Neogen Reports 26% Increase in Revenues " border="0" ...

Tag : rodenticides

Neogen’s first quarter revenues, net income, and earnings pershare all represent quarterly records for the 26-year-old company.The quarter also marked the 62nd consecutive profitable quarterfrom operations for the company, and was the 66th of the past 71quarters when Neogen reported revenue increases as compared withthe previous year.
“Our first quarter again demonstrated our consistent deliveryof the exceptional performance investors have come to expect fromus,” said James Herbert, Neogen’s chief executiveofficer and chairman. “Our outstanding first quarter resultsare further evidence of the operational strength throughout Neogen.The strong growth we are reporting today is the result of theefficient assimilation of acquisitions made within the previousyear, and significant growth in our core product lines.”
In spite of incremental costs associated with integrating threeacquisitions during its last 12 months, Neogen’s operatingincome increased 24% in the first quarter of FY 2009 to$5,653,000—20% of the company’s quarterly revenues.
“We continue to make strides in leveraging sales obtainedthrough acquisitions that have enabled us to drive down our salesand marketing, and general and administrative expenses aspercentages of our total revenues.” said Lon Bohannon,Neogen’s president and chief operating officer. “A moresignificant highlight from our first quarter was the resurgence ofsame-store sales growth in our Animal Safety group and especiallywithin our Hacco subsidiary. Organic sales growth for Animal Safetywas over 13% for the quarter led by a 14% increase in domesticsales of Hacco’s existing rodenticide products.”
Bolstered by the acquisitions of Kane veterinary products (August2007), Rivard detectable veterinary needles (December 2007), andimmediately accretive DuPont disinfectants (June 30, 2008),Neogen’s Animal Safety Division led the company’s firstquarter revenue growth, with a sales increase of 45% from$9,150,000 in FY 2008 to $13,256,000 in FY 2009. Thedivision’s sales increase included growth in products sold toveterinarians through ethical market channels, growth in productssold to large food-animal producers and processors, and a continuedincrease in sales of diagnostic products.
Neogen’s Food Safety Division’s first quarter revenuesincreased 13% on a quarter-to-quarter comparison, from $13,759,000in the previous fiscal year to $15,549,000. The 13% increase inrevenues was significant because the Food Safety group faced adifficult comparison with an exceptional first quarter of the prioryear. All of the Food Safety Division’s increase was organicsales growth.
The current quarter’s Food Safety Division revenue increasewas led by sales of Neogen’s 10-year-old line of diagnostictests for food allergens, which recorded an exceptionally strong48% increase, with large increases in sales of diagnostic kits formilk, peanut, and egg allergens. The sales spike was driven by newcustomers, and a number of high-profile food recalls related tofood allergens.
Neogen’s sales of products used to detect dangerous foodbornepathogens, including E. coli O157:H7, Salmonella, and Listeria,continued their upward trend seen in recent quarters, and were up14% compared to last year. Sales of the company’s tests fornatural toxins increased by 12% in the quarter, led by increases insales of test kits for histamine, aflatoxin, and deoxynivalenol(DON). Going forward, sales of one of Neogen’s key productlines, its rapid diagnostics for the detection of DON in grains,should be bolstered by the release of the new Veratox® for DON2/3. The new USDA-approved test combines the ease and accuracy ofprevious versions of the venerable Veratox product line, butreturns results in about half the time of its predecessor.
Sales of disposable samplers used with Neogen’s AccuPoint ® ATP sanitation monitoring system increased 25% in the currentquarter compared to the same period last year. A recent independentmarket survey indicated more AccuPoint systems have been placed inthe last three years around the world than all of thecompetitors’ systems—combined.
International sales accounted for 42% of total first quarterrevenues and were helped by the June 2008 formation ofNeogen’s new subsidiary in Mexico to enhance distribution ofproducts in that country, and Central America. In addition, thecompany’s Scotland-based Neogen Europe subsidiary continuedits strong performance of recent quarters, recording organic growthof 20%, which included significant increases in sales of dehydratedculture media, and Neogen’s diagnostic products formycotoxins and histamine. Neogen’s popular histaminediagnostic is used by the seafood industry to ensure the safety oftheir products, particularly tuna.
Neogen Corporation develops and markets products dedicated to foodand animal safety. The company’s Food Safety Division marketsdiagnostic test kits to detect foodborne bacteria, natural toxins,genetic modifications, food allergens, drug residues, plantdiseases, and sanitation concerns, and dehydrated culture media.Neogen’s Animal Safety Division markets a complete line ofdiagnostics, veterinary instruments, veterinary pharmaceuticals,nutritional supplements, disinfectants, and rodenticides.