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Aug 31, 2021
Neogen Q1 2022 Earnings Report
Neogen's Q1 2022 results showcased resilience with record revenue and double-digit organic sales growth in both Food Safety and Animal Safety segments.
Key Takeaways
Neogen Corporation announced record revenue of $128.305 million for the first quarter of fiscal year 2022, a 17% increase compared to the previous year. Both the Food Safety and Animal Safety segments experienced double-digit organic sales growth. Net income increased to $17.077 million, or $0.16 per share.
Revenues increased by 17% compared to the prior year's first quarter.
Food Safety and Animal Safety segments both achieved double-digit organic sales growth for the third consecutive quarter.
Net income rose to $17.077 million, or $0.16 per share, compared to $15.860 million, or $0.15 per share, in the previous year.
Gross margins improved to 46.8% due to higher margin product sales within the Food Safety segment.
Neogen
Neogen
Neogen Revenue by Segment
Revenue by Segment
Food Safety Revenue
CapyFin.comAnimal Safety Revenue
CapyFin.com Forward Guidance
Neogen is optimistic for the remainder of the year due to strong results and excitement surrounding new Megazyme product offerings.
Positive Outlook
- Strong results showcase Neogen's resilience.
- Growth across almost all core product lines.
- Tremendous excitement surrounding new Megazyme product offerings.
- Positive start to the new fiscal year.
- International operations performed well during the quarter.
Challenges Ahead
- Challenges due to supply chain issues.
- Labor shortages.
- Higher product costs caused by the COVID-19 pandemic.
- Drug residue test kit sales declined by 22% due to the prior year termination of a European distribution agreement and competitive pressure within the marketplace.
- Revenues at the company’s Brazilian operations declined by 15%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income