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Nov 30, 2020
Neogen Q2 2021 Earnings Report
Neogen's revenue increased, driven by growth in the animal safety segment, while net income slightly decreased due to strategic consulting expenses.
Key Takeaways
Neogen Corporation reported a 7% increase in revenue for the second quarter of fiscal year 2021, reaching $115 million. The animal safety segment saw a significant 13% increase in sales. Net income decreased slightly to $15.885 million, or $0.30 per share, compared to $16.276 million, or $0.31 per share, in the prior year, impacted by strategic consulting expenses.
Total revenue increased by 7% compared to the previous year's second quarter, reaching $115 million.
Animal Safety segment experienced a strong 13% sales increase, driven by demand for cleaners, disinfectants, and rodenticides.
Food Safety segment revenue increased by 1%, with growth in Soleris microbial testing system and Listeria Right Now test system offset by COVID-19 related disruptions.
Operating income increased to $19.245 million, or 16.7% of sales, compared to $18.272 million, or 16.9% of sales, in the prior year.
Neogen
Neogen
Neogen Revenue by Segment
Revenue by Segment
Food Safety Revenue
CapyFin.comAnimal Safety Revenue
CapyFin.com Forward Guidance
Neogen did not provide specific forward guidance in the provided text. The company is seeing signs of recovery with new product launches and strong sales increases in countries less affected by COVID-19.
Positive Outlook
- Successful new product launches.
- Strong sales increases across a diverse product portfolio.
- Recovery in countries less affected by COVID-19, including China and Australia.
- Increased sales in disinfectants and genomic products in China.
- Growth in companion animal genomic testing due to increased pet adoptions.
Challenges Ahead
- Global market disruptions from the resurgent COVID-19 pandemic.
- Sales of food safety products adversely affected by COVID-19.
- Currency headwinds reduced comparative revenues by approximately $1.2 million in the Food Safety segment.
- Revenues declined 22% in Brazil due to a large, one-time sale of insecticides in the prior year quarter.
- Interest income declined due to the drop in interest rates on marketable securities.
Revenue & Expenses
Visualization of income flow from segment revenue to net income