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Neogen
🇺🇸 NASDAQ:NEOG
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Aug 31, 2023

Neogen Q1 2024 Earnings Report

Neogen's Q1 2024 results were announced, featuring a significant revenue increase driven by the 3M Food Safety Division merger, alongside a decrease in net income due to related expenses.

Key Takeaways

Neogen reported a 73% increase in revenue to $229.0 million, driven by the acquisition of the 3M Food Safety Division. However, net income decreased to $1.5 million, or $0.01 per diluted share, due to increased interest expense and amortization of acquisition-related intangibles. Adjusted EBITDA increased by 93.8% to $52.4 million, with a margin of 22.9%.

Revenue increased by 73.0% year-over-year to $229.0 million, primarily due to the acquisition of the 3M Food Safety Division.

Net income decreased to $1.5 million, or $0.01 per diluted share, impacted by expenses related to the 3M Food Safety merger.

Adjusted EBITDA rose by 93.8% to $52.4 million, with a margin of 22.9%.

Food Safety segment revenue increased significantly, while the Animal Safety segment experienced a core revenue decline due to destocking.

Total Revenue
$229M
Previous year: $132M
+73.0%
EPS
$0.11
Previous year: $0.15
-26.7%
Adjusted EBITDA Margin
22.9%
Gross Profit
$117M
Previous year: $62.3M
+87.5%
Cash and Equivalents
$179M
Previous year: $348M
-48.6%
Free Cash Flow
-$7.62M
Total Assets
$4.56B
Previous year: $977M
+366.7%

Neogen

Neogen

Neogen Revenue by Segment

Forward Guidance

Neogen anticipates fiscal year 2024 revenue between $955 million and $985 million, while Adjusted EBITDA continues to be expected in a range of $235 million to $255 million. The Company also continues to expect capital expenditures to be approximately $130 million, including approximately $100 million related specifically to the integration of the former 3M Food Safety Division.

Positive Outlook

  • Fiscal year 2024 revenue is anticipated to be between $955 million and $985 million.
  • Adjusted EBITDA is expected to be in the range of $235 million to $255 million.
  • Improved end-market environment expected in the second half of the year.
  • Capital expenditures are projected to be approximately $130 million.
  • Integration of the former 3M Food Safety Division is progressing well.

Challenges Ahead

  • Typical seasonality of revenue may impact performance.
  • Capital expenditures include approximately $100 million related to the integration of the former 3M Food Safety Division.
  • Animal Safety business experienced continued destocking.
  • Weakness in China impacted pro forma growth in the former 3M Food Safety Division.
  • The Indicator Testing, Culture Media & Other product category experienced a core revenue decline.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Neogen