Neogen Corporation Reports $894.7 Million Revenue and $1.1 Billion Net Loss for Fiscal Year Ending May 31, 2025

Neogen Corporation reported a total revenue of $894.7 million for the fiscal year ending May 31, 2025, a decrease of 3.2% from $924.2 million in the previous fiscal year. The decline was attributed to a $24.3 million unfavorable impact from foreign exchange rates and a $3.9 million reduction due to discontinued product lines. The company's net loss for the year was $1.1 billion, significantly impacted by a goodwill impairment charge of $1.06 billion, compared to a net loss of $9.4 million in the prior year. The gross profit margin also decreased to 47.1% from 50.2%, primarily due to lower sales volumes, higher manufacturing costs, and elevated inventory write-offs.

In terms of operational changes, Neogen completed the acquisition of 3M's Food Safety Division in September 2022, which has since been integrated into its Food Safety segment. This acquisition is expected to enhance Neogen's product offerings and market reach. However, the integration process has faced challenges, including shipment delays and production inefficiencies, particularly in the sample collection product line. The company has also announced plans to divest its global Cleaners and Disinfectants business, which was completed in July 2025 for $130 million, with proceeds aimed at debt repayment.

Neogen's international sales accounted for 50.2% of total revenues, reflecting a slight increase from 49.7% in the previous year. The company has maintained a global presence, with operations in 28 countries, and continues to focus on expanding its market share in regions such as Latin America and Europe. The total employee count as of May 31, 2025, was 2,974, with 975 employees dedicated to sales and marketing functions. The company has emphasized its commitment to research and development, with plans to allocate 2% to 3% of total revenues annually to this area.

Looking ahead, Neogen's management has expressed optimism about future revenue growth, particularly in the Animal Safety segment, as market conditions stabilize. The company aims to enhance its product offerings and operational efficiencies while navigating ongoing challenges such as inflation, geopolitical tensions, and supply chain disruptions. Neogen's strategic focus will include the successful integration of acquired businesses, the development of new products, and the expansion of its international sales efforts.