For the second quarter of 2023, JWEL reported revenue of $167.6 million, up 49.6% year-over-year, missing estimates of $168.5 million. Jamieson Brands revenue rose 51.5%. Adjusted EBITDA increased 27.1% year-over-year to $31.1 million, meeting street consensus. Management cut the top-end of its revenue and EBITDA guidance due to higher cost of capital requiring greater retail inventory management, and approval backlogs in international markets. The dividend was raised by 12%. The main concern of this quarter is inventory management and the higher cost of capital. We think the company is still on the right track with solid demand in the eCommerce channel and growth initiatives in the US and China. We think a lower valuation multiple given the rising debt would make sense. We would hold and watch.
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