Neogen Q2 2024 Earnings Report
Key Takeaways
Neogen Corporation reported Q2 2024 revenue of $229.6 million, a slight decrease of 0.2% year-over-year. The company experienced a net loss of $3.5 million, or $(0.02) per diluted share, but an adjusted net income of $24.9 million, or $0.11 per diluted share. The results reflect ongoing integration efforts and stabilization in end markets, with an updated full-year outlook provided.
Revenue reached $229.6 million, slightly down by 0.2% compared to the previous year.
Net loss amounted to $3.5 million, or $(0.02) per diluted share.
Adjusted net income was $24.9 million, or $0.11 per diluted share.
The company is updating its full-year outlook, anticipating slower improvements in end markets.
Neogen
Neogen
Neogen Revenue by Segment
Forward Guidance
Neogen is updating its full-year outlook, expecting revenue to be in the range of $935 million to $955 million, with Adjusted EBITDA in the range of $230 million to $240 million. Capital expenditures are still expected to be approximately $130 million, including approximately $100 million related specifically to the integration of the former 3M Food Safety Division. Improvements in its primary end markets are likely to happen at a slower pace than originally anticipated.
Positive Outlook
- Integration of the former 3M Food Safety business is progressing with notable milestones achieved.
- Order flows in the Food Safety segment have remained stable, indicating core growth.
- Solid core growth was observed in Petrifilm, with accelerated growth in Asia.
- Destocking by distributors in the Animal Safety segment is moderating.
- Inflation appears to be easing, potentially leading to increased food production volumes.
Challenges Ahead
- Improvements in end markets are expected to happen at a slower pace than originally anticipated.
- The strategic shift in focus of the Genomics business is creating incremental headwinds.
- Destocking by distributors in the Animal Safety segment continued.
- The domestic Genomics business experienced a decline due to customer attrition.
- The Animal Care & Other product category experienced a core revenue decline due largely to lower sales of small-animal supplements and wound-care products.
Revenue & Expenses
Visualization of income flow from segment revenue to net income