UG Reports Yearly Q3 Profit Drop Due to Sluggish Cosmetics Sales, Stock Slips 10%

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United-Guardian, Inc. (UG) reported a 10% decline in its stock price following its third-quarter earnings report for 2025. The company’s net sales for the quarter ended September 30, 2025, fell 26% to $2.26 million, down from $3.06 million in the same period last year. Net income dropped to $268,441, resulting in earnings per share (EPS) of 6 cents, a 68% decrease from 19 cents a year ago.

For the first nine months of 2025, net sales decreased 22% to $7.58 million, while net income fell to $1.46 million and EPS decreased by approximately 47% to 32 cents. The sales decline was primarily driven by a downturn in the cosmetic ingredients sector, attributed to reduced purchases by Ashland Specialty Ingredients, United-Guardian’s largest marketing partner.

In contrast, pharmaceutical product sales increased by 10% and medical lubricants by 6%. Management remains cautiously optimistic for future growth, emphasizing strategic initiatives including the expansion of its pharmaceutical product Renacidin, and broader distribution arrangements to diversify revenue sources.

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