United-Guardian Reports 12% Increase in Net Sales for Fiscal Year 2024

United-Guardian, Inc. reported a 12% increase in net sales for the fiscal year ending December 31, 2024, reaching $12.2 million compared to $10.9 million in 2023. The growth was primarily driven by a 32% rise in sales of cosmetic ingredients, which accounted for approximately 45% of total sales, up from 38% in the previous year. The company's largest distributor, Ashland Specialty Ingredients (ASI), saw a 51% increase in orders, particularly benefiting from regained market share in China. However, sales of pharmaceutical products decreased by 5%, attributed to temporary manufacturing halts for Renacidin, a key product.

In terms of profitability, United-Guardian's gross profit margin improved to 53% in 2024 from 50% in 2023, largely due to the higher sales volume of cosmetic ingredients, which typically carry better margins. Operating expenses rose by 13% to $2.36 million, driven by increased sales and marketing costs, including the hiring of a new Marketing Director. Research and development expenses slightly decreased to $456,779, but the company anticipates a modest increase in 2025 to support innovation.

Strategically, United-Guardian discontinued its specialty industrial products line in July 2023 due to low sales and limited growth prospects. In October 2023, the company entered a distribution agreement with Brenntag Specialties for its new Natrajel line of sexual wellness ingredients, although no sales from this line were reported in 2024. The company expects to begin manufacturing and reporting sales from this product line in 2025.

Operationally, United-Guardian maintained a workforce of 25 employees, with 24 employed full-time. The company continues to focus on research and development, particularly in creating natural and environmentally friendly products, which aligns with market trends. The company also reported a decrease in accounts receivable, reflecting a reduction in sales during the fourth quarter of 2024, and a decrease in the allowance for credit losses.

Looking ahead, United-Guardian remains cautious about potential impacts from global supply chain instability and tariffs imposed on imports from various countries. The company is actively monitoring these developments and is optimistic about its growth prospects, particularly in the cosmetic and sexual wellness markets. The management's outlook suggests a commitment to enhancing product offerings and expanding market reach, while also navigating the challenges posed by external economic factors.