United-Guardian Reports Increased First Quarter Sales & Earnings

Rhea-AI Summary

United-Guardian, Inc. (NASDAQ:UG) reported increased first quarter sales and earnings for 2024. Sales rose from $2,570,324 in 2023 to $3,254,944 in 2024, with net income increasing from $756,081 to $925,442. Cosmetic ingredients sales surged by 146%, driven by increased purchases from their largest distributor, ASI. However, pharmaceutical sales declined by 30% due to a temporary shutdown at a contract manufacturer's facility affecting Renacidin® sales. Production has since resumed, and orders are being fulfilled since March.

Positive

• First quarter sales increased by 27% from 2023 to 2024, reaching $3,254,944.

• Cosmetic ingredients sales saw a significant surge of 146%, attributed to increased purchases from the largest distributor, ASI.

• The net income for the first quarter rose to $925,442, marking a positive financial performance for United-Guardian.

Negative

• Pharmaceutical sales experienced a decline of 30% due to a temporary shutdown at the contract manufacturer's facility affecting Renacidin® sales.

• The decrease in pharmaceutical sales offset the increase in cosmetic ingredients sales, posing a challenge to the overall sales mix.

News Market Reaction – UG

+5.62%

1 alert

+5.62% News Effect

On the day this news was published, UG gained 5.62%, reflecting a notable positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

HAUPPAUGE, N.Y., May 10, 2024 (GLOBE NEWSWIRE) -- United-Guardian, Inc. (NASDAQ:UG) announced today the financial results for the first quarter of 2024. First quarter sales increased from $2,570,324 in 2023 to $3,254,944 in 2024, with net income increasing from $756,081 ($0.16 per share) to $925,442 ($0.20 per share).

Donna Vigilante, President of United-Guardian, stated, “We are pleased to announce that sales increased by 27% for the first quarter of 2024 compared with the same period in 2023. Cosmetic ingredients saw the greatest increase with sales up 146%. The increase was primarily attributable to an increase in purchases from our largest cosmetic distributor, ASI. We did, however, experience a decrease in our pharmaceutical sales of 30%. While we saw a slight increase in Clorpactin^® WCS90 sales it was offset by a larger decrease in Renacidin^® sales which occurred as a result of a temporary shutdown at our contract manufacturer’s facility late last year. We were forced to allocate our existing stock of Renacidin to maintain sufficient supply levels to fill customer orders. We are happy to announce that production of Renacidin has resumed, and we started fulfilling orders in their entirety at the end of March.”

United-Guardian is a manufacturer of cosmetic ingredients, pharmaceuticals, medical lubricants, and sexual wellness ingredients.

Contact:	Donna Vigilante
	(631) 273-0900
	dvigilante@u-g.com

NOTE: This press release contains both historical and "forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements about the company’s expectations or beliefs concerning future events, such as financial performance, business prospects, and similar matters, are being made in reliance upon the “safe harbor” provisions of that Act. Such statements are subject to a variety of factors that could cause our actual results or performance to differ materially from the anticipated results or performance expressed or implied by such forward-looking statements. For further information about the risks and uncertainties that may affect the company’s business please refer to the company's reports and filings with the Securities and Exchange Commission.

Financial Results for the Three Months Ended March 31, 2024 and 2023
STATEMENTS OF INCOME (UNAUDITED)
		THREE MONTHS ENDED MARCH 31,
			2024			2023
Net sales		$	3,254,944		$	2,570,324
Costs and expenses:
Cost of sales			1,556,490			1,093,595
Operating expenses			568,865			517,946
Research and development			102,982			126,959
Total costs and expenses			2,228,337			1,738,500
Income from operations			1,026,607			831,824
Other income:
Investment income			98,073			47,632
Net gain on marketable securities			41,496			72,701
Total other income			139,569			120,333
Income before provision for income taxes			1,166,176			952,157
Provision for income taxes			240,734			196,076
Net income		$	925,442		$	756,081
Earnings per common share
(basic and diluted)		$	0.20		$	0.16
Weighted average shares – basic and diluted			4,594,319			4,594,319

FAQ

What was the percentage increase in first quarter sales for United-Guardian in 2024 compared to 2023?

First quarter sales for United-Guardian increased by 27% from 2023 to 2024.

What caused the surge in cosmetic ingredients sales for United-Guardian in the first quarter of 2024?

The surge in cosmetic ingredients sales was primarily driven by increased purchases from their largest distributor, ASI.

Why did United-Guardian experience a decline in pharmaceutical sales in the first quarter of 2024?

United-Guardian faced a decline in pharmaceutical sales of 30% due to a temporary shutdown at the contract manufacturer's facility affecting Renacidin® sales.