Every New Year starts off with healthy resolutions. Eat better, stay in shape, exercise, eat your vitamins and the likes. Healthy eating and nutrition are multi-billion dollar industries and will only go higher as people try their best to stay fit.
This trend takes a sharp upward curve during the first three months of the year, and now is the perfect time to buy into companies that are going to benefit the most from this phenomenon.
Lassonde Industries (TSX:LAS-A) is a North American leader in the development, manufacturing and sale of a wide range of ready-to-drink fruit, vegetable juices, and drinks marketed under brands such as Apple & Eve, Everfresh, Fairlee, Fruité, Graves, Oasis, Old Orchard and Rougemont.
Lassonde is also one of the two largest producers of store brand shelf-stable fruit juices and drinks in the United States and a major producer of cranberry sauces.
In the latest numbers announced for the third quarter of 2019, Lassonde posted sales of $422 .9 million in the third quarter of 2019, up 1% year over year. The company’s operating profit for the third quarter of 2019 totalled $25 million.
Industry sales volumes in the U.S. and Canadian fruit juice and drinks markets were down for the 12-month period ended September 28, 2019, but the company’s sales were up 1%.
Lassonde expects that, for 2019, it will be able to achieve a consolidated annual sales growth rate slightly above that of 2018, which means that we can expect revenues slightly over the 2018 figure of $1.59 billion.
The company offers a forward dividend yield of 1.5% and analysts tracking the stock have a target price of $180 for it in the next 12 months. That’s an upside of just over 13% from current levels.
Given that people will want to stay fit irrespective of a slowdown in the economy, it looks like Lassonde is a safe bet to place.
Founded in 1922, Jamieson Wellness (TSX:JWEL) is Canada’s leading branded manufacturer, distributor, and marketer of high-quality natural health products.
The company offer consumers a comprehensive and innovative line of branded vitamins, minerals and supplements, sports nutrition and certain over-the-counter remedy products through their Jamieson, LVHS, Progressive, Precision and Iron Vegan brands.
The company’s third-quarter results for 2019 were impressive. Consolidated revenue increased 11.2% to $88.6 million and adjusted EBITDA increased 8.6% to $19.4 million while net income was $4.9 million.
International sales for Jamieson increased 24% this quarter led by strong growth in China. The company is betting heavy on the country and plans to expand its portfolio from the current 15 products it has for sale by adding five more to the roster by the end of 2019. Jamieson also sees see strong demand in the cross-border e-commerce segment in China.
With the New Year around the corner, this is a great stock to pick up. Everyone wants to get fit and Jamieson is likely going to be the first choice for nutrition for a lot of people.
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Aditya Raghunath has no position in any of the stocks mentioned.