Jamieson Wellness Inc. Reports Second Quarter 2025 Results

Jamieson Brands revenue up 13.8% Highly successful 6/18 program in China grows 73% over prior year Company Website: https://www.jamiesonwellness.com/English/home/default.aspx TORONTO -- (Business Wire) Jamieson Wellness Inc. (“Jamieson Wellness” or the “Company”) (TSX: JWEL) today reported its second quarter results for the period ended June 30, 2025. All amounts are expressed in Canadian dollars. Certain metrics, including those expressed on an adjusted basis, are non-IFRS and other financial measures. See “Non-IFRS and Other Financial Measures” below. Management Commentary “Q2 marked another solid quarter, reinforcing the continued strength of the health and wellness category and Jamieson’s leadership within it," said Mike Pilato, President and CEO of Jamieson Wellness. "Branded revenue growth of nearly 14 percent reflects both sustained global demand for our trusted brands and our team's precise execution of our strategic plan across all key markets. “In Canada, our 'Proudly Canadian' platform continues to resonate with consumers driving strong consumption growth while our innovation pipeline drives category-leading performance. In the U.S., youtheory is gaining traction through our traditional retail presence and our new ecommerce partnership, with strong consumption growth validating our strategy. In China, our successful 6/18 campaign delivered exceptional growth as our investment in brand awareness continues to resonate with consumers. And internationally, we're seeing continued momentum driven by innovation, particularly across the Middle East and Southeast Asia. “In the first half of 2025, our branded business expanded by nearly 14%, with growth across all our branded business units. As we head into the second half of the year we’re pleased to increase our quarterly dividend, as we have done every year as a public company. We remain focused on executing our innovation roadmap, expanding our global reach, and driving operational excellence. Built on our 103-year foundation of quality and trust, we're executing from an even stronger position as we continue to Inspire Better Lives Every Day." Second Quarter Highlights New Jamieson innovation, notably behind the trending magnesium category and “Proudly Canadian” marketing programs drove strong consumer consumption in Canada Highly successful 6/18 promotion in China achieved 73% growth over prior year Trending ingredients drove increased youtheory consumption including accelerated growth in stress support and a market-leading product in the energy category New product launches and successful heart and women’s health campaigns drove sell through in many International markets Summary of Consolidated Results All comparisons are with the second quarter of 2024 Consolidated revenue increased 7.7% to $199.1 million, driven by 13.8% growth in Jamieson Brands partially offset by an expected decline in Strategic Partners Gross profit increased by $15.8 million to $80.8 million; normalized gross profit increased by $14.2 million largely driven by higher branded revenue and margins Gross profit margin3 increased by 540 basis points; normalized gross profit margin increased 460 basis points due to favourable channel mix and prior year inefficiencies EBITDA1 increased by $5.8 million to $30.1 million, mainly driven by higher revenues and gross profit; Adjusted EBITDA1 increased by $3.5 million or 11.2% to $35.1 million, reflecting the impact of higher sales volumes, partially offset by timing of investments in SG&A Net earnings was $13.8 million; Adjusted net earnings1 was $17.3 million, or $2.6 million higher, reflecting higher normalized earnings from operations Diluted earnings per share was $0.30; Adjusted diluted earnings per share2 was $0.40 Summary of Segment Results All comparisons are with the second quarter of 2024 Jamieson Brands Revenue increased 13.8% or $21.5 million Canada revenue increased by 2.0%, driven by strong consumer consumption, partially offset by the impact of order fulfillment in Q2 prior year after the labour disruption in the first quarter China revenue increased 70.8% driven by a successful 6/18 promotional campaign, continued brand loyalty growth behind our brand building investment, and a heavier weighting of influencer programs scheduled in the quarter youtheory revenue increased by 9.7% mainly driven by strong consumption in e-commerce driven by our new strategic partnership, growth in our traditional channels, and timing of shipments of our Q3 promotional programs International revenue increased by 9.6% driven by growth in core markets in the Middle East and Asia Gross profit increased by $17.0 million to $78.3 million; normalized gross profit increased by $15.4 million mainly driven by revenue growth and higher margins Gross profit margin3 increased by 480 basis points; normalized gross profit margin increased by 370 basis points mainly driven by volume efficiencies compared to inefficiencies due to the labour disruption in the prior year and favourable channel mix Adjusted EBITDA1 increased by $4.8 million to $33.5 million, driven by higher gross profit partially offset by timing of SG&A to support growth and brand awareness in China; Adjusted EBITDA margin2 was 18.9%, an increase of 50 basis points mainly due to improved gross profit margins Strategic Partners Revenue decreased an expected 24.9% or $7.2 million, impacted by the timing of customer ordering patterns under new programs and shipments shifting to the second half of the year Gross profit decreased by $1.2 million; gross profit margin3 decreased by 110 basis points driven mainly by production mix Adjusted EBITDA1 was $1.6 million, a decrease of $1.2 million; Adjusted EBITDA margin2 was 7.5%, a decrease of 240 basis points Balance Sheet and Cash Flow from Operations All comparisons are with the second quarter of 2024 As at June 30, 2025, the Company had approximately $132.9 million in cash and available revolving and swingline facilities and net debt1 of $367.1 million The Company generated $11.4 million in cash from operations compared to $6.9 million generated in Q2 2024 Cash from operating activities before working capital considerations of $18.8 million was $1.7 million higher than Q2 2024 Cash invested in working capital decreased by $2.9 million mainly due to timing of vendor payments, partially offset by the timing of customer collections and increased inventories to support the growth of the business During the six-month period ended June 30, 2025, the Company purchased for cancellation 444,580 Common Shares under its normal course issuer bid (“NCIB”) program for an aggregate consideration of $13.1 million 1 This is a non-IFRS financial measure. See the “Non-IFRS and Other Financial Measures” section of this press release for more information on each non-IFRS financial measure. 2 This is a non-IFRS ratio. See the “Non-IFRS and Other Financial Measures” section of this press release for more information on each non-IFRS ratio. 3 This is a supplementary financial measure. See the “Non-IFRS and Other Financial Measures” section of this press release for more information on each supplementary financial measure. Adjusting Fiscal 2025 Outlook The Company is maintaining its consolidated revenue and Adjusted EBITDA outlook for the 2025 fiscal year and continues to anticipate the following: Revenue to range between $800.0 to $840.0 million (9.0% to 14.5% growth) Adjusted EBITDA to range from $157.0 to $163.0 million (11.0% to 15.5% growth) The Company is adjusting its outlook for the 2025 fiscal year to reflect higher Jamieson Brands revenue in China due to strong demand, and lower Strategic Partners revenue to account for the timing of onboarding new partners. As such, the Company now expects the following: Revenue in the Jamieson Brands segment to range between $695.0 to $725.0 (10.5% to 15.3% growth), updated from the Company’s previous expectation of $685.0 to $720.0 million (9.0% to 14.5% growth) Jamieson China revenue to grow 30.0% to 40.0%, updated from the previous range of 25.0% to 35.0%. Growth will be driven by market growth, innovation, and by further extending effectiveness and efficiency within digital programs driving trial and awareness. Revenue in the Strategic Partners segment to range between $105.0 to $116.0 (up to 10.0% growth), updated from the Company’s previous expectation of $116.0 to $121.0 million (10.0% to 15.0% growth) Growth is expected to be driven by new programs and industry growth propelling higher volumes within the Company’s existing program portfolio. Uncertainties surrounding U.S. tariffs have delayed launches of new programs and the timing of onboarding new customers have shifted revenues to the following year. In addition, Adjusted diluted earnings per share is expected to range from $1.79 to $1.90 (11.0% to 18.0% growth), reflecting higher interest expense on the repurchase of shares under the NCIB program and timing of seasonal working capital investments. The Company’s 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 the Company’s overall financial performance, as these costs have been mitigated through the Company’s flexible supply chain and operating efficiencies. The Company recognizes that the trade environment is constantly changing and actual results may be impacted by future changes in global trade policies. For additional details on the Company’s fiscal 2025 outlook, including guidance for the third quarter of 2025, refer to the “Outlook” section in the management’s discussion and analysis of financial condition and results of operations (“MD&A”) for the three and six months ended June 30, 2025. Declaration of Second Quarter Dividend The board of directors of the Company authorized a 2.0 cent or a 9.5% increase in the quarterly dividend and declared a cash dividend for the second quarter of 2025 of $0.23 per common share, or approximately $9.5 million in total. Payable: September 12, 2025 Record date: August 29, 2025 Designated an “eligible dividend” under the Income Tax Act (Canada) Consolidated Financial Statements and Management’s Discussion and Analysis The Company’s unaudited condensed consolidated interim financial statements and accompanying notes as at and for the three and six months ended June 30, 2025 and related MD&A are available under the Company’s profile on SEDAR+ at www.sedarplus.ca and on the Investor Relations section of the Company’s website at https://investors.jamiesonwellness.com. Conference Call Management will host a conference call to discuss the Company’s second quarter 2025 results at 5:00 p.m. ET today, August 7, 2025. To access: By phone: 1-800-717-1738 from Canada and the U.S. or 1-646-307-1865 from international locations Online: https://investors.jamiesonwellness.com or https://viavid.webcasts.com/starthere.jsp?ei=1726891&tp_key=eee3aa172e About Jamieson Wellness Jamieson Wellness is dedicated to Inspiring Better Lives Every Day with its portfolio of innovative natural health brands. Established in 1922, the Jamieson brand is Canada's #1 vitamins, minerals and supplements (“VMS”) brand. The Company’s youtheory brand, acquired in 2022, is an established and growing lifestyle brand in the U.S. Combined, these global brands are available in more than 50 countries worldwide. The Company also offers a variety of innovative VMS products as well as sports nutrition products to consumers in Canada with its Progressive, Smart Solutions, Iron Vegan and Precision brands. The Company is a participant of the United Nations Global Compact and adheres to its principles-based approach to responsible business. For more information please visit jamiesonwellness.com. Jamieson Wellness’ head office is located at 1 Adelaide Street East Suite 2200, Toronto, Ontario, Canada. Forward-Looking Information This press release may contain forward-looking information within the meaning of applicable securities legislation. Such information includes, but is not limited to, statements related to the Company’s anticipated results and its outlook for its 2024 revenue, Adjusted EBITDA and Adjusted diluted earnings per share. Words such as “expect”, “anticipate”, “intend”, “may”, “will”, “estimate” and variations of such words and similar expressions are intended to identify such forward-looking information. This information reflects the Company’s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company’s control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under “Risk Factors” in the Company’s Annual Information Form dated March 31, 2025 and under the “Risk Factors” section in the MD&A filed today, August 7, 2025. This information is based on the Company’s reasonable assumptions and beliefs in light of the information currently available to it and the statements are made as of the date of this press release. The Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law or regulatory authority. The Company cautions that the list of risk factors and uncertainties is not exhaustive and other factors could also adversely affect the Company’s results. Readers are urged to consider the risks, uncertainties and assumptions associated with these statements carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. See “Forward-looking Information” and “Risk Factors” within the MD&A for a discussion of the uncertainties, risks and assumptions associated with these statements. Jamieson Wellness Inc. Selected Consolidated Financial Information In thousands of Canadian dollars, except share and per share amounts   Three months ended Six months ended June 30 June 30 2025 2024 2025 2024   Revenue 199,109   184,806   345,072   312,844   Cost of sales 118,295   119,778   209,038   205,031   Gross profit 80,814   65,028   136,034   107,813     Gross profit margin 40.6 % 35.2 % 39.4 % 34.5 %   Selling, general and administrative expenses 55,346   43,867   104,933   83,425   Share-based compensation 2,078   1,744   4,165   3,493   Earnings from operations 23,390   19,417   26,936   20,895     Operating margin 11.7 % 10.5 % 7.8 % 6.7 %   Foreign exchange gain (1,749 ) (180 ) (1,245 ) (951 ) Interest expense and other financing costs 4,771   4,647   9,679   9,520   Accretion on preferred shares 1,155   2,121   3,427   4,340   Earnings before income taxes 19,213   12,829   15,075   7,986   Provision for income taxes 5,385   4,516   3,761   3,392   Net earnings 13,828   8,313   11,314   4,594     Net earnings attributable to: Shareholders 13,071   8,653   10,625   4,540   Non-controlling interests 757   (340 ) 689   54   13,828   8,313   11,314   4,594   Adjusted net earnings 17,267   14,654   23,215   18,569     EBITDA 30,118   24,358   37,915   31,507   Adjusted EBITDA 35,100   31,555   54,166   47,652     Adjusted EBITDA margin 17.6 % 17.1 % 15.7 % 15.2 %   Weighted average number of shares Basic 41,712,207   41,456,594   41,845,278   41,468,227   Diluted 43,065,916   42,472,623   43,104,101   42,304,411     Earnings per share attributable to common shareholders: Basic, earnings per share 0.31   0.20   0.25   0.11   Diluted, earnings per share 0.30   0.20   0.25   0.11   Adjusted diluted, earnings per share 0.40   0.35   0.54   0.44     Jamieson Wellness Inc. Consolidated Statements of Financial Position In thousands of Canadian dollars   June 30, 2025 December 31, 2024 Assets Current assets Cash 50,537 44,787 Accounts receivable 165,085 228,031 Inventories 191,939 154,658 Derivatives 1,238 2,661 Prepaid expenses and other current assets 6,167 6,803 Income taxes recoverable 5,272 - 420,238 436,940 Non-current assets Property, plant and equipment 101,302 103,591 Goodwill 279,433 287,503 Intangible assets 364,747 377,214 Deferred income tax 4,265 3,545 Total assets 1,169,985 1,208,793   Liabilities Current liabilities Accounts payable and accrued liabilities 139,102 137,653 Income taxes payable 1,345 4,373 Derivatives 4,767 2,982 Current portion of other long-term liabilities 17,790 27,673 163,004 172,681 Long-term liabilities Long-term debt 417,652 308,285 Post-retirement benefits 1,268 1,209 Deferred income tax 63,594 64,467 Redeemable preferred shares - 98,138 Other long-term liabilities 13,409 15,633 Total liabilities 658,927 660,413   Equity Share capital 328,879 326,219 Warrants 14,705 14,705 Contributed surplus 25,014 23,835 Retained earnings 82,436 99,109 Accumulated other comprehensive income 17,336 41,313 Total shareholders' equity 468,370 505,181 Non-controlling interests 42,688 43,199 Total equity 511,058 548,380 Total liabilities and equity 1,169,985 1,208,793 Non-IFRS and Other Financial Measures This press release makes reference to certain financial measures, including non-IFRS financial measures that are historical, non-IFRS measures that are forward-looking, non-GAAP ratios and supplementary financial measures. Management uses these financial measures for purposes of comparison to prior periods and development of future projections and earnings growth prospects. This information is also used by management to measure the profitability of ongoing operations and in analyzing the Company’s business performance and trends. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company’s results of operations from management’s perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS. The Company uses the following non-IFRS financial measures: “EBITDA”, “Adjusted EBITDA” and “Adjusted net earnings”, the most directly comparable financial measure for each that is disclosed in its financial statements being net earnings, “normalized gross profit”, “normalized SG&A”, “normalized earnings from operations”, “cash from operating activities before working capital considerations” and “net debt”, the most directly comparable financial measures for each that is disclosed in its financial statements being gross profit, SG&A, earnings from operations, cash flows from operating activities, and long-term debt, respectively, the following non-IFRS ratios: “Adjusted EBITDA margin”, “Adjusted diluted earnings per share”, “normalized gross profit margin”, “normalized operating margin”, and the following supplementary financial measures: “gross profit margin” and “operating margin” to provide supplemental measures of the Company’s operating performance and thus highlight trends in the Company’s core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management also uses non-IFRS and supplementary financial measures in order to prepare annual operating budgets and to determine components of management compensation. For an explanation of the composition of each such measure and the usefulness and additional uses of each by management, see the “How we Assess the Performance of our Business” section of the MD&A, which is incorporated by reference. See below for a quantitative reconciliation of each non-IFRS financial measure to its most directly comparable financial measure disclosed in the Company’s financial statements to which the measure relates. The following tables provide a quantitative reconciliation of net earnings to EBITDA, Adjusted EBITDA, and Adjusted net earnings, as well as gross profit to normalized gross profit, SG&A to normalized SG&A, earnings from operations to normalized earnings from operations and net debt, each of which are non-IFRS financial measures (see the “Non-IFRS and Other Financial Measures” of this press release for further information on each non-IFRS financial measure) for the three and six months ended June 30, 2025. Jamieson Wellness Inc. Segment Information In thousands of Canadian dollars, except as otherwise noted   Jamieson Brands   Three months ended June 30 2025 2024 $ Change % Change   Revenue 177,317   155,787   21,530   13.8 %   Gross profit 78,251   61,284   16,967   27.7 % Labour relations costs (1) -   1,414   (1,414 ) (100.0 %) Acquisition and divestiture related costs (2) -   165   (165 ) (100.0 %) Normalized gross profit 78,251   62,863   15,388   24.5 %   Gross profit margin 44.1 % 39.3 % -   4.8 % Normalized gross profit margin 44.1 % 40.4 % -   3.7 %   Share-based compensation (3) 2,078   1,744   334   19.2 %   Selling, general and administrative expenses 53,767   42,262   11,505   27.2 % Acquisition and divestiture related costs (2) -   (324 ) 324   100.0 % IT system implementation (4) (3,796 ) (3,449 ) (347 ) (10.1 %) Legal and other (6) (857 ) -   (857 ) (100.0 %) Labour relations costs (1) -   (281 ) 281   100.0 % Normalized selling, general and administrative expenses 49,114   38,208   10,906   28.5 %   Earnings from operations 22,406   17,278   5,128   29.7 % Acquisition and divestiture related costs (2) -   489   (489 ) (100.0 %) IT system implementation (4) 3,796   3,449   347   10.1 % Labour relations costs (1) -   1,695   (1,695 ) (100.0 %) Legal and other (6) 857   -   857   100.0 % Normalized earnings from operations 27,059   22,911   4,148   18.1 %   Operating margin 12.6 % 11.1 % -   1.5 % Normalized operating margin 15.3 % 14.7 % -   0.6 %   Adjusted EBITDA 33,455   28,691   4,764   16.6 % Adjusted EBITDA margin 18.9 % 18.4 % -   0.5 %     Strategic Partners   Three months ended June 30   2025   2024   $ Change   % Change   Revenue 21,792   29,019   (7,227 ) (24.9 %)   Gross profit 2,563   3,744   (1,181 ) (31.5 %) Gross profit margin 11.8 % 12.9 % -   (1.1 %)   Selling, general and administrative expenses 1,579   1,605   (26 ) (1.6 %)   Earnings from operations 984   2,139   (1,155 ) (54.0 %) Operating margin 4.5 % 7.4 % -   (2.9 %)   Adjusted EBITDA 1,645   2,864   (1,219 ) (42.6 %) Adjusted EBITDA margin 7.5 % 9.9 % -   (2.4 %)     Jamieson Brands   Six months ended June 30 2025 2024 $ Change % Change   Revenue 308,698   271,135   37,563   13.9 %   Gross profit 132,041   102,414   29,627   28.9 % Labour relations costs (1) -   4,667   (4,667 ) (100.0 %) IT system implementation (4) 1,023   -   1,023   100.0 % Acquisition and divestiture related costs (2) -   165   (165 ) (100.0 %) Normalized gross profit 133,064   107,246   25,818   24.1 %   Gross profit margin 42.8 % 37.8 % -   5.0 % Normalized gross profit margin 43.1 % 39.6 % -   3.5 %   Share-based compensation (3) 4,165   3,493   672   19.2 %   Selling, general and administrative expenses 101,807   80,323   21,484   26.7 % Acquisition and divestiture related costs (2) -   (324 ) 324   100.0 % IT system implementation (4) (8,082 ) (6,429 ) (1,653 ) (25.7 %) Labour relations costs (1) -   (1,721 ) 1,721   100.0 % Donations (5) (3,118 ) -   (3,118 ) (100.0 %) Legal and other (6) (882 ) (297 ) (585 ) (197.0 %) Normalized selling, general and administrative expenses 89,725   71,552   18,173   25.4 %   Earnings from operations 26,069   18,598   7,471   40.2 % Acquisition and divestiture related costs (2) -   489   (489 ) (100.0 %) IT system implementation (4) 9,105   6,429   2,676   41.6 % Labour relations costs (1) -   6,388   (6,388 ) (100.0 %) Donations (5) 3,118   -   3,118   100.0 % Legal and other (6) 882   297   585   197.0 % Normalized earnings from operations 39,174   32,201   6,973   21.7 %   Operating margin 8.4 % 6.9 % -   1.5 % Normalized operating margin 12.7 % 11.9 % -   0.8 %   Adjusted EBITDA 51,728   43,815   7,913   18.1 % Adjusted EBITDA margin 16.8 % 16.2 % -   0.6 %     Strategic Partners   Six months ended June 30 2025 2024 $ Change % Change   Revenue 36,374   41,709   (5,335 ) (12.8 %)   Gross profit 3,993   5,399   (1,406 ) (26.0 %) IT system implementation (4) 226   -   226   100.0 % Normalized gross profit 4,219   5,399   (1,180 ) (21.9 %)   Gross profit margin 11.0 % 12.9 % -   (1.9 %) Normalized gross profit margin 11.6 % 12.9 % -   (1.3 %)   Selling, general and administrative expenses 3,126   3,102   24   0.8 %   Earnings from operations 867   2,297   (1,430 ) (62.3 %) IT system implementation (4) 226   -   226   100.0 % Normalized earnings from operations 1,093   2,297   (1,204 ) (52.4 %)   Operating margin 2.4 % 5.5 % -   (3.1 %) Normalized operating margin 3.0 % 5.5 % -   (2.5 %)   Adjusted EBITDA 2,438   3,837   (1,399 ) (36.5 %) Adjusted EBITDA margin 6.7 % 9.2 % -   (2.5 %)   Reconciliation of Non-IFRS Financial Measures In thousands of Canadian dollars   Three months ended Six months ended June 30 June 30 2025 2024 2025 2024     Net earnings: 13,828   8,313   11,314   4,594   Add: Recovery of income taxes 5,385   4,516   3,761   3,392   Interest expense and other financing costs 4,771   4,647   9,679   9,520   Accretion on preferred shares 1,155   2,121   3,427   4,340   Depreciation of property, plant, and equipment 3,474   3,236   6,729   6,752   Amortization of intangible assets 1,505   1,525   3,005   2,909     Earnings before interest, taxes, depreciation, and amortization (EBITDA) 30,118   24,358   37,915   31,507   Share-based compensation (3) 2,078   1,744   4,165   3,493   Foreign exchange gain (1,749 ) (180 ) (1,245 ) (951 ) Labour relations costs (1) -   1,695   -   6,388   IT system implementation (4) 3,796   3,449   9,331   6,429   Acquisition and divestiture related costs (2) -   489   -   -   Donations (5) -   -   3,118   -   Legal and other (6) 857   -   882   297   Adjusted EBITDA 35,100   31,555   54,166   47,652     Recovery of income taxes (5,385 ) (4,516 ) (3,761 ) (3,392 ) Interest expense and other financing costs (4,771 ) (4,647 ) (9,679 ) (9,520 ) Depreciation of property, plant, and equipment (3,474 ) (3,236 ) (6,729 ) (6,752 ) Amortization of intangible assets (1,505 ) (1,525 ) (3,005 ) (2,909 ) Share-based compensation (3) (1,956 ) (1,622 ) (3,921 ) (3,249 ) Tax deduction from vesting of certain share-based awards (19 ) -   (708 ) -   Tax effect of normalization adjustments (723 ) (1,355 ) (3,148 ) (3,261 ) Adjusted net earnings 17,267   14,654   23,215   18,569       Three months ended Six months ended June 30 June 30 2025 2024 2025 2024   Gross profit 80,814   65,028   136,034   107,813   Labour relations costs (1) -   1,414   -   4,667   Acquisition and divestiture related costs (2) -   165   -   165   IT system implementation (4) -   -   1,249   165   Normalized gross profit 80,814   66,607   137,283   112,645   Normalized gross profit margin 40.6 % 36.0 % 39.8 % 36.0 %   Selling, general and administrative expenses 55,346   43,867   104,933   83,425   Acquisition and divestiture related costs (2) -   (324 ) -   (324 ) IT system implementation (4) (3,796 ) (3,449 ) (8,082 ) (6,429 ) Labour relations costs (1) -   (281 ) -   (1,721 ) Donations (5) -   -   (3,118 ) -   Legal and other (6) (857 ) -   (882 ) (297 ) Normalized selling, general and administrative expenses 50,693   39,813   92,851   74,654     Earnings from operations 23,390   19,417   26,936   20,895   Acquisition and divestiture related costs (2) -   489   -   489   IT system implementation (4) 3,796   3,449   9,331   6,429   Donations (5) -   -   3,118   -   Labour relations costs (1) -   1,695   -   6,388   Legal and other (6) 857   -   882   297   Normalized earnings from operations 28,043   25,050   40,267   34,498   Normalized operating margin 14.1 % 13.6 % 11.7 % 11.0 % (1) These expenses are mainly comprised of third-party legal, security fees, unavoidable facility expenditures, customer fines and penalties, along with freight charges to expedite shipments to customers as it relates to a labour disruption in Q1 2024. (2) Prior year expenses mainly pertain to legal, consulting and integration costs associated with the acquisition and integration of our former distributor partner in China on April 28, 2023. (3) The Company’s share-based compensation expense pertains to our long-term incentive plan (the “LTIP”) (refer to “Share-based compensation”), with stock options, performance-based share units (“PSUs”), time-based restricted share units (“RSUs”), and deferred share units (“DSUs”) expenses, along with associated payroll taxes. (4) Mainly pertains to development costs associated with our IT system implementation to augment our system infrastructure. Unlike other system improvement projects with costs capitalized, due to its cloud-based nature, these system implementation costs are expensed accordingly. (5) Include cash and in-kind donations to support communities adjacent to our Irvine, California facility impacted by the wildfires. (6) Includes other non-recurring expenses primarily related to non-operational legal costs. Reconciliation of Net Debt In thousands of Canadian dollars   ($ in 000's) As at June 30, As at December 31, 2025 2024   Long-term debt 417,652   308,285   Cash (50,537 ) (44,787 ) Net debt 367,115   263,498     View source version on businesswire.com: https://www.businesswire.com/news/home/20250807657614/en/ Contacts: Investor and Media Contact Information: Jamieson Wellness Ruth Winker 416-960-0052 [email protected] Source: Jamieson Wellness Inc.