Neogen positioned for growth

NEOGEN Corp. has reported increased earnings and revenues for its fiscal 2013 third quarter and first nine months, with revenues increasing for the 32nd consecutive month.

Neogen attributed its results to increased market share, new products and sales from recent acquisitions.

Its results are shown in the Table.

For its animal products business, Neogen said revenues from genomics testing increased 20% in the third quarter from the year before due to increased samples from existing customers, including beef cattle producers, and increased marketing efforts in Brazil and Europe.

The company said sales remained strong for Uniprim, an antibacterial for use against a broad range of infections in animals, as well as for veterinary detectable D3 Needles.

Neogen said its line of rodenticides continued to rebound well after regulatory changes in fiscal 2012 caused a decline in rodenticide sales.

For its food safety business, Neogen said revenues from food allergen tests increased in the third quarter as food processors continued implementing steps to be in compliance with the Food Safety Modernization Act of 2011 and to prevent contamination of non-allergenic products with food allergens.

Neogen said sales of test kits for meat speciation -- and complementary laboratory services at its facilities in Scotland -- more than tripled as the company responded to the scandal in Europe in which ground beef was found to contain horse meat and pig meat. Consequently, the company said sales at its Neogen Europe subsidiary increased 18% over the year before.

The company said sales also increased significantly for tests to detect histamine, a toxin that develops post-harvest in certain kinds of fish, especially tuna, if they are mishandled.

Neogen chief financial officer Steve Quinlan said the company's growth has provided a balance sheet that "positions us well to pursue all available avenues of growth, including further synergistic acquisitions."

Neogen, headquartered in Lansing, Mich., develops and markets products dedicated to animal and food safety. The company reported fiscal 2012 revenues that totaled $184.0 million.

Volume:85 Issue:14