Neogen Q3 Revenue Falls 4.4% to $211.2M; Food Safety Up 2.6%
Neogen’s third-quarter revenue fell 4.4% year-on-year to $211.2 million, driven by a 20.1% drop in Animal Safety sales while Food Safety revenue climbed 2.6% to $156.7 million. Adjusted EBITDA held at $48.2 million with a 22.8% margin as gross margin declined 300 basis points to 46.9% on manufacturing transition costs.
1. Third-Quarter Financial Highlights
Neogen reported third-quarter revenue of $211.2 million, a 4.4% decrease from the prior year, driven by a 0.1% core increase; net loss was $17.0 million, or $0.08 per share, compared with a $10.9 million loss, or $0.05 per share, in the same quarter last year.
2. Food Safety Segment Growth
Food Safety segment revenue rose 2.6% to $156.7 million, led by an 11.0% increase in Indicator Testing & Culture Media and a 5.5% gain in Bacterial & General Sanitation, resulting in a 4.0% core revenue growth for the segment year-over-year.
3. Animal Safety Segment Challenges
Animal Safety segment revenue fell 20.1% to $54.5 million largely due to third-party supplier disruptions, with Biosecurity Products down 37.0% and Animal Care & Other down 43.3%, contributing to an 8.7% core revenue decline in the segment.
4. Margins and Adjusted EBITDA Performance
Gross margin narrowed to 46.9% from 49.9%, driven by transition costs in Petrifilm manufacturing and tariff impacts; excluding integration costs, adjusted gross margin improved to 51.7%, and adjusted EBITDA reached $48.2 million, delivering a 22.8% margin.