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Neogen has released its earnings report for the first quarter of its 2017 fiscal year, which ended August 31. Here are 6 things you need to know:
- Revenues were $83.6 million, a 12 percent increase compared with the same quarter last year.
- Net income increased 6 percent to $9.9 million, or $0.26 per share, from the previous year’s first quarter.
- Revenues from Neogen’s Scotland-based subsidiary increased 24 percent, Mexico-based Neogen Latinoamerica’s sales increased 28 percent, Neogen do Brasil’s revenues increased 43 percent, and Neogen China’s sales increased 21 percent, all in U.S. dollars.
- Neogen’s Animal Safety segment reported a revenue increase of 10 percent due to acquisitions within the previous 12 months.
- Neogen’s gross margin was 48.4 percent of sales in its first quarter of the current year, compared with the 50.5 percent recorded in the company’s first quarter of its last fiscal year.
- Operating expenses increased 12 percent compared with the prior year quarter; $1.2 million of the increase relates to recent acquisitions.
“The first quarter was a good start for our 2017 fiscal year. We are where we want to be, and are continuing to establish our presence throughout our worldwide markets,” said James Herbert, Neogen’s CEO and chairman. “The growth we are reporting today reflects the positive impact of our recent acquisitions and significant growth in many of our core product lines – and comes despite the United Kingdom’s vote to exit the European Union, which resulted in a significant adverse currency translation impact on revenues at our operations in Scotland.”
