Neogen posts 17 per cent more revenue than previous year in Q4
The fourth-quarter net income was $15,760,000
Image credit: Neogen Corporation
Neogen Corporation has announced the results for its fourth quarter and full 2021 fiscal year, which ended May 31, 2021. Revenues for the fourth quarter increased 17 per cent to $127,425,000, compared to $109,074,000 in the previous year, and revenues for the full fiscal year were $468,459,000, compared to the prior year's $418,170,000, an increase of 12 per cent.
The fourth quarter was the 116th of the past 122 quarters that Neogen reported revenue increases as compared to the same period in the previous year.
Fourth-quarter net income was $15,760,000, or $0.15 per share, compared to the prior year's $16,347,000, or $0.15 per share. Net income for the full 2021 fiscal year was $60,882,000, or $0.57 per share, compared to the prior year's $59,475,000, or $0.56 per share. Prior year fourth quarter results benefitted from temporary cost actions taken to mitigate the impact of COVID-19, which amounted to approximately $2 million pre-tax ($0.01 per share); additionally, non-recurring corporate development expenditures of approximately $3.1 million pre-tax ($0.02 per share) were incurred in the second and third quarters of the current fiscal year.
For the fiscal year 2021, the overall gross margin as a percentage of sales was 45.9 per cent, a decrease from 46.9 per cent in the prior fiscal year. Margins were negatively impacted during the year by product mix shifts towards lower-margin products, such as cleaners and disinfectants, and increases in supply chain costs, particularly on both domestic and international shipments.
Neogen's Animal Safety segment reported revenues of $63,324,000 in the fourth quarter, an increase of 16 per cent compared to $54,756,000 in the previous year's fourth quarter. This increase was driven by strong growth in the veterinary instruments line (50 per cent), primarily needles and syringes, as well as in the animal care line (51 per cent) of antibiotics, vitamin injectables and supplements, as companion animal spending has increased significantly during the COVID-19 pandemic.
For the full fiscal year, the Animal Safety segment reported revenues of $234,215,000, compared to $205,479,000 in the fiscal year 2020, an increase of 14 per cent, on strength of the animal care (31 per cent), veterinary instruments (16 per cent), and rodent control (42 per cent) lines, partially offset by lower sales of cleaners, disinfectants and protective wear from the prior year.
“The currency headwinds we had been facing for most of the fiscal year reversed in the fourth quarter, resulting in comparative revenues which were $3.3 million higher on a constant currency basis,” said Steve Quinlan, Vice President and Chief Financial Officer, Neogen.