United-Guardian reported Q1 2025 earnings with revenue down 24% to $2.48m, net income down 39% to $560.9k, and EPS down to $0.12 from $0.20 in Q1 2024. The decrease in profit margin was driven by lower revenue, down to 23% from 28% in Q1 2024.
United-Guardian Inc. (UG) reported its first-quarter 2025 earnings, showing a substantial decline in financial performance. The company's revenue fell by 23.8% to $2.481 billion from $3.254 billion in the same period last year. Net income decreased by 39.4% to $560.89 million, or $0.12 per share, from $925.44 million, or $0.20 per share, in Q1 2024 [1][2].
The decrease in earnings was primarily attributed to a significant drop in cosmetic ingredients sales, which declined by 63% due to reduced orders from Ashland Specialty Ingredients (ASI) caused by excess inventory in China. However, the company noted positive developments in other segments, with medical lubricant sales increasing by 43% and pharmaceutical sales growing by 23% [2].
The company's earnings per share (EPS) fell from $0.20 in Q1 2024 to $0.12 in Q1 2025. The profit margin also declined from 28% in Q1 2024 to 23% in Q1 2025, primarily due to the revenue decrease [3].
President Donna Vigilante stated, "We are experiencing a slow start to 2025 compared to the beginning of 2024. While we saw positive performance from our medical lubricant and pharmaceutical businesses, the main reason for the decrease in sales and earnings was due to a decrease in our cosmetic ingredient business." She also expressed concerns about potential impacts from U.S. tariffs on imports from various countries [2].
United-Guardian is a manufacturer of cosmetic ingredients, pharmaceuticals, medical lubricants, and sexual wellness ingredients. The company's stock is listed on the NASDAQ under the ticker symbol UG.
References:
[1] https://www.rttnews.com/3537321/united-guardian-inc-q1-profit-declines.aspx
[2] https://www.stocktitan.net/news/UG/united-guardian-reports-first-quarter-v17dogk8xu19.html
[3] https://www.marketscreener.com/quote/stock/UNITED-GUARDIAN-INC-5138979/news/United-Guardian-Inc-Reports-Earnings-Results-for-the-First-Quarter-Ended-March-31-2025-49880992/
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