United-Guardian, Inc. reported its financial results for the third quarter and the first nine months of 2024, showing notable growth in net sales and profitability compared to the same periods in 2023. For the three months ended September 30, 2024, net sales reached $3,060,113, a slight increase of $2,595 (less than 1%) from $3,057,518 in Q3 2023. In contrast, net sales for the nine months ended September 30, 2024, totaled $9,705,262, reflecting a significant increase of $1,427,121 (17%) from $8,278,141 in the prior year.

The company's income from operations for Q3 2024 was $949,128, up from $721,872 in Q3 2023, while net income rose to $865,484 from $626,756 in the same quarter last year. For the nine-month period, income from operations increased to $3,090,413 from $2,071,766, and net income grew to $2,747,151 from $1,843,931. Earnings per share also improved, with basic and diluted EPS for Q3 2024 at $0.19, compared to $0.14 in Q3 2023, and for the nine months, EPS increased to $0.60 from $0.40.

The company’s total costs and expenses for Q3 2024 decreased to $2,110,985 from $2,335,646 in Q3 2023, contributing to improved profitability. The cost of sales as a percentage of sales decreased to 46% in Q3 2024 from 57% in Q3 2023, attributed to a higher proportion of cosmetic ingredient sales, which carry better margins.

In terms of product performance, cosmetic ingredient sales increased by 8% in Q3 2024, while pharmaceutical product sales saw a decline of 6%. The decrease in pharmaceutical sales was primarily due to a temporary shutdown of the contract manufacturer for Renacidin, which experienced a 10% drop in gross sales for Q3. The company also discontinued its specialty industrial products line after Q2 2023 due to low sales volume.

On the balance sheet, total assets as of September 30, 2024, were $13,254,380, up from $12,922,838 at the end of 2023. Current assets increased to $12,484,639, while cash and cash equivalents decreased significantly to $2,441,916 from $8,243,122. Marketable securities, however, rose to $7,054,469 from $851,318, reflecting a strategic shift in investment.

The company continues to focus on research and development, particularly in creating new premium ingredients for the cosmetic and healthcare markets, emphasizing natural and environmentally friendly materials. Despite ongoing global supply chain challenges, United-Guardian has not reported significant delays or increased shipping costs. The company remains committed to its growth strategy, including the recent agreement to market a new line of sexual wellness ingredients, with sales expected to commence in 2025.