our China business continued to scale.

Within Jamieson Brands, normalized gross margin increased by 220 basis points to almost 44%, driven primarily by geographic mix. In Strategic Partners, normalized gross margin increased by 240 basis points, reflecting customer and product mix as well as higher facility utilization. SG&A expenses increased by 6% in the quarter, reflecting investments in performance marketing, particularly in China, variable compensation and ongoing investments to support our global infrastructure.

Specified costs were $900,000 in the quarter and were primarily related to IT project and other nonoperating items. As noted on the last call, we expect specified costs to be significantly lower in 2026 than in 2025 as we have cycled against our primary SAP implementation costs in Canada. On a normalized basis, earnings from operations increased by 23% to $15 million, and adjusted EBITDA increased by 17.6% or $3.4 million to over $22 million. Adjusted EBITDA margin was 13.2%, relatively consistent with the prior year.

While we continue to see margin progress within each of our segments, this was offset at the consolidated level by the proportion of strategic partner growth. Net earnings were almost $10 million for the quarter and adjusted net earnings increased to $7.4 million. Adjusted diluted earnings per share were $0.17, up over a year. In the quarter, cash flow used in operating activities was $5.8 million compared to $31.6 million generated in the prior year. Cash from operating activities before working capital consideration was nearly $8 million higher year-over-year, reflecting strong underlying earnings.

Cash invested in working capital of $45.3 million. We made a deliberate decision to invest in inventory to support improved service levels, drive operational efficiency and mitigate tariff and supply chain risks. We expect inventory and working capital to normalize throughout our second and third quarters. At the quarter end, we had almost $94 million in cash and available operating facilities. During the quarter, 188,762 shares that were purchased in 2025 under our automatic share repurchase plan were settled. and we also purchased and canceled an additional 11,744 shares under our NCIB.

Today, we announced a quarterly dividend of $0.23 per common share, totaling approximately $9.5 million, payable on June 15, 2026, to shareholders of record as of June 1, 2026. Turning to our outlook. We are reaffirming our full year 2026 consolidated guidance. This includes consolidated revenues of $895 million to $935 million, consolidated adjusted EBITDA of $174 million to $181 million and adjusted earnings -- adjusted diluted earnings per share of $2.08 to $2.21. We're updating revenue guidance for our Jamieson Brands and Strategic Partners segments to reflect the increasing momentum in China and the full year impact of new programs, new customers and order timing from existing Strategic Partner customers.

In Jamieson Brands, we now expect revenue to increase between 9.4% and 13.6% to approximately $795 million to $825 million, updated from our previous range of 8.7% to 12.9% growth. In Strategic Partners, we now expect growth of between 5% and 15%, updated from our previous range of 10% to 20% growth. For the second quarter of 2026, we expect consolidated revenue to range between approximately $220 million and $228 million. Jamieson Brands revenue is expected to increase between 13% and 17%, and Strategic Partners revenue is expected to decline by up to 10% due to timing of our customer programs.

Adjusted EBITDA for the quarter is expected to range between $36 million and $38.5 million. Overall, our outlook remains consistent with the framework we outlined previously. A more complete discussion of our outlook for the second quarter and the full year 2026 is included in the outlook section of our MD&A filed this afternoon. With that, I'll turn the call back to Mike for comments.

Thanks, Chris. When we wrapped up 2025, I spoke about consistency of execution being essential for another successful year, and Q1 is a prime example of that. We delivered growth across all key markets, invested behind our strategic priorities and maintained discipline on margins and capital, positioning us well for the balance of the year and beyond. The drivers beyond this category are as strong as ever. Older consumers are engaging more deeply, younger consumers are coming in earlier and people are taking a proactive approach to their health globally. These are long-term durable trends, and the category has proven its resilience across a wide range of macro environments.

We remain confident in our ability to deliver consistent branded revenue growth, margin expansion and strong cash generation over the long term. None of this, of course, happens without our people. Their commitment to our purpose of inspiring better lives every day is what drives this business forward. Thank you for joining us today and for your continued support of Jamieson Wellness. With that, we will open the line for questions.

[Operator Instructions] Your first question comes from Cheryl Zhang from TD Cowen.

Congrats on a great quarter. So my first question is on China, a very strong performance there. I'm curious if you can elaborate on the performance by different channels and if there's any metrics that you can share around improvements in repeat purchase and trial conversion?

Yes. We did last quarter share some trial conversion numbers. We continue to see increases there. We're not going to share it every quarter, but we'll share it from time to time. We did see, though, across both e-commerce channels and brick-and-mortar channels, strong double-digit growth. We did see some really good brick-and-mortar growth from a consumption perspective in the quarter as we did in Q4. We saw it again in Q1. But of course, e-commerce continues to grow double digits as well, and it was pretty broad-based across many platforms, not just one or two, pretty much all of them.

Okay. That's great to hear. And then just on Canada, can you comment on the POS sales and volume trends and if there's any changes in consumption behavior that you may call out?

Yes. We outpaced market growth with 4% growth. The category was a little bit below that. Units and dollars were growing kind of in sync, not much variance between them. We saw really no change in consumer behavior. The one thing we did see was just a little bit of a softer immunity season in Q4. The way immunity season -- cold and flu season split this year was a little different. Last year, we had a cold and flu season that was not as broad-based, but was more severe. This year, it was very broad-based, but not as severe. So we saw a stronger Q4 and a little bit of softening in cold and flu in Q1 than prior year.

But over the balance of both quarters, they came in within 1% of each other. So got a little bit of timing on immunity.

Your next question comes from Nevan Yochim from BMO Capital Markets.

Hoping we can start on the U.S., a solid quarter for growth there. Are you able to touch on the strength of your U.S. consumer? Are you noticing any change in their consumption patterns given some of the geopolitical noise that we've been hearing on the news? And then if you're able to discuss just how consumptions trended throughout the quarter and into Q2?

Yes. We're not seeing any major shifts at this point, Nevan. We continue to monitor it. We continue to see strong growth on e-commerce as we referred to over the last few quarters. We've gotten deeper into e-commerce as we see that as a big opportunity for us. We continue to see demand from our core products across all channels. So no major shifts. We're not going to get into Q2 today, but no major shifts that we've seen so far in the year. We feel very confident in our guide for the year and very optimistic about what's happening in the U.S., both in general in terms of following global consumer health trends with consumers continuing to look for proactive health options, but also for our business and where it's going from an innovation, distribution and e-com perspective.

And then just switching gears to China with revenue growth tracking well above prior expectations. Can you just provide an update on where margins are tracking relative to the plan you set out at the investor day? Could you achieve your margin goals earlier than previously anticipated?

Yes. So we did adjust our full year guidance on revenue for China a little bit exiting the quarter, recognizing the performance in Q1. From a margin perspective, if you reconcile that back to our investor day and our investor day margin expansion plans, we're actually about a year ahead of those plans today. We're into double-digit margin -- EBITDA margin in China and are very happy with the progress the team has made.

Your next question comes from Ty Collin from CIBC.

Maybe just to start, I appreciate the comments you made around the consumer and it sounds like trends were mostly stable in Q1, but we have heard some companies talking about some trade down behavior. So I am curious whether you've seen any of that within your category to start Q2. But also curious how you think about the impact of consumers migrating to more discount retail channels and how your presence there compares to maybe some more mainstream channels.

Yes. We have not seen any major trade-down on the year. We've outpaced market in all of our key markets. So we haven't even seen share declines. We're growing share in all the major markets. So -- that was good to see. We've talked about this in various quarters, like the consumer in times like this in our category might shift channels looking for value and we continue to see consumers searching for value.

For us though, we play strong in the discount channels. We've actually led the growth in the discount channels across Canada. But we are kind of margin agnostic. We build our pricing and our trade models to make significant -- or I should say, similar margin across the board, across all channels. Really, when you get into conventional and discount banners in that side of the business, that's really the pricing strategy of the retailer and how they leverage trade that we invest behind the business. whether they invest it for a high low pricing scenario or they invest it for an everyday low price scenario.

So we have strong position in discount. We'll continue to expand as discount grows, and we continue to focus on selling our products where the consumer is and where they're looking to buy our products.

That's helpful. And shifting gears just to M&A. Just want to get a bit of an update around that process, how you're thinking about valuation. And I'm curious how you would say valuation expectations in the U.S. have evolved since you acquired youtheory back in 2022. Is that sort of multiple a good starting point to think about for your next acquisition?

So we continue to be very focused on opportunities as they come to market. There are a number of founder-led organizations that came to market in 2025 that did not transact because multiple expectations were higher with lower multiples in our industry this year. I think some of those expectations have tempered, and we'll see when those companies come back to the market. We certainly are continuing to be interested in transacting with the U.S. being our primary geography of focus. And from a multiple perspective, we always want to buy something that is below our trading multiple. So that would be the upper limit. If it's a scaled asset, obviously, if there's something smaller, there's opportunity to go a little bit higher, but we would typically not buy anything beyond where we're trading at.

The one thing I would just add to that, Ty, we talked about M&A, I put this in there. We're in a great position in that we're not desperate to do an acquisition. We would like to do an acquisition to accelerate our growth, but we have a lot of organic growth in front of us. We're investing behind the business. It's strengthening every month and every quarter and every year. We feel really good about our organic growth opportunities. We would like to do an acquisition. We'll do it if it's the right brand at the right price, the right multiple. It meets all of our needs and hits all of our hurdles. We'll walk through that door.

But we're not desperate for it. And it's a really nice position to be in, and I don't -- we don't take that for granted.

And if I could just sneak one more in. I'm curious what sort of impact you're seeing, if any, at this point from the Iran war either on the cost side of your business or in some of your Middle Eastern markets at this point?

We're not really seeing any impact right now. Our Middle Eastern business delivered in Q1. Our partners there continue to drive the business forward. From a cost perspective, logistics and resin and the things that you would think would impact the business is a very small part of our business. We ship very small bottles, light bottles around the world. Any impact at this point that we see throughout the year is already built into the guide.

It's within our guidance range, and we feel pretty comfortable with where we are right now.

Your next question comes from Nathan Po of National Bank Financial.

Congrats on the quarter. You had a larger working capital investment this quarter to secure supply. Could you elaborate on whether customers are also restocking ahead of tariffs or supply chain disruptions?

No, this is primarily just about ensuring that we have the right safety stock to ensure customer fill rates remain at tier 1 levels. It's also about level loading our facilities to make sure that we maximize our capacity opportunity as well as avoid certain tariff and supply chain risks. So those are the key reasons. So this will be a trend that continues. So every Q1, you'll see that seasonal acceleration of inventory we brought in earlier in the year. So you won't see as significant inventory growth in Q2 or a significant inventory growth in Q3. So we just accelerated a little bit, but full year, we expect to be in exactly the same position as we did at the beginning of the year.

Great color. And with the increase in brand loyalty that you have in China, how is that changing the way you approach marketing? And how has it changed perhaps the payback period on that spend?

Well, I mean, as we talked about from day one, we've paid back immediately since day one. We've been profitable on our spend from day one. Now we're just driving up the margin on the business. So the payback gets quicker on every spend or stronger, not quicker, it's stronger in that we have a stronger baseline of consumers.

We have a stronger consumer base to sell to. We can just leverage it across a larger base, and we can drive more efficiency off of every marketing dollar off of every promo, off of everything we do in market. We can just drive scale off of the investment. But we've never had a year where we put a big fixed investment in there and waited for it to pay back. It pays back immediately. We've been profitable from day one. We've been cash flow positive in China, and we'll continue to drive that forward.

And I think that gets lost a little bit in the results sometimes. I don't think -- I don't think the market fully understands that to drive profitability in China from day one and now get it into double digits, as Chris referred to, at the speed of which we have, it's really abnormal. Like it's really abnormal. And our team in China is doing an amazing job balancing top line growth, margin and profit payback and margin expansion now year after year and getting to the targets that we put into market. So we're really proud of the work they're doing. They've been extremely disciplined, and they've really been following the consumer and driving those dollars for greater and greater return for us.

That's very encouraging to hear. And since China has been firing on all cylinders and you did move up revenue growth guidance, at what point do you start to reevaluate your outlook?

I think, listen, China is a great market. It has some seasonality to it. You have two big promos. You've got the June 18 promo, the 11/11 promo. We're always sensitive to those coming up and then sensitive coming out of them. We never want to get too far ahead of ourselves in China based on that seasonality, and we want to continue to put responsible guides in the marketplace. We'll reassess in Q2, we'll reassess after Q3, and we'll determine where we think that's pacing on the [year].

Got it. And just one last one. Recently in Canada, we saw the approval of generic semaglutide injection from a large pharmaceutical company. How has the team been preparing for the inevitable launch as consumers gain access to that more affordable version of GLP-1s?

I mean I don't think there's any over preparation we need to do, as I talked about for a couple of years now. GLP-1 continues to be and will be for the long term, a tailwind to the category. The more consumers that get into a GLP-1 product, the more consumers out there that step change their health, the more consumers that have traditionally not been engaged in VMS become engaged in VMS. So with an announcement like that, we would never expect an immediate spike in our business.

We just know that those consumers or a percentage of those consumers will get healthier over time, which will have a long-term tailwind to our business. So we love to see it. We will see that tailwind. It will just happen over time and not immediate.

[Operator Instructions] Your next question comes from Tania Armstrong from Canaccord Genuity.

Congrats on the strong quarter. Just a couple more for me here. On China, just given that margin outperformance, could you maybe go into detail a little bit like why is that happening? Is it the channel mix? Is it gross margin outperformance? What is -- or operating leverage, whatever it is? And are there any borrowings that you can take from that market into other markets to maybe accelerate margin expansion there?

It's really about disciplined investment, Tania. It's about our performance marketing. It's about the real-time measure and the continued drive to improve the ROI on all of those activations. We see halo now resulting from a lot of that social e-com, KOL and performance marketing activity. And I think when you combine those factors, that's what's really driving -- you have the acceleration of volume, volume as a part in it, but it's really about their discipline and constant drive to improve ROI on that performance marketing activity.

Okay. And then secondly, you've done a great job mitigating U.S. tariffs so far through supply chain flexibility. As that trade policy continues to evolve and new tariff measures are being proposed through different channels, where do you see potential areas of risk for the business?

Yes. I mean tariffs, because of our flexible supply chain, we've actually been able to handle it quite well in an immaterial way, as we said all through last year, and you saw in our year-end results. We don't anticipate and have plan for any major changes in this year. If anything, based on where we buy raw materials and some of the announcements that we've seen lately, our tariff risk has actually reduced. We'll continue to track every announcement that comes out. We'll continue to see where it all goes. But right now, we feel like risk beyond what we already have in our business is minimal. I'd just remind you that we manufacture almost everything we sell in Canada in Canada and almost everything we sell in the United States in the United States. So we have been able to flex our supply chain to mitigate the announcements to date. We see reduced risk based on recent announcements, and we'll continue to monitor.

Your next question comes from Ryan Conrad from RBC Capital Markets.

I guess just to start off, Mike, I know you've previously spoken about younger demographics engaging with VMS for the first time. So to the extent possible, I'm curious if you could maybe share a bit more around that? Like what's driving these younger consumers to enter the category? And once they do enter, how does their repeat purchase rate or adoption of multiple products compared to maybe a broader customer base?

Yes. I think I would say, yes, we continue to see that trend. But the one thing to think about in how we presented this data in the past is we base this on a segmentation model, which is behavior-based, not age-based. So what we're seeing is the young demographic entering and following behaviors, which would align to our key segmentations, which would be a quality seeker or a routine user, and they're really getting embedded into the category. I mean they're spending a higher percentage of their discretionary income on health and wellness in general than any other generation today.

So you're seeing them enter through various apertures. You're seeing it continue to build and you're seeing them build a loyalty like anyone that is within those consumer segments regardless of their age demographic. So we feel quite good about it. We feel like it's here for the long term. You continue to see the younger demographic celebrating healthier living through social commerce -- social media. You continue to see them be very engaged in the communities that are setting trends.

And you see them really interested in quality. They're not looking for value brands or the lower-end brands. They're looking for quality brands that are transparent, that tell a good message that they know they can trust. This younger generation is into transparency and into brands that they just know what they buy and what we say is in the bottle is in the bottle. And I think our quality messaging at this time is really resonating with that demographic as well as the older demographic.

That's good. Appreciate that color. And then just shifting to the U.S. I know a big focus, obviously, is increasing digital penetration. So I was curious if there's maybe an opportunity to take some learnings from what you're doing with social commerce in China and leveraging that playbook on platforms such as TikTok Shop in the U.S.

We 100% are doing that, Ryland. For sure, our China team actually was with our U.S. team just last week and talking about how we can take some of the learnings from Douyin, for example, in China into TikTok Shop. And we're starting to see some good content in TikTok Shop. We're starting to see some growth in that new channel, and we're continuing to see strong consumption across all of our digital channels in the United States as we focus there.

That's awesome. And then just last for me, Chris, maybe on Strategic Partners. Could you just unpack the dynamics that you're seeing there in the first half with strong growth in Q1, but then now guiding to a revenue decline in Q2? And just how much visibility do you have on a return to growth there in the back half?

Yes. Q1, Q2 is primarily timing because when you look at net Q1 or H1, we're close to where we expected to be. We just had a customer called down their forecast that we built our long-term plan, our year plan around. So it just really reflects that anticipation where they were a little exuberant in terms of what they expected to be taking in fiscal '26.

Your next question comes from Max [indiscernible] from [Stifel]

This is Max on for Justin Keywood this afternoon. Nice quarter. Just a couple of questions. Maybe in understanding free cash flow conversion and tying back into the working capital conversation, should we expect potentially a more negative free cash flow profile in Q1 seasonally, where maybe Q1 of last year was a bit of an aberration in terms of that working capital dynamic?

Yes. I think that's the key difference. I don't think you'll see -- I think last year, you probably had the complete opposite effect where we had a higher-than-expected inventory position coming into Q1 because of the SAP implementation and a plant shutdown that coincided with that implementation. going 180 degrees the other way where we had a lower inventory value coming into Q1 with a strong back half of 2025.

And with that level loading from a facility utilization perspective, resulting in a pretty material increase in inventory. So not expected to be quite as severe in Q1 going forward, but this is what we had planned for fiscal 2026 and Q1 in particular. So working capital in totality is on track.

And maybe just a broader question on capital allocation. If M&A -- if the approach to M&A remains more opportunistic in nature, can you give some color on what the balance might be between buybacks and deleveraging and even reinvestment in the business just to get some detail on the rest of the year?

Yes. So we -- just I guess, going back to the beginning, we always are investing in the business to maximize our organic growth and our margin growth. So there is no choices being made in terms of timing or what to invest, driving profitability and driving volume. When we look at allocation following that, we're still active from an M&A perspective. We will take a look at all the businesses that come to market as they come to market. And when we see those opportunities come -- or when we see those opportunities being further out, then we'll be active on the NCIB. So it all kind of goes hand in hand.

There are no further questions at this time. This concludes today's conference call. Thank you all for your participation. You may now disconnect, ladies and gentlemen.

Good afternoon, everyone. Welcome to the Jamieson Wellness conference call to discuss the financial results for the fourth quarter and full year 2025.

[Operator Instructions]

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 Michael Pilato, President and Chief Executive Officer and Christopher Snowden, Chief Financial Officer.

Before I turn the call over to Mr. Pilato, please note that a press release covering the company's fourth 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 Jamieson'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 applicable 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. Pilato to get started. Please go ahead, sir.

Thank you. Good afternoon, everyone, and thanks for joining the call to discuss our fourth quarter and full year 2025 results.

2025 was another strong year for Jamieson Wellness, marked by consistent execution across our core markets and nearly 16% growth in our branded business. 

Consolidated revenue grew 12%, supported by meaningful gross margin expansion and stronger double-digit growth in adjusted EBITDA and operating cash flow. That momentum continued through the fourth quarter as well, led by 17% growth in our Jamieson Brands segment. 

Now let me touch on our key markets. China was a major driver of growth again in 2025, with revenue up more than 56%, outpacing the broader VMS market in the country by 4x.

That performance was driven by highly effective performance marketing and strong gains in brand awareness and purchase conversion metrics across all major digital platforms. 

Over the year, brand awareness to trial conversion rates increased by 57% and trial to regular buyer conversion rates grew by 81%.

The key message here is that our investments are paying off, and we're seeing that reflected in our brand health and repeat rate metrics. While digital remains the engine of growth in China, we're also seeing our brand strength carry over in-store, which speaks to the broader platform we're building in that important market. 

Youtheory delivered double-digit revenue growth on the full year, driven by the success of our new e-commerce go-to-market strategy and strong consumption in traditional channels.

We saw solid performance from innovation in high-growth categories like stress and energy support and continued distribution gains across key retailers. Taken together, these factors strengthen the brand's presence and positioning in one of our highest potential markets. 

In Canada, we continue to outpace the market with revenue up nearly 6% for the year, driven by even stronger consumer consumption behind our quality-focused marketing campaign.

Innovation also contributed meaningfully with new on-trend products and formats continuing to resonate with consumers and reinforce our leadership position in our home market. 

Our international business delivered another strong year with 2025 revenue up 24%, a particularly notable performance across the Middle East, Europe and the Caribbean.

Our Canadian quality campaign launched globally, combined with locally relevant innovation continues to drive trial, category growth and deeper consumer engagement with the Jamieson brand. 

Across all of our key markets, innovation continues to be an important part of our growth. We're focused on need states like immunity, sleep, stress and energy, and we're bringing forward formats and ingredients that reflect where the consumer is going, while leveraging our global platform to scale winning concepts quickly across geographies.

That ability to combine global consumer insight with local execution is a meaningful competitive advantage for us. 

As we look ahead to 2026, we expect another year of strong branded growth, building on the momentum we have created. We see significant runway ahead in China as our consumer base continues to expand. 

In the U.S., we're focused on accelerating digital and e-commerce growth and continuing to innovate in high-potential categories. 

In Canada, we'll continue leaning into our quality-led strategy and innovation to reinforce our market leadership. And internationally, we see continued opportunity through distribution gains and locally relevant innovation in our priority markets.

Together, these drivers give us confidence in our ability to deliver another year of solid top line and earnings growth in 2026.

With that, I'll turn it over to Chris to walk you through the financial details.

Thank you, Mike, and good afternoon, everyone. In the fourth quarter, consolidated revenue increased 13.4% to $277.7 million, driven by strong growth in our Jamieson Brands segment, partially offset by expected declines in strategic partners.

Jamieson Brands grew 17.1% to $237.4 million, while strategic partner revenues declined by 4.4%. Within Jamieson Brands, we delivered growth across each of our key markets. 

In China, revenue was up 43.9%, primarily driven by successful performance marketing, innovation generating growth and brand loyalty across all our major digital platforms.

In the U.S., youtheory grew 20.2%, driven by innovation, together with continued strong consumption in e-commerce and growth in our traditional channels. 

In Canada, revenue increased 5.5%, reflecting strong consumer consumption driven by our quality-focused marketing campaigns and innovation. International revenue increased by 39.2%, reflecting strong consumption and organic growth from all major markets led by the Middle East. 

In Jamieson Brands, gross profit increased by 19.7% or $18.6 million, and normalized gross margin increased by 90 basis points to 47.6%, reflecting the benefit of branded mix and scale in China.

Revenue in Strategic Partners reflected the anticipated decrease of 4.4% or $1.9 million in the quarter impacted by a reduction in business and the timing of onboarding of new customers, contracts related to trade and tariff uncertainties. 

Strategic Partner gross profit decreased by 2.4% in the quarter, driven by lower volumes. Gross profit margin increased by 30 basis points, mainly driven by customer and product mix.

In the quarter, consolidated gross profit increased by $18.5 million to $118.7 million, mainly driven by higher branded revenue and increased margins, partially offset by lower strategic partner revenues.

Gross profit margin increased by 180 basis points due to a higher proportion of growth in Jamieson Brands and higher growth in China impacting geographic mix.

SG&A expenses increased by 20% or $9.8 million in the quarter. The increase reflects investments in performance marketing, particularly in China, variable compensation and ongoing spend to support our global infrastructure.

Specific costs of $2.7 million in the quarter were primarily comprised of legal and professional fees related to due diligence for a potential acquisition that ultimately did not meet our very high standards for investment.

Earnings from operations decreased by 0.02%, driven by higher revenues and gross profit, offset by marketing investments and acquisition-related legal and other nonoperating costs.

On a normalized basis, earnings from operations were up 13.3% to $60.4 million in the quarter. Normalized operating margin was 21.8%, which was consistent with Q4 2024.

Adjusted EBITDA increased by 13.7% or $8.1 million in the quarter, and adjusted EBITDA margin was consistent with the prior year at 24.3%.

Net earnings were $37.6 million and adjusted net earnings increased by $3.9 million to $38.5 million. Adjusted diluted earnings per share were $0.90, an increase versus the prior year.

Turning to our balance sheet and cash flow. We generated $31.9 million in cash from operations in the fourth quarter compared to $37.8 million last year. Cash from operations before working capital was $12.9 million higher than Q4 2024, reflecting stronger underlying earnings.

This was offset by an $18.8 million increase in investment in working capital, driven by preliminary higher inventory levels to support growth and to mitigate risks related to tariffs and port congestion.

At year-end, we had $126.6 million in cash and available operating facilities. We continue to return capital to our shareholders in the quarter and over the full year.

In the fourth quarter, we purchased 53780 common shares for cancellation under our NCIB program for an aggregate consideration of $18.1 million and an average price of $34.05.

For the full year, we purchased almost 1.2 million common shares for a total of $37.9 million at an average share price of $32.39. We paid total dividends of approximately $37.2 million.

Today, we have announced a dividend of $0.23 per common share declared on February 26, 2026. totaling $9.5 million in aggregate. The dividend will be paid on March 16 to common shareholders of record on March 6.

Turning to our 2026 outlook. At the consolidated level, we expect revenue between $895 million and $935 million, representing 9% to almost 14% growth. With that, we expect Jamieson Brands revenue between $790 million and $820 million or growth of approximately 9% to 13%.

By region, we expect China revenue growth of 20% to 30% U.S. revenue growth of 14% to 19% in U.S. dollars, Canada revenue growth of 4% to 6% and international revenue growth of 10% to 15% in U.S. dollars.

We also expect Strategic Partner revenues to return to growth in 2026, increasing by 10% to 20%.

From a profitability perspective, in 2026, we expect consolidated adjusted EBITDA of $174 million to $181 million, representing growth of 9% to 13.4%, with adjusted EBITDA margins maintained at approximately 19.4%.

We also expect adjusted diluted earnings per share of between $2.08 and $2.21, reflecting growth of 12.5% to 19.5%.

From a cash perspective, we expect to generate between $120 million and $130 million of cash from operations before working capital, representing growth of 9% to 19%.

We expect working capital to increase by $25 million to $35 million, reflecting lower investments in 2025, organizational growth and the impact of tariffs on our supply chain.

Capital expenditures are expected to be approximately $20 million to support the maintenance of our operations and drive efficiency, including investments aligned with our sustainability goals.

Overall, the fourth quarter capped off a very strong year for Jamieson Wellness. We delivered solid financial performance and continue to invest for growth and exit 2025 with a strong balance sheet and a clear outlook for 2026.

With that, I'll turn the call back to Mike.

Thanks, Chris. As we step back and look at the full year, what stands out is the strength and resilience of the foundation we've built, bolstered in 2025 by the successful implementation of our new SAP system, supporting our global Canadian headquarters and three manufacturing facilities.

Across our markets, consumers are choosing our brands more often, coming back more often and responding to the innovation we're bringing forward with globally consistent, locally relevant products backed by the trust we've built for more than a century.

You can see that in the consistency of our execution throughout 2025 and the momentum we carry into 2026.

Vitamins, minerals and supplements is not a discretionary category. It's a staple in people's lives. The category was growing before COVID, it grew through COVID, and it continued to grow through one of the most challenging inflationary periods in the generation.

There is no category in CPG I would rather be in. And within it, we are well positioned to continue to grow and operate effectively in whatever environment comes our way.

Looking ahead, we're focused on scaling what's working, deepening our relationships with consumers, ensuring our distribution reflects where they want to shop, advancing our innovation pipeline across key need states and showing up with the same quality and trust that has always differentiated our brands.

We have a clear strategy, strong demand across our core markets and a team that continues to execute with discipline.

In 2026, with a guide of over $900 million in revenue, we are taking the next step in pursuing our goal of crossing $1 billion in sales. None of this happens without our people.

Their commitment to our purpose of inspiring better lives every day is what drives this business forward. I'm incredibly proud of their work and grateful for the passion and collaboration they bring to our consumers and our company every single day.

Thank you for joining us this afternoon and for your continued support of Jamieson Wellness. We'll now open the line for questions.

[Operator Instructions]

Our first question today comes from Stephen MacLeod from BMO Capital Markets.

Nice to see the very strong growth in Q4, particularly in China. And I know you talked a lot about the performance marketing campaigns and the focus on generating brand loyalty.

I'm just curious if you can talk a little bit about how those investments are expected to evolve in 2026.

Thanks, Steve. As we talked about a bit, you could see in our results, and as I talked about in the previous comments, we are seeing great conversion increases, starting with brand awareness and all the brand awareness programs that we're running.

We see brand awareness scores increasing. We then see trial increasing. Our conversion rates from awareness to trial are up 57%. And then from trial, consumers that are regularly buying or what you would call repeat, we're seeing those conversion rates increase 81%. 

So we're continuing to see the consumer resonate with our brand. We continue to see them to be more and more interested in our brand, and then try them and convert to be a regular user, which is fantastic. That's the goal.

We continue to see top line growth, and we continue to see margin growth in China as for the expectations we laid out in the Investor Day or Market Day back in March of 2025.

And we're quite pleased with the scale of the business and where it's taking us across all of our metrics right now. And we just expect more of it in 2026. 

The team in China is humming on all cylinders. I was there in November and just totally impressed by what they're doing, how they're operating, and just how engaged they are in growing this brand across consumers in China.

And I think you mentioned in your prepared remarks, just in China, you're seeing the brand growing into the store as well.

I guess, as people are seeing the brand online and then that digital growth that digital investment is resonating. So, can you talk a little bit about your in-store experience in China as well?

Yes. I mean the one thing about this digitally enabled retail world in China and starting to see it grow in other markets as well is it all works as a halo.

It's like what you're seeing online is operating as both a retail channel but also a marketing channel. And you're seeing more and more dollars being spent from traditional marketing and media into digital aperture, especially in a place like China. 

So, we saw, obviously, e-commerce is our biggest channel in China by quite a lot and the fastest-growing part of the market, and we saw great growth there. But we also saw great consumption growth in retail and club, like strong double-digit POS growth in those channels.

So, you're really seeing the halo effect of the brand equity building investment combined with the digital and e-commerce investment, haloing across not only retail, but all e-commerce platforms at the same time with strong growth across the board.

It's really nice to see, and it shows that the engine and what we would call the flywheel is working right now, which is great.

And then maybe just on Canada. I was just wondering if you could give some color around the sort of consumption volumes that you saw versus what you thought the market did in the quarter?

We saw the market on the quarter, on the year.

I was asking about the quarter specifically, but happy to hear both.

I mean, they both are in line with the same trend. We saw category consumption in Canada continue to grow at the mid-single-digit range in dollars and in units. And then as a company, we outpaced that by a couple of points.

So, I feel really good about consumption and shipments and all lining up to deliver what was a great year in Canada. I know we talk a lot about China, we talk a lot about youth, and they are our top growth vectors.

But to deliver a year in Canada again 5.9%, almost 6% that's just an incredible number in a very mature market where we already are a market leader. 

I'm just as impressed with the work the Canada team does to continue growing that business as I am for what's going on in China. It's been amazing to see that. And again, if you look at our guidance, Canada is expected to grow again somewhere in that range, which is great to see.

Our next question today comes from Justin Keywood from Stifel.

Excellent results. Maybe just to start on the favorable guide. What gives you confidence that the business is going to grow at that rate, including Canada, given the strong 2025 that will be lapped?

I think a couple of things, Justin. I think one, we have marketing programs and innovation, all led by some of the strongest consumer insights we've ever had globally, and that then resonates down to all of our markets.

I mean, our team is just on it right now and doing a great job in everything that they do. But the reality is the health and wellness category as a whole continues to grow globally. 

We continue to see optimistic growth projections on categories and all the markets we play in. We continue to see the consumer getting healthier.

We continue to see the aging population engage in the category in a deep way, and the younger generation, the Gen Zs, the millennials, and the Gen Zs getting into the category earlier than ever. I mean it's not uncommon nowadays to see 18- to 20-year-olds taking vitamins, minerals, and supplements, and you're seeing that grow and expand.

And I just think that global trend is perfectly in line for us to continue to grow and to continue to outpace the market growth based on our 100 years of heritage and knowing what we know and how to grow in this category.

And on the Q4, was there any impact from the tough flu season that we were in the mid? Or was it just regular demand patterns, including from the younger generation, as mentioned?

No, we definitely saw some immunity growth in Q4. And most notably in December, it really picked up in December.

We saw immunity really grow double-digit consumption in the month of December. So, it definitely is impacting the business. 

The one thing I would say, though, today is if you go back to COVID, we talked about immunity and it being a high percentage of our business, which it was and it still is, but it is much less meaningful part of our business today than it was back then.

I mean we've just expanded so much globally. We've expanded into so many categories. While it is a very important category for us and important in Canada, it doesn't have the same materiality in our numbers that it would have had historically, now that we're so much bigger in so many different places now.

And then in the opening remarks on M&A, there was mention of a potential acquisition not meeting the stringent criteria of Jamieson. Are you able to refresh us what that criteria is and how the M&A pipeline looks for this year?

Yes, we are looking for a scaled quality brand. We're focused primarily on the U.S. today as an ability to increase the breadth of our participation with the U.S. consumer in that market.

So, we're looking for digital expertise. We're looking for multichannel and multi-segment.

My question was by scaled provider. Would that be a similar size to youtheory or potentially larger?

I think minimum $100 million is what we're looking for. Certainly, if they had expertise in digital, we would consider smaller. But ideally, we would be looking for a little larger than $100 million.

Our next question comes from Nathan Po, National Bank Capital Markets.

So, your 2026 EBITDA margin commentary implies a stronger mix shift into fast-growing geographies, which don't have quite a mature margin profile yet.

How does that tie into your commentary from last quarter on higher ROI on marketing spend? And can you also frame that with respect to current growth expectations?

So, as we continue to reinvest and invest in China, we've been realizing a higher return on that brand awareness on that conversion, as Mike said.

So, we are actually ahead of our margin expectations in China as a specific geography, and you compare that to what we talked about in our March Investor Day presentation. 

The point offset is the fact that China is growing much faster. So even though you're ahead on a discrete margin profile perspective, them being a larger part of the overall pie is what allowed us to continue just to match the margin profile on an annual basis in '25 versus '24.

When we look forward to '26, we see margin growth in all segments of the business. Now it's the mix that then again, affects that margin. So with additional growth in Strategic partners, accelerated growth in China, that means we're going to be roughly flat in EBITDA margin year-over-year.

And can you give us an idea of seasonality this year with respect to promotional windows and pipe fill timing?

Yes. Seasonality doesn't change too much year-to-year. In each of our geographies, we have specific key promotional periods.

In Canada, you'd be really focused around Q3, back-to-school, back to routine New Year, New You. Within the U.S., it would be back to beach that July, June, July time frame, focused volume in Q2 and then again in Q4 with, again, the New Year, New You.

Whereas in China, you've got the two big promotional windows with 6/18 and 11/11. Those are going to be consistent year-on-year, and we don't see a big seasonal shift between our growth patterns between '25 and '26.

And just further on that, the commentary over the last 2 years on innovation, specifically in youtheory being front half weighted and back half weighted. Could you give us some more color on that?

Yes. Youtheory has a great year planned on innovation. I do think you will see a bit more balance this year and their innovation throughout the year.

We've got multiple products planned to launch. They're launching throughout the year. We did have a big launch in late Q3, early Q4 in 2025. So we will be lapping that in 2026, but I would expect a more evenly planned out innovation cycle, nothing that should have a material impact like that one last year did.

[Operator Instructions]

Our next question comes from Ryan Neal, TD Securities.

This is Ryan sending in for Derek. Canada is a mature market for you guys, but you're still evidently squeezing out that consistent mid-single-digit growth.

Just wondering if you could quickly talk about some of the categories where you're taking share as well as maybe some of the other categories you feel perhaps you're under-indexed in or growth is going to be higher moving forward?

Yes. I mean we continue to see great growth around things like sleep, energy, and stress. And of course, talking about the flu season of the past year in immunity.

So we continue to innovate and focus on where the trends are in the marketplace, and that's where we'll continue to focus. So I would say those trends are playing out globally.

We're seeing growth and share growth across most of our markets under those subcategories, and it continues to be the case here in Canada.

I'm sure you saw a lot of our advertising and innovation advertising and marketing campaign through Q3 and Q4 around our new magnesium product. That, for example, is doing very, very well for us and driving leadership in a category that is on fire, quite frankly, globally.

Our next question comes from Ryland Conrad, RBC Capital Markets.

Just on youtheory, I think it's been a year or so since you've launched the GLP-1 companions.

So could you just provide an update on that? And then more broadly, I mean, we've seen several developments in recent months around improving accessibility to GLP-1s, whether that be oral formats or just lower prices. So how are you thinking about the impact of GLP adoption just on BMS as a whole?

Yes. I think we've talked about this over the past couple of years. I think GLP plays well into our business on two fronts.

One is the products we launched to deal with some of the side effects, and I can talk about that in a minute.

But the larger, more exciting part for a business like ours is the long-term effect of GLP on global consumers and the fact that you have millions of global consumers that are step changing their health and step changing their health for the long term.

We know when consumers step change their health, they will engage in our category for the first time, then they will add a second product.

They'll continue to grow into the category. So I really do think that GLP-1 and this notion of consumers globally trying to get healthier and tapping into a consumer segment that hasn't typically been engaged in our category is really good for us long term. It might be a bit of a slower build, and it will take some time, but we truly believe that's a tailwind for our category for the long run.

When it comes to the specific products we launched, we launched them last year, early last year, we said we did not have a lot in our guide. It was a slow rollout.

We were testing it. We were seeing where the right place was for it. I would say that it's still early days. I mean it's a completely new segment. We have had some encouraging results, like, for example, on the multivitamin product online. We're starting to see some nice trends there.

We're just starting to really figure out with retailers, how do they tackle GLP-1 from a support product perspective and where is this category going to go. So I would say it's where we expect it to be at this time.

We expected it to remain modest through the year, but growing, and we continue to expect the same thing in 2026 as we continue to see where the GLP-1 trends go.

And then just on China and the medium-term margin trajectory there. I guess, could you maybe help us size that up? Like will that be gradual expansion as the business scales? Or are there any kind of step changes over that period?

So if you go back to our March investor presentation, we said there was about an 800 basis point margin evolution over the next 3 to 5 years starting from 2024 as a base.

We're well on track. That is really focused on levering the infrastructure that we've built out there. We've got, I think, more than 60 people in our Shanghai office now, and that team is really set up to deliver a significant amount of revenue.

So that will scale evenly. It will be a slow build over the next 3 to 4 years.

And then just still on China, I guess, given your success there to date, are there any plans to take your learnings there and just expand the Jamieson brand into other countries across APAC?

Yes, for sure. I mean we have an ongoing project going in Asia, trying to figure out what is the next big market for us in Asia.

We do have some business in other markets in Asia. We have for some time. But we do have a small group of people in our international team really trying to figure out where do we want to invest in Asia outside of China for the longer term. So that work is going on.

Nothing major built into our guidance for 2026. But as we start to expand and grow there, we will definitely make sure the market knows about it.

Ladies and gentlemen, there are no further questions at this time, and this concludes today's conference call. Thank you for your participation. You may now disconnect.

Good afternoon, everyone. Welcome to the Jamieson Wellness Conference Call to discuss the financial results for the third quarter of 2025. [Operator Instructions] 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 is Mike Pilato, President and Chief Executive Officer; and Chris Snowden, Chief Financial Officer.

Before I turn the call over to Mr. Pilato, please note that a press release covering the company's third 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, contains 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 Jamieson'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 applicable securities law.

Finally, we would like to remind listeners that the company may refer to certain non-IFRS financial measures during the teleconference. A reconciliation of this 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. Pilato to get started. Please go ahead, sir.

Thank you, Constantine, and thank you to those joining the call to discuss our Q3 results. I'm on the line today from our Jamieson office in Shanghai, and we'll be heading over to join the team at the China International Import Expo later this morning. More on that in a moment, but good morning to those listening at 6:00 a.m. here in Shanghai, and good afternoon and good evening to those of us back home in North America. I'll start with an overview of our Q3 performance and highlights. Chris will then review the financials in detail before I conclude our prepared remarks and open the floor to questions.

In Q3, we delivered another strong quarter with 16.5% branded growth and momentum across every major region. In China, our revenue was up over 60% in the quarter, and we grew our share position across all major digital platforms. We are proud to share that Jamieson was recently named Vitamin Mineral Supplements' Store of the Year on Douyin, one of the top social and e-commerce platforms in the country with over 700 million daily active users.

Our team on the ground here in Shanghai continues to actively evolve our marketing strategy to stay in line with consumer trends and behaviors, and it is paying off. Programs amplified by a diverse network of respected wellness influencers are delivering solid results across multiple platforms and channels. We're also continuing to see growth in our club and retail channels in China and significant gains in consumer trial and key brand equity metrics as we continue honing our marketing programs for maximum consumer engagement.

Youtheory continues to scale with revenue growth of almost 17% in Q3. Strong growth in both digital and traditional channels was led by product innovations, including our new Ashwagandha Gummy, in line with increasing consumer demand we're seeing for this ingredient in major markets around the world. Deeper consumer engagement with the brand continues to be a focus as our marketing and innovation teams continue to work together to meet evolving consumer needs.

Internationally, revenue was up almost 20% in the quarter. We're driving double-digit growth in key markets led by the Middle East with strong gains in markets such as Saudi Arabia, where Jamieson now ranks as a leading foreign brand. We continue to see strong execution of promotional campaigns in support of the magnesium category and health heart in key markets as an example.

In Canada, our marketing campaign featuring our product quality and Canadian-made message continues to resonate, driving growth and reinforcing trust in a market where we are the category leader. Innovation is also a key driver of growth with our expectations for the year exceeded at the end of September, 3 months ahead of schedule. This is largely due to our new magnesium product launched earlier this year, resonating strongly with consumers in this trending category, overdelivering versus our expectations.

We continue to closely monitor innovations launched last year, and those two continue to perform, led by Ashwagandha and Iron Gummy products, highlighting the importance of the fun and delicious formats that Jamieson is known for. We are not taking our foot off the gas in Canada. Products launched in the past couple of months will continue to drive performance through the end of Q4.

As a result of our exceptionally strong branded performance, we've increased the midpoint of our branded revenue guide for fiscal 2025 and raised the top end of our revenue expectations for both China and youtheory, which Chris will discuss in more detail shortly.

Our results this quarter and the quarters before it continue to reinforce what we already know. Momentum in the vitamin, mineral, supplement category continues to be strong with no signs of slowing. Consumers continue to increase the amount of time they spend online, focusing on education while engaging with digital communities to support their health and wellness journey. It is imperative that we understand this rapidly and changing environment and continue to show up where and how our consumers expect us to.

In support, I am pleased that we have welcomed Gayle Tait to our Board of Directors effective at the end of October. Gayle is a CPG and tech executive with over 25 years' experience, including roles at Google and L'Oreal. She has an impressive track record of driving enterprise expansion and value, particularly through digital innovation in both C-suite and board roles. She currently serves on the Board of a leading cosmetics and skin care company, where she has helped guide the company through a period of hyper growth, pioneering in nontraditional digital channels to drive connection with consumers. Gayle’s appointment comes at the perfect time as Jamieson's digital journey continues to evolve, and we look forward to leveraging her expertise and insights as we grow.

And as I mentioned earlier, I'm in Shanghai this week supporting our team at the China International Import Expo. As our presence in China continues to grow, events like this offer fantastic opportunities to bring Jamieson to the forefront with local and international media, industry, consumers and also a chance to continue to foster relationships with officials at all levels of government. This is Jamieson's first time attending this expo, and I'm really looking forward to experiencing it firsthand and representing our incredible brand on this global stage.

And with that, I will turn the call over to Chris to discuss the financials in more details. Chris, over to you.

Thank you, Mike, and good morning and good afternoon, everyone, wherever you may be listening from. In the third quarter, consolidated revenue increased by 13.2% to $199.3 million. Growth was driven by our Jamieson Brands segment, which exceeded expectations with growth of 16.5%, increasing to $180.5 million. Each of our branded business units grew revenue in the third quarter as follows: China increased by 63%, primarily driven by successful digital performance marketing campaigns. Youtheory increased by 16.8%, driven by strong consumption in e-commerce, innovation and growth in our traditional channels. International increased by 19.3%, driven by growth in core markets in the Middle East and innovation and with distribution gains. Canada increased by 4%, largely reflecting consumer consumption driven by our latest marketing campaign and innovations.

Revenue in our Strategic Partners segment had expected decrease of $2.4 million in the third quarter, impacted by a reduction of our consumers business and timing of our onboarding new customer contracts. Consolidated gross profit margin increased by $16 million in the third quarter, mainly driven by higher branded revenue and margins. Consolidated gross profit margin increased by 350 basis points, mainly due to a higher proportion of growth in Jamieson brand sales.

In the Jamieson Brands segment, gross profit increased by $16 million, mainly driven by revenue growth and higher margins. Gross profit margin in Jamieson Brands increased by 290 basis points, mainly driven by higher branded volumes in China, our highest margin business. In Strategic Partners, gross profit was $2.4 million, which is consistent with the same quarter of last year, and gross profit margin increased by 170 basis points, mainly driven by customer and program mix. SG&A expenses increased by 24.7% in the quarter. Excluding the impact of specified costs, SG&A expenses increased by $12.2 million or 31.7%, of which approximately $6.8 million was mainly due to the timing of variable compensation and $5.3 million was due to investments to grow our brand through variable e-commerce marketing campaigns and the weighting of influencer programs scheduled for the quarter.

Specified costs of $1.8 million are mainly comprised of system development costs and post-implementation start-up costs associated with our SAP implementation, plus other nonrecurring expenses primarily related to nonoperating legal costs. Operating income increased by $5.4 million, driven by higher gross profit and partially offset by our investments in SG&A. On a normalized basis, operating income increased by $3.6 million and Adjusted EBITDA increased by $4.1 million to $38 million. Adjusted net earnings was $17.7 million or $1.8 million higher than the third quarter of the previous year. A reconciliation of Adjusted EBITDA and Adjusted net earnings is provided in today's press release announcing our third quarter results.

Turning to the balance sheet and cash flow. We generated cash from operations before working capital considerations of $22.8 million, an increase of $4.3 million from the prior year. Cash invested in working capital increased by $20.8 million, mainly due to higher inventories to support seasonality, including growth of our business and help secure supply amidst tariff uncertainties and port congestion. In the third quarter, we purchased for cancellation 255,705 common shares under our NCIB program for aggregate consideration of $8.8 million at an average price of $34.52 per share.

In Q3, we distributed $9.7 million in dividends and ended the quarter with almost $128.8 million in cash and available operating lines. Based on the strength of our cash flow forecast in the year, we have announced a dividend of $0.23 per common share or approximately $9.6 million in aggregate. The dividend will be paid on December 15, 2025, to common shareholders of record at the close of business on December 1, 2025.

Now turning to outlook. Our 2025 investments in digital performance marketing and innovation continue to provide returns, while consumer consumption remains strong across each of our primary markets. As a result, we have narrowed our full year guidance for fiscal 2025, maintaining the midpoint of our growth expectation for both consolidated revenue and Adjusted EBITDA. We now expect the following consolidated results: revenue to range between $810 million and $830 million, 10.4% to 13.1% growth from our previous expectation of 9% to 14.5% growth. Adjusted EBITDA to range between $158 million and $162 million or 12% to 15% growth from our previous expectation of 11% to 15.5% growth; Adjusted diluted EPS to range from $1.82 to $1.88 or 13% to 17% growth from our previous expectation of 11% to 18% growth.

We are adjusting our segment outlook for fiscal 2025 to reflect higher Jamieson Brands revenue in China, driven by continued success of our digital investment strategy, innovation and category growth and lower strategic partner revenue to account for the planned reductions with an existing customer and timing of onboarding our new customers and programs.

For Q4 2025, our guidance reflects continued Jamieson Brands growth, building upon strong momentum in the first 3 quarters of 2025. Jamieson Brands business is based on strong consumer consumption, product innovation and distribution gains. In the fourth quarter of 2025, we expect the following: consolidated revenue of between $263 million and $283 million, reflecting growth of 7% to 16% Revenue in the Jamieson Brands segment is expected to increase by 8% to 17.5% to approximately $218 million to $238 million, driven by consumer demand, innovation and growth across all key markets. Revenue in the Strategic Partners segment is expected to grow by up to 10% to approximately $45 million due to new business partnerships. We anticipate Adjusted EBITDA to range from between $65.8 million and $69.8 million [Audio Gap] as well as [Technical Difficulty] performance is included in the outlook section of our MD&A filed this afternoon.

And with that, I will turn the call back to Mike for closing comments. Mike?

Thank you, Chris. Even against a volatile macro backdrop, our category continues to prove its resilience. Vitamins, mineral, supplements is increasingly central to how consumers care for themselves and their families. And with our diverse and growing branded platform, we're uniquely positioned to meet them across geographies, across channels and across life stages. As we wrap up a successful 2025, we will continue to execute on our strengths. We will further grow our platform to drive profit, taking advantage of the growing momentum in China and digital growth and innovation in the U.S., Canada and internationally.

Thanks to our entire team for delivering on our strategic road map and their dedication as we set our sights on a strong finish to the year.

Now over to questions that people have. Thank you.

[Operator Instructions] Your first question comes from the line of Nevan Yochim from BMO Capital Markets. Please go ahead.

You got Nevan on for Steve tonight. Hoping we could start on youtheory. Strong momentum in the quarter, which you mentioned was supported by innovation. Can you talk about the timing of the key product launches this year? Are those all in the market now? And then should that mean we would expect accelerating growth into the fourth quarter of the year?

Yes. So we started shipping the innovations in mid- to late Q3, and you'll see some of that continue to ship in early Q4. And as Chris mentioned earlier, you see our guidance in the fourth quarter. That's all built in. So we expect a strong Q4 coming off from the strong Q3 and continued momentum on youtheory to finish the year, as we've been talking about all year based on the timing of innovations moving from front half a year ago to back half this year.

And then on the domestic market, I believe the majority of the Q3 growth was driven by consumption rather than pricing. Can you confirm that's the case? And are you able to provide an update on some of your initiatives to gain your fair share of shelf space with existing customers?

Yes, that's a great question. Yes, you are 100% correct on the first part. Our consumption was in line with the growth that we -- it actually was in line with the growth that we delivered, so it's consumption based. We saw continued mid-single-digit consumption, both in units and dollars in Canada and are quite pleased with what we're seeing for sure. When it comes to some of our projects and innovation, it really, really is outperforming what our expectations were on the year.

We're seeing great take off on our magnesium product and on some of the innovations we launched a year ago, which are picking up strength through the year. As we talk about often, right, in our world, innovation is about laying down bunts and singles and over time, they turn into doubles and triples. And we're really starting to build some momentum on the products and the innovations we've launched over the last couple of years.

And sorry, Nevan, what was the second part of the question?

Just how you're doing in terms of your initiative to gain your fair share of shelf space with existing customers?

Yes. So I mean, gaining fair share and continuing to grow shelf space is key in our world as we continue to grow. We are continuing to pick up some shelf space across the category. We have an entire category management team. I mean that's pretty much what they do. They focus on helping retailers drive category growth. And as the market leader, it's our responsibility to help them drive that with our brand and with other market-leading initiatives. So that project is ongoing. It is always in the works, and we continue to enjoy at it quarter after quarter and year after year.

Your next question comes from the line of Zachary Evershed from National Capital Markets.

Congrats on the quarter. So guidance for working capital goes up a bit, reflecting the higher inventory for tariff mitigation strategies, among others. Can you give us an update on your weighted average tariff rate at this point in time?

We don't really talk about our weighted average tariff rate, Zach, as we've talked about for multiple quarters now, we have a very flexible supply chain. We continue to leverage all of our different manufacturing facilities and our sources of product to minimize the impact of tariffs as much as we can. As we've talked about, there is an immaterial impact to our P&L this year that we've balance across our platform. However, in doing that, as we're moving some production and we're moving some things around the system where we're sourcing from and how we're sourcing, we have increased our inventory position just to make sure we're in a good spot in terms of delivering to what consumers' needs are.

But there's not really a weighted average percentage tariff rate that, a, we would be comfortable releasing or two, that would even be something that just is static. It kind of moves around based on demand and based on what we're sourcing. But we have mitigated most of the impact this year, and we have an immaterial amount baked into the guidance at this point.

And with the uptick in buffer inventory, any risk of finished goods or raw materials obsolescence?

No, there's been no increase in that. No, we don't see any increase in risk and risk around that. We do have a strong Q4 to ship over the quarter. We'll continue to go through some of the raw materials in Q1. And where we see opportunities to make purchases that can mitigate risk, we'll take those opportunities.

And just one more. What are your thoughts on the [indiscernible] acquisition? Any read-throughs to transaction valuations or the competitive landscape?

I mean I don't really have a take on it that would relate to our business. It's obviously the combination of two massive CPG companies. It was nice to see, I would say, that a big strategic is looking closely and acquiring in the health and wellness space. I think it speaks to where the consumer is headed here, both from a vitamin, mineral supplements perspective and just health and wellness overall. But no real read that I would attribute to anything in our world just based on the sheer scale and size of those two organizations doesn't really relate to us.

Next question is from Ryland Conrad from RBC Capital Markets.

Maybe just starting on China, curious how you're feeling about the -- your positioning for the 11/11 promotional period next week. And then just the guidance does imply a deceleration in Q4. And I know it's a tougher comp, but just thinking back to your performance around 6/18, I was just wondering if there's a bit of conservatism in the guide?

Yes. Thanks, Conrad. We feel really good about 11/11. I mean the one thing just to note is 11/11 is not just a 1-week promo. It started weeks ago. It will finish next week. It is a 4- to 6-week promotional window now in China. We're feeling good at this point. We'll see where it all ramps up in a week, and we'll roll those results into our Q4 results. I will be here on 11/11 with some customers on the final day, and I'm looking forward to that and just seeing some live streaming and some of the great things going on around our brand.

When it comes to our guide for Q4, it is a little bit lower. We are up against a really big comp from a year ago. If you remember, our momentum just kept building and building. I would not call it a conservative guide at this point. I would call it a responsible guide. We're trying to guide that business responsibly every quarter. We're also focused a little more on higher ROI return programs at this point. We've been making money in China. We've been doing well in China. Our margin has continued to expand, and we're looking for more efficiency and effectiveness from an ROI perspective in our programs through Q4 and into 2026.

And then just on the opportunity with Sun Art in China. I understand their 500 stores are spread across various formats, and it's still pretty early days there. But is there any way you could help us kind of understand the magnitude of that opportunity just in the context of your kind of overall retail distribution in China at this point?

Yes, it's still very early days going into a testing module. I mean it's a great acquisition by our partner in DCP and a retailer that didn't -- hasn't really played traditionally in this category, so we're testing out the category, leveraging our brand, and we'll see. I would just follow our guide through the quarter through next year and any upside we see in that or any opportunity we see in that opportunity will be built into that opportunity. Of course, we're optimistic and looking forward to driving growth with them and believe it will be successful. But we like to test our way in. We like to try a few different things. And as we find the winning proposition for Sun Art and that acquisition, we'll be sure to talk about it more.

And then just shifting gears to youtheory and the runway for digital growth there. I guess now that you have the e-comm partnership that seems to be going quite well, what inning would you say you're in just with respect to increasing that penetration in line with the broader market?

I like the baseball analogy coming off the World Series, Conrad. I would say third inning. I would say third inning. I think we're getting bigger in the U.S. in digital with youtheory. But as we talked about all along, the category in the United States, about 30% to 40% -- 25% to 35% of the category, I'd say, is driven through the e-commerce channel and continues to grow. We are playing catch-up. We said it would take a few years to catch up. And I'd say we're in the third inning, hopefully entering the fourth by the end of the year.

Your next question comes from the line of Justin Keywood from Stifel.

Nice to see the results. On the mention of the Middle East driving international growth at a combined rate of 19%. Are you able just to provide some additional color on that geography? Is that relatively new opportunity for Jamieson? What proportion of the overall business or the international segment is that? And how should we be looking at the growth outlook there?

Yes. I mean Saudi Arabia is a growing country in vitamins, minerals and supplements. They -- we've been growing there for some time, Justin, and thank you for the congrats. It's been growing there for some time. But it's really accelerated in the last, call it, 18 months as the government has opened up the regulatory world a little differently and given access to more categories and more products that we're able to slip into and slide in and really grow our business.

We've picked up a lot of new distribution. We've had a lot of innovation in the market. And we have an extremely good partner in Saudi Arabia that we've been working with for some time. It is a material country in our international business. It is in the top 3 countries. It might even -- this is just about to become #1, I believe. But it is growing. We expect it to grow for some time. And we have focused our strategic efforts with our partner in Saudi to take advantage of what could be a growth opportunity for a while.

Is there any indication just for context on the TAM in Saudi Arabia or Middle East as compared, obviously, the U.S. is the #1 followed by China, but just in ranking the overall opportunity?

Well, I mean, it's not a big country like China or the United States. So it's not going to become something to the size of the opportunity there. But what I can tell you is it's a growing market, double-digit growing market. We're outpacing the market by 3x right now. And as that country focuses on growing its population base and its economic engine as a country, the category will continue to grow. But I mean, it's a relatively small country in comparison to China and the United States and the opportunities that present themselves there.

Your next question comes from the line of Derek Lessard from TD Securities.

This is [Ryan Singh] in for Derek. Congrats on the quarter. Are there any signs, would you say, of consumer weakness or even a trade down in any of the markets, either domestic or globally?

No, we continue to not see trade down happening in any of our data points. We continue to see consumers look for value and shift to channels that are digital or club in nature where they feel they can get value for their dollar. But we are seeing growth across lots of -- pretty much every channel and not seeing any trade down at all from a brand perspective that we've seen in our data points at least.

And then maybe just one follow-up, and I appreciate the color you guys have already given on the domestic market. But -- is there anything else that's noticeable about the Canadian POS landscape you've been seeing? Any detail there would be great.

Any detail on the POS landscape? Sorry, you cut out there for a second, Ryan?

Yes, detail on the POS landscape in Canada.

Yes. I mean what I would continue to say is we're continuing to see good growth in Canada outpacing market in both units and dollars in that mid-single-digit range. We continue to see the retailers highly engaged in the category and wanting to grow. We continue to see growth across categories like sleep and stress and energy. The trends that we've been talking about for the last couple of years are continuing here in Canada as Canadians continue to get more focused on proactive health and really, really trying to become healthier as a country. It's been a nice thing to see globally, and those trends continue to hold here in Canada.

[Operator Instructions] Your next question comes from the line of Tania Armstrong from Canaccord Genuity.

Just a couple for me here. First on, I guess, China, as you reported really good revenue growth there, primarily driven, I think you said digital marketing and influencer campaigns. I guess this is a more high-level question, but can you help us understand what the payback horizon is for that kind of marketing, so influencer investments, digital marketing, what the customer acquisition cost is, repeat purchase rates, lifetime value, things like that?

Well, Tania, what I would tell you is the ROI is immediate, like we pay back immediately. We're profitable in China. We make money every day here. And as we've talked about in the past, we don't release any of those numbers publicly for competitive reasons. However, what I can tell you is we've seen strong growth across all platforms. We've seen strong growth in brick-and-mortar. We're starting to really see the halo effect of our investment in digital -- in social commerce spreading across multiple channels and multiple platforms, and we're quite pleased with that.

We've also seen a little bit of a strategic shift from our team here, moving from -- not moving, but mixing up like mega KOLs or big KOLs with micro influencers and improving the ROI on our digital spend every quarter this year, and we'll continue to perform that way. The other thing I would share is in our brand health metrics, we continue to see our brand grow from a brand health perspective and all the research we do, which is telling us that the baselines and the repeat rates of the consumers in China are continuing to grow. And I think you can see that in our results quarter after quarter in the last couple of years.

And then just secondly, you've talked a lot about innovation leading growth this year. So like your Ashwagandha gummies, new formats, et cetera. Can you help frame how this innovation pipeline typically impacts gross margin as you scale into these new products? Are product intros generally margin accretive or dilutive in the first 12 months? And do you see this current cohort that you've launched this year trending better or worse than historical innovation cycles in terms of growth and accretion?

Yes. From an innovation perspective, we have very specific process. It's a Stage-Gate process that we use here at Jamieson. If you go back to some of the things we've talked about over the last couple of years, we operate in like a 3-year innovation cycle in a lot of cases. We tend to know what we're launching a year, 2 years and even up to 3 years from now. Obviously, trends shift and change, and we'll adjust the pipeline as we go, but we have a good view out to the future. We have a very robust and disciplined process for innovation like we do on everything we do. And in there includes gross margin expectations for innovation. It is always our goal to launch at a higher gross margin or at worse neutral. We don't typically launch things at a less than current gross margin structure. It's not within our mandate or the way we operate. And I would say the latest innovations are, on average, neutral to slightly positive on average across the board.

Thank you very much. There are no further questions at this time. This concludes today's conference call. Thank you very much for your participation. You may now disconnect.

Good afternoon, everyone. Welcome to the Jamieson Wellness conference call to discuss the financial results for the second quarter 2025. [Operator Instructions] 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 Pilato, President and Chief Executive Officer; and Chris Snowden, Chief Financial Officer and Corporate Secretary.

Before I turn the call over to Mr. Pilato, 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 Jamieson'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 applicable 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. Pilato to get started. Please go ahead, sir.

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 Jamieson ecosystem. This investment halos the rest of the Jamieson business as we saw remarkable results in our traditional cross-border e-commerce platforms, brick-and-mortar channels and specifically through our successful 6/18 campaign, which averaged 73% growth over the prior year's promotion.

In the U.S., youtheory is gaining traction with growth of nearly 10% in the quarter. Consumption grew in our traditional retail channels and was also particularly strong in e-commerce, 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 Jamieson 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 while we work to understand business impact with our partners. Now clarified, we are on track for Q4 delivery on these opportunities.

We exited the first half of 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 road map, 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?

Thank you, Mike, and good afternoon, everyone. In the second quarter, consolidated revenue increased by 7.7% to $199 million. Growth in the quarter was driven by our Jamieson Brands segment, which exceeded expectations with growth of 13.8%, increasing to $177 million. Each of our branded business units grew revenue in the second quarter as follows: China increased by 70.8%, primarily driven by a successful 6/18 promotional campaign, continued consumer loyalty behind our brand-building investments and a heavier weight of influencer programs scheduled for the quarter.

Youtheory 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 $7.2 million 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 $15.8 million in Q2, while normalized gross profit margin -- or gross profit increased by $14.2 million, mainly driven by higher brand revenues and increased margins, partially offset by lower strategic partner volumes. Consolidated gross profit margin increased by 540 basis points to 40.6%, while normalized consolidated gross profit margins increased by 460 basis points.

In the Jamieson Brands segment, gross profit increased by $17 million, while normalized gross profit increased by $15.4 million, mainly driven by higher revenue and increased margins. Gross profit margin in the Jamieson Brands increased by 480 basis points, while normalized gross profit increased by 370 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 Partners gross profit decreased by $1.2 million and gross profit margin decreased by 110 basis points, mainly driven by lower volumes and production mix.

SG&A expenses increased by 26.2% in the quarter. Excluding the impact of specified costs, SG&A expenses increased by $10.9 million 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 $4.7 million in the quarter are mainly comprised of system development costs and post-implementation start-up costs associated with our SAP system implementation and other nonrecurring expenses primarily related to nonoperating legal costs.

Operating income increased by $5.1 million, driven by higher gross profit and partially offset by our investment in SG&A. On a normalized basis, operating income increased by $4.1 million and adjusted EBITDA increased by $3.5 million to $35.1 million.

Adjusted net earnings was $17.3 million or $2.6 million 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 $18.8 million, an increase of $1.7 million from the prior year. Cash used in working capital decreased by $2.9 million, 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 $3.1 million at an average price of $32.43 per share. In Q2, we distributed $8.8 million in dividends and ended the quarter with almost $133 million 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 $9.5 million in aggregate, an increase of $0.02 per share or 9.5%. The dividend will be paid on September 12, 2025, to common shareholders of record at the close of business on August 29, 2025.

Now turning to outlook. We are maintaining our consolidated revenue and adjusted EBITDA outlook for fiscal 2025, while adjusting our Jamieson Brands 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 2025, we now expect the following: Revenue in the Jamieson Brands segment to range between $695 million to $720 million (sic) [ $725 million ] representing 10.5% to 15.3% growth. Jamieson China revenue is now expected to grow between 30% and 40%, driven by market expansion, innovation and increased effectiveness and efficiency of our digital media programs driving trial and awareness. Revenue in the Strategic Partners segment to range between $105 million and $116 million, 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 $1.90 or 11% to 18% growth, reflecting higher interest expense on the repurchase of shares under our NCIB program and the timing of higher seasonal working capital investments.

Our Q3 guidance reflects continued Jamieson Brands growth built upon our first half momentum. In the third quarter, we expect the following: consolidated revenue of between $182 million and $192 million, representing 3.3% to 9% growth with higher Jamieson Brands shipments slightly offset by expected declines within our Strategic Partners segment. Revenue in Jamieson Brands 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 Partners segment is expected to decrease between 10% and 20% due to planned reductions within existing customers and the timing of commercialization of new business. Adjusted EBITDA to range between $35 million and $37 million.

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 recognize 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 2025 as well as factors impacting our expected performance is included in the outlook section of our MD&A filed this afternoon.

And with that, I will turn the call back to Mike for closing comments. Mike?

Thank you, Chris, and thanks for your contributions as Corporate Secretary for Jamieson 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 Jamieson team working extremely hard with passion, with purpose and with collaboration. They are an amazing group of professionals that I'm proud to be a part of.

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

[Operator Instructions] Your first question is from Derek Lessard from TD Cowen.

Congratulations on solid results all around. Just maybe a couple for me. I just wanted to zero in on the PR and new theory. I think you guys said that you're gaining traction through the traditional retail presence. I 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.

Yes. I think what we're saying in that portion is 2 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 2 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 innovation. So really proud of what the team has 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.

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 [indiscernible]?

Yes. Your Q3 shipments will still be strong within guide. There's no anomaly in the quarter there, just maybe a little bit extra...

One thing I would just point to everyone in terms of timing. If you go back to last quarter, we talked about a year ago, innovation in youtheory was front half weighted, and this year, it's back half weighted. So we're going to see some strong innovation in the back half on youtheory.

Okay. And just maybe last one on China. Pointed to brand loyalty growth, just maybe talk about how you're measuring that and what you're seeing in terms of the trend.

Yes. So the way we measure it is a few ways. So we look at what is happening on social commerce 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 some 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've really started to see consumer equity and brand equity really start to grow behind our investments. 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.

Your next question is from Nevan Yochim from BMO Capital Markets.

You got Nevan on for Steve tonight. A couple of questions. 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?

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, 62% 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. But 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.

Got it. 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?

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 as 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.

Our next question is from Justin Keywood from Stifel.

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?

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 to talk about tariffs, talk about the impact, which at this point is really no impact under the CUSMA 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.

Is there some thought to perhaps replacing those customers with domestic opportunities? Or we...

No, 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.

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 -- I assume it's an opportunity for Jamieson, but maybe just if you see it the same way and how that could play out in the quarters ahead?

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 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.

[Operator Instructions] Your next question is from Zachary Evershed from National Bank Financial.

Congrats on the quarter. 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 the lift that you're hoping to get on the marketing?

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 sudden, 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.

Got you. And then on the key innovations in the Proudly Canadian platform, what is resonating and driving that domestic growth in addition to the magnesium category?

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 -- a 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 3 pillars. Our quality campaign, our new quality campaign is doing exceptionally well for us using our own employees, giving consumers a peek into our 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, a little bit of pickup on this Proudly Canadian theme that we're feeling here in Canada today.

Your next question is from Ryland Conrad from RBC Capital Markets.

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-1? Is that expected to be more of a meaningful contributor in the back half?

Yes. I mean our GLP-1 product launched, I think, a couple of late Q4 last year and maybe the third one early Q1. As we've talked about, it's kind of 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 in this category, [ bumps 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.

Got it. 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&A later this year. But just curious if there have been any kind of changes to your priorities just following the preferred share redemption by DCP.

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 end of 2025 and into 2026. We continue to have our requirements from an M&A perspective, and we'll evaluate opportunities as they come to our attention.

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.