ImmuCell Reports Strong Q1 Growth Amid Rising Sales and Profitability

Shares of ImmuCell Corporation (ICCC) have risen by 3.9% since the company released its first-quarter results for 2025. This increase is in contrast to the S&P 500 index, which saw a 5.5% gain during the same period. Over the last month, ImmuCell’s stock jumped 11.2%, while the S&P 500 rallied by 13.5%.

Revenue and Earnings Growth

For the first quarter of 2025, ImmuCell reported impressive results, achieving a record $8.1 million in product sales. This reflects an 11% increase from $7.3 million in the same quarter last year, continuing the positive momentum established in late 2024. The company also turned a net income of $1.45 million, a significant turnaround from a net loss of $438,000 in the previous year’s quarter. This improvement came from sales growth and expanded gross margins. Earnings per share rose to 16 cents, up from a loss of 6 cents per share in the comparable quarter last year.

Performance Metrics

ImmuCell Corporation price-consensus-eps-surprise-chart | ImmuCell Corporation Quote

Gross margin improved to 42%, an increase from 37% in the fourth quarter of 2024, and significantly higher than the margin reported a year ago due to reduced scrap and contamination costs. Adjusted EBITDA for the first quarter amounted to $2.3 million, a substantial increase from $458,000 in the previous year’s quarter. For the trailing 12 months ending March 31, 2025, adjusted EBITDA totaled $3.3 million, recovering from a loss of $280,000 in the comparable period.

Product Performance

First Defense, ImmuCell’s key product line for preventing scours in calves, accounted for the majority of sales. The Tri-Shield product—which targets E. coli, coronavirus, and rotavirus—made up 71% of First Defense sales during the quarter. Management has noted an improvement in customer reach due to expanded production capacity and diversified delivery formats, such as gel tubes and a new bulk powder product set to launch.

Management Insights

CEO Michael Brigham stated that the company has grown larger and more complex, primarily due to the success of First Defense and ongoing investments in production capacity. Annualized manufacturing capacity has been increased to support $30 million in sales. Brigham also indicated that previous contamination issues have been addressed, with no incidents reported since April 2024.

CFO Tim Fiori emphasized the importance of cost control and operational efficiency while managing higher sales volumes. He pointed out that gross margin expansion and improved adjusted EBITDA are critical for long-term profitability, particularly since many fixed facility and labor costs are already established.

Factors Behind Profitability

The positive shift in profitability and margins is attributed to operational stability, increased manufacturing capacity, and rising sales volumes. Past contamination issues had previously led to increased scrap costs, disrupting inventory flow.

ImmuCell has operated without any contamination incidents for over a year, allowing for improved yields and efficiencies in production. The demand for Tri-Shield has also surged, showcasing its effectiveness compared to traditional vaccines. A strengthened sales team, including four regional managers and a marketing director, has further bolstered sales efforts. The backlog of orders stands at $4 million as of March 31 and decreased to $3.4 million in early May.

Future Outlook

ImmuCell believes that the reduction in backlog and enhanced production capabilities will support continued sales growth. The company anticipates valuable insights from the investigational use of its Re-Tain product, although full FDA approval remains pending due to delays in manufacturing inspections. The investigational phase will aid in collecting real-world performance data.

Strategic Developments

The company has temporarily halted a $4 million investment aimed at bringing the formulation and aseptic filling of Re-Tain in-house. This initiative may be revisited once more clarity on FDA licensing timelines is achieved.

In summary, ImmuCell’s first-quarter performance demonstrated a strong operational recovery and notable financial improvement, primarily driven by ongoing demand for its core products and enhanced operational execution following prior setbacks.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.