Neogen Corp (NEOG, Financial) released its first-quarter 2024 results on October 10, 2023, revealing a significant increase in revenue and adjusted EBITDA. Despite the challenges faced, the company's performance was generally in line with expectations, according to Neogen’s President and CEO, John Adent.
Financial Performance and Business Highlights
Neogen Corp (NEOG, Financial) reported a 73% increase in revenues for the first quarter, reaching $229.0 million compared to $132.3 million in the prior year. The company's net income for the first quarter was $1.5 million, or $0.01 per diluted share, compared to $5.2 million, or $0.05 per diluted share, in the prior-year period. The decrease in net income was primarily due to interest expense and the amortization of acquisition-related intangibles, all related to the merger with the former 3M Food Safety Division.
Segment Performance
The Food Safety segment saw revenues of $166.3 million in the first quarter, an increase of 157.2% compared to $64.6 million in the prior year. The Animal Safety segment, on the other hand, reported revenues of $62.7 million in the first quarter, compared to $67.7 million in the prior year’s first quarter.
Financial Position
As of August 31, 2023, Neogen Corp (NEOG, Financial) had total cash and investments of $239.3 million and total outstanding debt of $900.0 million, along with committed borrowing headroom of $150.0 million.
Fiscal Year 2024 Outlook
Considering the first-quarter results and the typical seasonality of revenue, Neogen Corp (NEOG, Financial) continues to anticipate fiscal year 2024 revenue between $955 million and $985 million. Adjusted EBITDA is expected to be in a range of $235 million to $255 million.
Neogen Corp (NEOG, Financial) remains committed to fueling a brighter future for global food security through the advancement of human and animal well-being. The company's comprehensive solutions span the Food Safety, Livestock, and Pet Health & Wellness markets, making it a world leader in these fields.
