Q4 2024 Neogen Corp Earnings Call Transcript
Key Points
- Neogen Corp (NEOG) successfully relocated the former 3M sample handling product lines to their facility in Lexington, Kentucky, and is ramping up to full production levels.
- Total food safety core revenue grew in the mid-single-digit range, showing solid growth compared to the previous year.
- The USDA's Food Safety Inspection Service named Neogen's Molecular Detection System (MDS) as its primary screening method for Salmonella and Listeria in meat, eggs, and poultry.
- Launch of the Petrifilm automated reader, which automates the loading of Petrifilm plates, enhancing efficiency for high-volume labs.
- Neogen Corp (NEOG) expects core revenue growth in the mid-single-digit range for fiscal year 2025, with total revenue anticipated between $925 million and $955 million.
- Food production volumes remained mostly down on a year-over-year basis due to customer pressures.
- Core revenue in the animal safety segment declined by 3% compared to the prior year quarter.
- Worldwide genomics revenue was down mid-single digits on a core basis, particularly impacted by the shift away from small production animals in the US.
- Gross margin in the quarter decreased by 300 basis points from the same quarter a year ago, driven by costs related to distribution and logistics operations and higher inventory adjustments.
- Adjusted EBITDA margin declined by 370 basis points year-over-year, primarily due to the decline in gross margin and transaction FX impacts.
Good morning, ladies and gentlemen, and welcome to the Neogen Corporation fourth quarter 2024 earnings call. (Operator Instructions) This call is being recorded on Tuesday, July 30, 2024.
I would now like to turn the conference over to Bill Waelke. Please go ahead.
Thank you for joining us this morning for the discussion of the fourth quarter of our 2024 fiscal year. I'll briefly cover the non-GAAP and forward-looking language before passing the call over to our CEO, John Adent, who will be followed by our CFO, Dave Naemura. Before the market opened today, we published our fourth-quarter results as well as the presentation , with both documents available in the Investor Relations section of our website.
On our call this morning, we will refer to certain non-GAAP financial measures that we believe are useful in evaluating our performance. Reconciliations of historical non-GAAP financial measures are included in our earnings release and the presentation, slide 2 of
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