United-Guardian Reports Increased Second Quarter Sales & Earnings

Rhea-AI Summary

United-Guardian (NASDAQ:UG) reported strong financial results for Q2 and H1 2024. Sales for H1 2024 increased to $6,645,149 from $5,220,623 in 2023, while net income rose to $1,881,667 ($0.41 per share) from $1,217,175 ($0.26 per share). Q2 2024 sales grew to $3,390,205 from $2,650,299 in 2023, with net income increasing to $956,225 ($0.21 per share) from $461,094 ($0.10 per share).

Key highlights include:

• Cosmetic ingredient sales up 84% in Q2 and 115% in H1 2024
• Medical lubricant sales increased 15% in Q2 and 9% in H1 2024
• Pharmaceutical product sales up 3% in Q2 but down 13% in H1 2024 due to a temporary shutdown

The company attributes the growth to increased purchases from its largest cosmetic distributor and recovering Renacidin® sales after production resumed in late March.

Positive

• Sales increased by 27.3% to $6,645,149 in H1 2024
• Net income grew by 54.6% to $1,881,667 in H1 2024
• EPS increased from $0.26 to $0.41 in H1 2024
• Q2 2024 sales rose by 28% to $3,390,205
• Q2 2024 net income more than doubled to $956,225
• Cosmetic ingredient sales surged 115% in H1 2024
• Medical lubricant sales grew 9% in H1 2024

Negative

• Pharmaceutical product sales decreased 13% in H1 2024 due to a production shutdown

Insights

Financial Analyst

United-Guardian's Q2 2024 results show significant improvement, with sales increasing by 27.9% to $3,390,205 and net income more than doubling to $956,225. The EPS jumped from $0.10 to $0.21, indicating strong profitability growth. The company's performance for the first half of 2024 is equally impressive, with sales up 27.3% to $6,645,149 and net income rising by 54.6% to $1,881,667. This growth is primarily driven by a substantial 84% increase in cosmetic ingredient sales in Q2, highlighting the company's strong position in this market segment. The recovery in medical lubricant sales and the resumption of Renacidin production suggest potential for continued growth in the coming quarters.

Market Research Analyst

The substantial growth in United-Guardian's cosmetic ingredient sales, particularly the 115% increase in the first half of 2024, signals a robust demand in the beauty and personal care market. This surge, primarily driven by their largest cosmetic distributor, suggests a potential shift in consumer preferences or successful product positioning. The 15% increase in medical lubricant sales indicates steady growth in the healthcare sector. However, the temporary setback in pharmaceutical product sales due to manufacturing issues highlights the importance of supply chain resilience. As Renacidin production resumes, monitoring its sales recovery will be important to gauge the company's ability to regain market share in the pharmaceutical segment.

HAUPPAUGE, N.Y., Aug. 09, 2024 (GLOBE NEWSWIRE) -- United-Guardian, Inc. (NASDAQ:UG) announced today the financial results for the second quarter and first half of 2024. Sales for the six-month period ended June 30^th increased from $5,220,623 in 2023 to $6,645,149 in 2024 and net income increased from $1,217,175 ($0.26 per share) to $1,881,667 ($0.41 per share) for the same period. Second quarter sales increased from $2,650,299 in 2023 to $3,390,205 in 2024, with net income increasing from $461,094 ($0.10 per share) to $956,225 ($0.21 per share).

Donna Vigilante, President of United-Guardian, stated, “We are pleased to announce that sales increased for both the second quarter and the first six months of 2024 compared with the same periods in 2023. Cosmetic ingredient sales increased by 84% in the second quarter and 115% for the first six months of 2024. This increase was primarily attributable to purchases from our largest cosmetic distributor. Sales of medical lubricants increased as well for both the second quarter and first six months of 2024 by 15% and 9% respectively. Pharmaceutical product sales increased in the second quarter by 3% but decreased 13% for the first six months of 2024. The decrease for the six-month period was attributable to a shutdown we experienced with our contract manufacturer for Renacidin^® late last year. Renacidin production resumed in late March, and sales are in the process of recovering.”

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 and Six Months Ended June 30, 2024 and 2023 STATEMENTS OF INCOME (unaudited)
		THREE MONTHS ENDED JUNE 30,								SIX MONTHS ENDED JUNE 30,
		2024				2023				2024				2023
Net sales		$	3,390,205			$	2,650,299			$	6,645,149			$	5,220,623
Costs and expenses:
Cost of sales			1,561,090				1,429,407				3,117,580				2,523,002
Operating expenses			602,777				574,093				1,171,642				1,092,039
Research and development expense			111,660				128,729				214,642				255,688
Total costs and expenses			2,275,527				2,132,229				4,503,864				3,870,729
Income from operations			1,114,678				518,070				2,141,285				1,349,894
Other income (expense):
Investment income			100,007				54,950				198,080				102,582
Net (loss) gain on marketable securities			(9,501	)			7,479				31,995				80,180
Total other income			90,506				62,429				230,075				182,762
Income before provision for income taxes			1,205,184				580,499				2,371,360				1,532,656
Provision for income taxes			248,959				119,405				489,693				315,481
Net income		$	956,225			$	461,094			$	1,881,667			$	1,217,175
Earnings per common share  (basic and diluted)		$	0.21			$	0.10			$	0.41			$	0.26
Weighted average shares  (basic and diluted)			4,594,319				4,594,319				4,594,319				4,594,319

FAQ

What were United-Guardian's (UG) Q2 2024 financial results?

United-Guardian (UG) reported Q2 2024 sales of $3,390,205, up from $2,650,299 in Q2 2023. Net income increased to $956,225 ($0.21 per share) from $461,094 ($0.10 per share) in the same period last year.

How did United-Guardian's (UG) cosmetic ingredient sales perform in H1 2024?

United-Guardian's (UG) cosmetic ingredient sales increased by 115% in the first half of 2024 compared to the same period in 2023, primarily due to increased purchases from their largest cosmetic distributor.

What caused the decrease in United-Guardian's (UG) pharmaceutical product sales in H1 2024?

United-Guardian's (UG) pharmaceutical product sales decreased by 13% in H1 2024 due to a shutdown experienced with their contract manufacturer for Renacidin® late last year. Production resumed in late March, and sales are in the process of recovering.

How did United-Guardian's (UG) medical lubricant sales perform in Q2 2024?

United-Guardian's (UG) medical lubricant sales increased by 15% in Q2 2024 compared to the same quarter in 2023.