Neogen announced the results of the first quarter of its 2023 fiscal year, which ended August 31.
Article continues below
Revenues for the first quarter were $132,349,000, compared to $128,305,000 in the prior year, an increase of 3%. Excluding unfavorable currency comparisons to the prior year, revenues increased 6% in the first quarter. On an organic basis, sales increased 4% with a neutral currency comparison.
Net income for the first quarter was $5,209,000, or $0.05 per share, adversely impacted by $13.7 million of professional fees and other deal-related expenses incurred in connection with Neogen's combination with 3M's Food Safety business, which closed on September 1, 2022.
Excluding the 3M Food Safety deal-related costs, net income for the quarter would have been $15,891,000, or $0.15 per share, compared to the prior year's $17,077,000, or $0.16 per share.
Gross margins were 47.0% of sales in the first quarter of the fiscal year, compared to 46.8% in the prior year. The 20 basis point improvement is the result of a favorable product mix shift in the Animal Safety segment and price increases implemented to offset rising costs.
Excluding the 3M Food Safety deal-related costs, operating expenses rose by 11% in the first quarter, primarily due to $2.1 million of incremental costs from acquisitions completed in the last year, increased spending on customer-facing activities, and compensation.
Adjusted operating income for the first quarter was $19,793,000, or 15% of sales, compared to $21,745,000, or 16.9% of sales in the first quarter of the company's 2022 fiscal year. Adjusted EBITDA for the first quarter was $27.0 million, compared to $28.9 million in the prior year, a decrease of 6%. ■
Modified arctic air combined with a moisture-laden area of low pressure along the Gulf Coast will continue to allow for a broad area of winter weather impacts from the Lower Mississippi Valley to the Southeast today into early Saturday morning.