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Nov 30, 2023
Neogen Q2 2024 Earnings Report
Neogen's Q2 2024 results were announced, revealing a slight decrease in revenue but progress in integrating the former 3M Food Safety business.
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
Revenue by Segment
Food Safety Revenue
CapyFin.comAnimal Safety Revenue
CapyFin.com 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