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Neogen Corp. Reports Higher Quarter Revenues, Earnings
USAgNet - 09/27/2021

Neogen Corporation announced the results of the first quarter of its 2022 fiscal year, which ended August 31. Revenues were $128 million, a 17% increase compared to the previous year's first quarter revenues of $109 million. The company's Food Safety and Animal Safety segments each recorded double-digit increases in organic sales in the first quarter, representing the third straight quarter of double-digit organic growth at both segments.

This quarter marked the 117th of the past 123 quarters that Neogen has reported revenue increases compared to the same period in the prior year.

"As the world continues to weather the COVID-19 pandemic, our strong results showcase Neogen's resilience and perseverance," said John Adent, Neogen's President and Chief Executive Officer. "I am pleased that we are reporting growth across almost all of our core product lines. Additionally, our Food Safety sales team has seen tremendous excitement surrounding our new Megazyme product offerings, which have now been integrated into our product portfolio. This positive start to our new fiscal year makes us optimistic for the remainder of the year."

Gross margins were 46.8% of sales in the first quarter of the fiscal year, compared to 46.0% recorded in the same period a year ago, due to sales of higher margin products within the Food Safety segment.

First quarter operating expenses increased by 22% over the prior year's first quarter; in last year's first fiscal quarter, the company took a number of cost reduction actions due to the economic uncertainty resulting from the COVID-19 pandemic, totaling approximately $2.5 million.

As business conditions improved through the remainder of fiscal 2021, spending returned to pre-pandemic levels. Operating income for the quarter was $21,727,000, an increase of 15%, compared to $18,895,000 a year ago. Operating income continues to be impacted by higher costs in many areas, particularly freight, due to the ongoing effects of the COVID-19 pandemic.

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