Neogen Corporation Reports Revenue Decline and Increased Net Loss in Latest Financial Filing

Neogen Corporation reported a decline in financial performance for the three and nine months ended February 28, 2025, as detailed in its latest 10-Q filing. Total revenues for the third quarter were $220.98 million, down from $228.81 million in the same period last year, reflecting a decrease of approximately 3.6%. For the nine-month period, revenues also fell to $669.20 million from $687.43 million, a decline of about 2.7%. The company attributed this decrease to unfavorable foreign exchange impacts and discontinued product lines, although there was some growth in specific product categories, particularly in food quality and nutritional analysis.

The company's net loss for the third quarter was $10.96 million, compared to a loss of $2.02 million in the prior year, marking a significant increase in losses. For the nine months, the net loss escalated to $479.85 million, largely due to a goodwill impairment charge of $461.39 million recognized in the second quarter. This impairment was linked to challenges in the Food Safety segment, which has faced integration issues and market conditions that negatively impacted its financial performance.

Operationally, Neogen has been undergoing restructuring initiatives, particularly in its genomics business, which have resulted in a reduction of workforce and consolidation of facilities. The company reported a total employee headcount of 2,000 as of February 28, 2025, reflecting ongoing adjustments to align with market demands. Additionally, Neogen's international sales showed resilience, with revenues of $105.62 million in the third quarter, slightly up from $104.59 million year-over-year, although overall international sales for the nine months decreased due to currency headwinds.

Looking ahead, Neogen's management expressed cautious optimism about future growth, particularly in the Animal Safety segment, as they anticipate a recovery in demand. However, they acknowledged ongoing challenges, including the impact of inflation, geopolitical tensions, and the need to address material weaknesses in internal controls over financial reporting. The company is actively monitoring these factors and is committed to implementing necessary changes to improve its operational efficiency and financial stability.