United-Guardian, Inc. (NASDAQ:UG) released its financial results for the second quarter and first half of 2023. Sales for the six-month period ended June 30 decreased from $7,518,535 in 2022 to $5,220,623 in 2023. Net income decreased from $1,544,789 ($0.34 per share) to $1,217,175 ($0.26 per share). Second-quarter sales decreased from $3,626,177 to $2,650,299, with net income decreasing from $633,324 ($0.14 per share) to $461,094 ($0.10 per share).
Said President Donna Vigilante, “The sales decrease for both the second quarter and the first six months of 2023 was primarily due to a decrease in sales of our cosmetic ingredients, which was partially offset by an increase in sales of Renacidin®, the Company’s principal pharmaceutical product, which increased by 7%. The distributor responsible for marketing our Lubrajel® line of cosmetic ingredients in China experienced decreased demand due to increased competition in China from lower-priced competitive products, especially those from Asian producers, along with slow post-COVID economic recovery in China.
“In addition, customers are maintaining lower inventory levels and changing to just-in-time inventory management, which negatively impacted our sales. We are evaluating various options to increase our sales both in China and in other markets, and are continuing to work closely with our marketing partners to develop new strategies to remain competitive while growing our market share. We are hopeful that these efforts, along with China’s re-opening progress, will result in an increase in sales going forward.”
United-Guardian is a manufacturer of cosmetic ingredients, pharmaceuticals, and medical lubricants.
UG closed Thursday trading at $7.73.
