Neogen Corporation reported a decline in financial performance for the three months ended August 31, 2024, compared to the same period in 2023. Total revenues decreased to $216.964 million from $228.987 million, reflecting a 5% decline. This drop was attributed to a $9 million unfavorable foreign exchange impact and a $3 million decrease in business volume, particularly in genomics and shifts in product focus. Product revenues from the Food Safety segment fell to $150.777 million, down from $158.947 million, while the Animal Safety segment saw revenues decrease to $41.741 million from $45.454 million.
Gross profit also declined, totaling $104.926 million compared to $116.761 million in the prior year, resulting in a gross margin of 48.4%, down from 51.0%. Operating expenses increased to $102.669 million from $97.626 million, primarily due to higher compensation, shipping, and IT costs associated with a new enterprise resource planning system. Consequently, operating income plummeted to $2.257 million from $19.135 million, and the company reported a loss before taxes of $15.609 million, compared to a profit of $1.663 million in the previous year.
Neogen's net loss for the quarter was $12.609 million, a significant decline from a net income of $1.503 million in the same period last year. Basic net loss per share was $(0.06), compared to earnings of $0.01 in 2023. The company also experienced a decrease in comprehensive income, reporting a total comprehensive loss of $14.009 million compared to a gain of $8.258 million in the prior year.
As of August 31, 2024, Neogen's cash and cash equivalents stood at $120.477 million, down from $170.611 million at the end of May 2024. Total current assets decreased to $540.650 million from $589.233 million, while total liabilities fell to $1.368 billion from $1.405 billion. Total stockholders' equity slightly decreased to $3.135 billion from $3.144 billion.
Strategically, Neogen completed the acquisition of Corvium, Inc. in February 2023, with the final escrow balance released in Q3 fiscal 2024. The company is also preparing to adopt new segment reporting standards in fiscal year 2025 to enhance disclosure of segment expenses and performance measures. Despite facing challenges such as supply chain disruptions and inflation, Neogen is focused on improving operational efficiencies and addressing identified weaknesses in internal controls over financial reporting.
About NEOGEN CORP
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.