United-Guardian(UG) - 2025 Q2 - Quarterly Results

Key Financial Highlights (Q2 and H1 2025) Q2 and H1 2025 net sales and income declined year-over-year, with Q2 showing sequential improvement Second Quarter Financial Performance (YoY) | Metric | Q2 2025 ($) | Q2 2024 ($) | Change ($) | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Net Sales | 2,838,225 | 3,390,205 | -551,980 | -16.28% | | Net Income | 626,826 | 956,225 | -329,399 | -34.45% | | EPS | 0.14 | 0.21 | -0.07 | -33.33% | First Half Financial Performance (YoY) | Metric | H1 2025 ($) | H1 2024 ($) | Change ($) | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Net Sales | 5,319,352 | 6,645,149 | -1,325,797 | -19.95% | | Net Income | 1,187,721 | 1,881,667 | -693,946 | -36.88% | | EPS | 0.26 | 0.41 | -0.15 | -36.59% | - Compared with the first quarter of 2025, second quarter net sales increased by 14% and net income increased by 12%[2] Management Commentary and Business Segments H1 2025 sales: pharmaceuticals and medical lubricants up, cosmetic ingredients down due to distributor overstock and soft Asian demand; Renacidin formulary expansion is a key initiative - Sales of pharmaceuticals increased by 11% and medical lubricants increased by 12% for the first half of 2025 compared to the same period in 2024[3] - Decrease in cosmetic ingredients sales in H1 2025 was attributable to reduced purchases by Ashland Specialty Ingredients (ASI), the largest cosmetic distributor, due to softer demand in Asia and an inventory overstock situation[3] - A new project is underway to include Renacidin, the most important pharmaceutical product, in additional drug formularies, with the goal of significantly increasing sales in coming years[3] - United-Guardian is a manufacturer of cosmetic ingredients, pharmaceuticals, medical lubricants, and sexual wellness ingredients[3] Financial Results for the Three and Six Months Ended June 30, 2025 and 2024 Unaudited consolidated income statements for Q2 and H1 2025 and 2024 detail key financial performance metrics Consolidated Statements of Income (Unaudited) | | 2025 (Three Months, $) | 2024 (Three Months, $) | 2025 (Six Months, $) | 2024 (Six Months, $) | | :--- | :--- | :--- | :--- | :--- | | Net sales | 2,838,225 | 3,390,205 | 5,319,352 | 6,645,149 | | Costs and expenses: | | | | | | Cost of sales | 1,340,854 | 1,561,090 | 2,463,930 | 3,117,580 | | Operating expenses | 694,050 | 602,777 | 1,326,785 | 1,171,642 | | Research and development expense | 107,868 | 111,660 | 222,262 | 214,642 | | Total costs and expenses | 2,142,772 | 2,275,527 | 4,012,977 | 4,503,864 | | Income from operations | 695,453 | 1,114,678 | 1,306,375 | 2,141,285 | | Other income (expense): | | | | | | Investment income | 70,573 | 100,007 | 155,260 | 198,080 | | Net gain (loss) on marketable securities | 24,576 | (9,501) | 36,926 | 31,995 | | Total other income | 95,149 | 90,506 | 192,186 | 230,075 | | Income before provision for income taxes | 790,602 | 1,205,184 | 1,498,561 | 2,371,360 | | Provision for income taxes | 163,776 | 248,959 | 310,840 | 489,693 | | Net income | 626,826 | 956,225 | 1,187,721 | 1,881,667 | | Earnings per common share (basic and diluted) | 0.14 | 0.21 | 0.26 | 0.41 | | Weighted average shares (basic and diluted) | 4,594,319 | 4,594,319 | 4,594,319 | 4,594,319 |