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 coul ...

Core Insights - United-Guardian, Inc. reported a decline in both net sales and net income for the first quarter of 2025, with net sales at $2.48 million, down 24% from $3.25 million year-over-year, and net income falling 39% to $560,895 or 12 cents per share from $925,442 or 20 cents per share [2][6] Business Segment Performance - The cosmetic ingredients segment experienced a significant decline, with sales dropping 63% year-over-year to $698,998 from $1.88 million, primarily due to a 74% reduction in orders from its largest distributor, Ashland Specialty Ingredients [3] - Pharmaceutical sales rebounded, with net sales increasing 23% to $1.17 million from $950,323 in the previous year, driven by the normalization of Renacidin supply, which saw gross sales rise 38% year-over-year to $1.23 million [4] - Medical lubricant sales grew 43% year-over-year to $613,671, benefiting from increased demand in India and China, making it the strongest performing segment [5] Management Commentary - The company's president acknowledged the challenging start to the year, attributing revenue shortfalls to the cosmetic ingredient business but highlighted the strength in medical lubricants and pharmaceuticals as positive signs [6] - Concerns were raised regarding evolving trade policies and tariffs by the U.S. government, which could introduce uncertainty for product lines tied to China markets, although the company is monitoring these risks [7] Financial Metrics - Cost of sales decreased to $1.12 million from $1.56 million year-over-year, improving as a percentage of revenues to 45% from 48% [8] - Operating expenses rose 11% to $632,735 due to higher payroll and marketing costs, while research and development expenses also increased by 11% to $114,394 [8] - Investment income and gains on marketable securities fell to $97,037 from $139,569 a year earlier, attributed to lower interest income and reduced unrealized gains [9] Future Outlook - The company expressed confidence in its long-term strategy, particularly in product development and market expansion, with plans to begin manufacturing and sales of the Natrajel product in 2025 [10] - In February 2025, United-Guardian expanded its partnership with Azelis Group NV to include South Korea and broadened coverage in the U.K. and Ireland [11]

Financial Performance - United-Guardian, Inc. reported a decrease in first quarter sales from $3,254,944 in 2024 to $2,481,127 in 2025, representing a decline of approximately 23.7% [1][4] - Net income also decreased from $925,442 ($0.20 per share) in 2024 to $560,895 ($0.12 per share) in 2025, reflecting a decline of about 39.3% [1][5] Business Segment Performance - The medical lubricant and pharmaceutical segments showed positive performance, with sales increasing by 43% and 23% respectively in the first quarter of 2025 compared to the same period in 2024 [2] - Conversely, sales in the cosmetic ingredient segment decreased significantly by 63% in the first quarter of 2025, primarily due to reduced orders from Ashland Specialty Ingredients (ASI) [2] Operational Insights - The decrease in orders from ASI was attributed to excess inventory in China that needed to be worked off and the timing of product orders, although ASI confirmed no significant loss of business or customers [2] - The company expressed concerns regarding potential impacts from tariff announcements by the U.S. federal government on imports, indicating uncertainty in future operations and financial conditions [2]

Core Viewpoint - United-Guardian, Inc. reported improved financial results for 2024, driven by strong sales in cosmetic ingredients and medical lubricants, despite challenges in the pharmaceutical segment due to supply disruptions [14]. Revenue & Earnings Growth From Prior Year - The company achieved a 12% year-over-year increase in net sales, rising from $10.89 million in 2023 to $12.18 million in 2024 [2]. - Net income increased by 26% to $3.25 million, or $0.71 per share, compared to $2.58 million, or $0.56 per share, in the previous year [2]. Segment Performance & Business Drivers - Sales of cosmetic ingredients surged by 32% year over year, attributed to increased purchase orders from the largest distributor and improved demand in China [4]. - Medical lubricant sales rose by 16%, driven by demand from a major contract manufacturer in China [4]. - Pharmaceutical sales declined by 5% due to a supply disruption of Renacidin, which affected sales in the first quarter of 2024 [5]. Management Commentary - The president of United-Guardian highlighted the strong performance in the cosmetics and medical lubricant segments as key contributors to revenue and profit growth [6]. - Management expressed optimism regarding the recovery of Renacidin sales in 2025 following the supply issues [7]. Financial Position & Key Metrics - Total assets increased to $13.80 million from $12.92 million, while current assets rose to $12.67 million from $12.25 million [8]. - Total liabilities increased to $1.91 million from $1.53 million, and stockholders' equity grew to $11.88 million from $11.39 million [8]. Factors Influencing Financial Results - Improved financial performance was driven by increased sales volumes in higher-margin product categories and controlled operating expenses [10]. - Investment income contributed positively to net income, reflecting a favorable interest rate environment [11]. - The decline in pharmaceutical sales highlighted the company's exposure to supply-chain volatility, but management indicated that these issues are now resolved [12]. Other Developments - The company maintained its focus on organic growth across its core business lines without changes in strategic direction or corporate structure [13].