Neogen reported on July 24 that both revenues and net income for the 2013 fiscal year established new all-time highs for the 31-year-old maker of food and animal safety products.
Net income for its 2013 fiscal year, which ended May 31, increased 21 percent from the previous year to $27.19 million. Net income in the fiscal year increased to $1.12 per share, compared to 2012's $0.94 per share. Neogen's revenues for its fiscal year 2013 increased 13 percent to $207,528,000, up from $184.046 million in the company's 2012 fiscal year.
Neogen's fourth-quarter revenues were $56.006 million, a 15 percent increase over revenues from FY 2012's final quarter. Net income in the fourth quarter increased 17 percent to $7,032,000 from $6,028,000 in 2012, or to $0.29 per share compared to $0.25 per share in 2012.
"I am pleased to report that we achieved our goal of doubling our annual revenues to over $200 million in the five years since we first reached $100 million in our 2008 fiscal year," said James Herbert, Neogen's CEO and chairman. "Not only did the year produce outstanding financial performance, but we also commercialized a number of internally developed products and made a couple of acquisitions that should help enhance future growth. While hitting $200 million is a nice achievement, we view it as a guidepost that we quickly move past, and not as a hitching post."
Neogen's gross margin increased to 52.8 percent of sales in its 2013 fiscal year, compared to 50.2 percent of sales for fiscal year 2012. The increase is the result of a shift in product mix toward higher-margin products, including food safety diagnostics, rodenticides and acquired products. Neogen reported operating income, expressed as a percentage of sales, of 19.6 percent for the 2013 fiscal year, compared to 18.3 percent in its prior fiscal year, largely as a result of the increased gross margin and higher revenues.
"We delivered a strong finish to a terrific fiscal year with a fourth quarter that saw both our Food Safety and Animal Safety divisions reporting revenue increases in excess of 10 percent," said Lon Bohannon, Neogen president and chief operating officer. "For the year, our consolidated revenue growth was broad-based, partially as a result of new products and product improvements from acquisitions, and our research and development team, and partially due to successful implementation of numerous sales and marketing programs. Prior investments in infrastructure and additional personnel paid off in fiscal-year 2013 and enabled us to deliver these strong results."
The fourth quarter was the 85th quarter of the past 90 quarters that Neogen reported revenue increases as compared with the previous year - including all consecutive quarters in the last eight years.
Neogen's revenue increase for fiscal 2013 was led by a more than 30 percent increase in sales of mycotoxin test kits and related laboratory equipment, as the company responded to large mycotoxin outbreaks in the United States and Europe in the 2012 growing season.