As we approach the end of the year and the inevitable Christmas lunch, thoughts here in the UK turn to New Year’s resolutions and to how to live more healthily in the year ahead. This seems more important than ever with news of the Omicron variant spreading across the world. Below are five different stocks that could benefit from the demand for healthier living which we think will do well in the year ahead.
#1. The Gym Group (LSE:GYM)
Founded in 2007 and IPO’ing towards the back end of 2015, The Gym Group is one of the main providers of gym facilities in the UK, with over 200 locations nationwide. As with all other gym providers, the company was hit hard by the pandemic, being forced to temporarily shut down all of its stores.
The growing enthusiasm surrounding healthy lifestyles and keeping active has allowed The Gym Group to rebound strongly out of the Covid-19 crisis. Its share price has so far risen by 155% from its lowest point in March 2020 and, Covid aside, it is likely that the stock’s value will continue to climb. With the increasing threat of further government restrictions on indoor activities, however, the company’s future financial performance is uncertain.
#2. Zoglo’s Incredible Food Corp (FSE:7UT)
Zoglo’s Incredible Food Corp is a Canadian and Frankfurt-listed food company which owns proprietary technology for zero meat ready meals. It is carving out a big slice of the Canadian grocery market where there is still little choice when it comes to fast prep zero meat menus.
Zoglo’s is moving into the European market and consumers in the UK can expect to see its products appearing on shelves in the course of next year. The company posted excellent numbers on the back of new Canadian distribution deals – it saw revenues up 560% in Q3. It also reported record gross profits. The company listed on the Frankfurt Stock Exchange in November and is on the verge of buying 51% of plant-based food manufacturer Monday Swiss.
#3. Science in Sport plc (LSE:SIS)
Science in Sport (SIS) is a global sports nutrition company that develops, manufactures and markets sports nutrition products for sports enthusiasts in over 80 international markets. Founded in 1992, Science in Sport has grown to become a strong and recognisable brand in the sports community. Its products are sold through a range of retail channels, including major grocers and high-street retailers, and used by Team Sky and GB Rowing, along with several other major sports groups.
Science in Sport’s share price has remained fairly stable since it was first listed on the London Stock Exchange in mid-2013, rebounding from the effects of the Covid-19 crisis swiftly. Looking forward, the company’s financial performance will be heavily influenced by consumer demand for its products, and therefore, the situation surrounding Covid-19 and its emergency status.
#4. Poda Holdings (FSE:99L)
Poda Holdings is a maker of patented heat not burn smoking products. With more and more smokers looking for a non-tobacco alternative as a means to give up smoking (often a New Year’s resolution for smokers) Poda is well-placed with its eco-friendly Beyond Burn range of patented pod-based devices. The company reports it is already taking orders in Asia where it has a production facility in China (the Chinese market alone has over 400m tobacco smokers).
Poda’s technology, using pelletised tea leaves infused with synthetic nicotine, is also being adapted for use in the CBD market and is being looked at for its possibilities as an inhaler in the medical industry. Right now the focus is on gearing up for massive distribution: this year it signed a distribution agreement with Eson to allow Poda devices to be sold to the tune of 50m units per month under the Neafs brand in Europe and Asia.
#5. Bakkavor Group (LSE:BAKK)
Bakkavor Group (Bakkavor) is an international food manufacturing company specialising in fresh prepared foods. Since its inception in 1986, the company has branched out of the UK to serve five other major countries: Belgium, Italy, Spain, USA and China. It now operates across 45 locations and employs over 19,000 workers, selling its products to global grocery retailers and well-known international food brands.
Although Bakkavor’s share price has already risen by 52.6% in 2021, further price action is predicted with demand for healthy and freshly prepared foods on the up. Favourable macro trends combined with the company’s growing reputation indicates its financials will continue to impress in the near future.
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