Jamieson Wellness Inc.

administrators for a more detailed discussion of the factors that could cause actual results to differ materially from those predictions and any forward-looking statements. The company undertakes no obligation to publicly correct or update the forward-looking statements made during a presentation to reflect future events or circumstances, except as it may be required under the optical 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. Pallotto 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 Jameson ecosystem. This investment halos the rest of the Jameson business as we saw remarkable results in our traditional cross-border e-commerce platforms, brick and mortar channels, and specifically through our successful 618 campaign, which averaged 73% growth over the prior year's promotion. In the U.S., U Theory 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 Jameson 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 partner 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 worked 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 roadmap, 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% to $199 million. Growth in the quarter was driven by our Jameson brand 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 618 promotional campaign, continued consumer loyalty behind our brand building investments, and a heavier weight of influencer programs scheduled for the quarter. Youth theory 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 .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 labour 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 partner 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 Jameson brand 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 Jameson brand 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 partner 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 .2% in the quarter, excluding the impact of specified costs. SG&A expenses increased by $10.9 million, or .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 startup costs associated with our SAP system implementation and other non-recurring expenses primarily related to non-operating 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 Jameson brand 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 Jameson brand segment to range between $695 to $720 million, representing 10.5 to .3% growth. Jameson 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 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 NCI program and the timing of higher seasonal working capital investments. Our Q3 guidance reflects continued Jameson brand growth built upon our first half momentum. In the third quarter, we expect the following. Consolidated revenue of between $182 and $192 million, representing 3.3 to 9% growth, with higher Jameson brand shipments slightly offset by expected declines within our strategic partners segment. Revenue in Jameson brand 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 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 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 recognized 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.