The company, which also supplies the pharmaceutical market, said that overall revenues increased from $11.20m in 2006 to reach $11.88m in 2007, an increase of 6 percent.
But the company's net profit outperformed the relatively modest sales increase, with net income rising from $2.73m in 2006 to $3.54m in 2007, an increase of 29.6 per cent.
Likewise, the company's income from continuing operations was up 27 percent to reach $3.43m.
Discontinuing operations boosted by sale of subsidiary
Income from discontinuing operations was positively impacted by the sale of its Eastern Chemical subsidiary, which manufacturers organic fine chemicals.
"As a result of an almost 10 percent increase in revenue from our personal care products, as well as our success in reducing costs, we were able to increase our earnings by per share from continuing operations by 28 percent over last year," said Ken Globus, president of United-Guardian.
However, the company did warn over its future financial performance, citing the fact that rising material costs are hampering margins, as well as pointing to the fact that further price hikes for materials are expected to be felt during the course of the year.
In recent months other leading global ingredients players, including Croda and Rohm and Haas, have all announced significant price increases.
Ingredients players being hit by rising oil prices
Indeed Croda recently revealed that the average price of its ingredients rose by 12.3 percent during the course of 2007.
The rising production costs are largely being blamed on increased oil prices, which are affecting manufacturing at all levels and stages of the production process.
This coincides with oil prices hitting record levels in the last few weeks - peaking at $104.75 a barrel this week.
While ingredients suppliers have been able to increase their prices, competition is so fierce in the market for finished goods that cosmetics manufacturers have been forced to absorb the increased cost of ingredients.
Looking to the future, the company also added that it wants to develop new products, primarily for the personal care market, as well as expanding its footing in international markets.
