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Shares of United-Guardian, Inc. UG have slipped 9.6% since reporting results for 2024. This compares with the S&P 500 index’s 1.9% growth over the same time frame. Over the past month, the stock has lost 11% compared with the S&P 500’s 1.5% decline.
Revenue & Earnings Growth From Prior Year
United-Guardian reported a 12% year-over-year increase in net sales for 2024, rising from $10.89 million in 2023 to $12.18 million. Net income rose 26% to $3.25 million, or $0.71 per share, from $2.58 million, or $0.56 per share, in the previous year.
Income from operations increased 27% year over year to $3.65 million, whereas income before income taxes rose 26% to $4.11 million. The company also reported a 30% increase in investment income, improving its bottom line.
United-Guardian, Inc. Price, Consensus and EPS Surprise
United-Guardian, Inc. price-consensus-eps-surprise-chart | United-Guardian, Inc. Quote
Segment Performance & Business Drivers
Sales of cosmetic ingredients, one of the company's primary product categories, increased 32% year over year in 2024. This surge was attributed to a rise in purchase orders from United-Guardian’s largest distributor, who cited improved demand in China. Management noted that market share gains at key accounts in the region supported this growth. Medical lubricant sales also climbed 16%, driven by increased demand from a major contract manufacturer in China.
By contrast, pharmaceutical sales fell 5% year over year due to a supply disruption of Renacidin, United-Guardian’s leading pharmaceutical product. The issue emerged at the end of 2023 and persisted into the first quarter of 2024. Though the company resumed normal supply levels later in the year, the earlier disruption curtailed full-year sales. Management expressed optimism that Renacidin sales could rebound in 2025.
Management Commentary
UG’s president, Donna Vigilante, highlighted the strength of the cosmetics and medical lubricant segments as key contributors to the company’s revenue and profit growth in 2024. Vigilante emphasized that the strong performance in China underscored the company’s ability to regain and expand its market position abroad.
While the supply issue with Renacidin was acknowledged as a drag on pharmaceutical sales, the company's leadership appears confident that this was a temporary setback. Management indicated positive expectations for a return to historical sales levels for Renacidin in the current year.
Financial Position & Key Metrics
United-Guardian ended the year with a healthy balance sheet. Total assets rose to $13.80 million from $12.92 million at the end of 2023. Current assets moved up to $12.67 million from $12.25 million. Total liabilities were $1.91 million, up from $1.53 million, while stockholders’ equity increased to $11.88 million from $11.39 million, reflecting retained earnings from the profitable year.