Neogen Corporation (NASDAQ: NEOG) has released its third-quarter 2024 results, reporting a revenue of $228.8 million. The company experienced a net loss of $(2.0) million, equivalent to $(0.01) per diluted share, while the adjusted net income stood at $26.4 million, or $0.12 per diluted share. Adjusted EBITDA for the quarter was $52.7 million.
In terms of revenue, Neogen saw an increase of 4.8% compared to the prior year, with core revenue, excluding certain impacts, showing a 6.2% growth. The gross margin for the quarter was 51.1%, up from 49.5% in the same period the previous year, primarily due to increased sales of higher-margin products in the food safety segment.
The food safety segment contributed revenues of $157.8 million, marking a 4.1% increase from the prior year. The animal safety segment also showed growth, with revenues of $71.1 million, up by 6.5% from the previous year.
However, the company faced operational inefficiencies affecting order fulfillment rates due to the integration of the former 3M food safety business, resulting in a slower-than-anticipated recovery of order fulfillment rates. As a result, the full-year revenue outlook has been adjusted to a range of $910 million to $920 million, with adjusted EBITDA expected to be in the range of $210 million to $215 million.
Neogen Corporation remains committed to rectifying the present level of inefficiencies and ultimately realizing the long-term benefits of the merger with the former 3M food safety division.
As of February 29, 2024, the company held total cash and investments of $168.4 million and total outstanding non-current debt of $900.0 million, with committed borrowing headroom of $150.0 million.
As a result of these announcements, the company's shares have moved 0.2% on the market, and are now trading at a price of $14.38. Check out the company's full 8-K submission here.
