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Neogen reports 18% revenue increase
Date:9/24/2013

performance this quarter was adversely affected by a foreign currency translation loss primarily due to weakening of several currencies. This resulted in a negative pre-tax impact to the company of approximately $600,000."

The first quarter was the 86th of the past 91 quarters that Neogen reported revenue increases as compared with the previous year — including all consecutive quarters in the last eight years.

Sales of Neogen's Scotland-based Neogen Europe subsidiary increased 54% compared to the prior year's first quarter as a result of broad-based increases in sales of Neogen's food safety diagnostics, including test kits for mycotoxins, food allergens and meat speciation. The subsidiary's results were also due to increased success in sales of animal genomic testing services.

Sales of Neogen's Brazil- and Mexico-based subsidiaries also increased significantly on a quarter-to-quarter comparison, albeit from relatively smaller bases, as did sales of the company's food and animal safety products through distributors into international markets. For the quarter, Neogen's revenues from international sources represented 42.3% of its total revenues.

Sales of Neogen's line of test kits for food allergens and meat speciation continued to grow, increasing more than 30% in the quarter when compared to the previous year's first quarter. While food manufacturers have continued to increase testing to protect consumers, food allergens remain the single biggest reason for food recalls. The first quarter also saw a continuation of increased revenues from sales of test kits to verify meat speciation. Preventing the adulteration or substitution of meat or fish products with non-desirable or cheaper options is important for economic, regulatory, health and ethical reasons, especially where particular species of meat are prohibited by cultural or religious beliefs.

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SOURCE Neogen Corporation
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