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2024 ANNUAL REPORT
Table of Contents 02 Message from John Adent, CEO 04 Made to do More 08 Neogen Corporation Form 10-K 101 Officers and Directors 102 Neogen Corporation and Subsidiaries: Comparison of Five-Year Cumulative Total Return and Stock Profile Activity 71% Food Safety By Segment 71% Food Safety 29% Animal Safety By the Numbers Sales Fiscal Year 2024 50% International By Region and 56% U.S. 14% Latin America Canada 12% Asia Pacific 3% Australia and New Zealand Europe, Middle 15% East, Africa 98% Consumables By Product 98% Consumables 2% Non-consumables
The advancement of human and animal well-being through science and technology so we can fuel a brighter future for global food security. Total Revenues Net Income Dollars in thousands Dollars in thousands 60,000 45,000 30,000 15,000 0 (15,000) 2022 2024 2023 Adjusted EBITDA (30,000) 2022 2023 2024 Equity (1) Dollars in thousands Dollars in thousands 2022 2023 2024 Adjusted EBITDA is a non-GAAP measure. Refer to section entitled Non-GAAP Financial Measures in our Form 10-K included in this Annual Report for the definition and reconciliation. 2022 2023 2024 (1) 1
While making this significant integration progress, we were simultaneously navigating softer conditions in our primary end markets. In Food Safety, we believe testing has continued to grow, but the end market is influenced to a degree by food production levels. Food production has been impacted by inflation, which has been particularly acute in food and contributed to negative volume growth for many food producers throughout our fiscal year as consumers engaged in more value-seeking behaviors. Encouragingly, many of these food producers are expecting volumes to begin to show improvement over the course of the next year. A Message from John Adent, President and CEO To Our Shareholders, Employees and Friends, Following a transformative 2023 fiscal year that saw the completion of the 3M Food Safety transaction, our 2024 fiscal year represented significant progress on the integration of the former 3M business, with the completion of the majority of the key workstreams in this area. Of the four key product lines acquired via the 3M transaction, three are now fully integrated into Neogen. In the second half of the fiscal year, we completed the relocation of production of the former 3M pathogen detection and sample handling product lines into Neogen facilities. The sole former 3M product line that remains to be integrated is Petrifilm, which will be accomplished through the establishment of our own production in a new manufacturing facility we ve built near our headquarters in Lansing, Michigan. The construction of this facility is essentially complete, with the interior now being prepared for the arrival of the same bespoke, but brandnew, production equipment used by 3M to manufacture the product line. The integration of Petrifilm is proceeding on track, with our own production expected to begin to ramp up gradually over the course of the next two years. From the closing of the 3M transaction, we utilized transition service agreements for the back-office and distribution functions related to the former 3M product portfolio while we scaled up our capabilities to eventually accommodate these services within Neogen. In the second half of the fiscal year, we also completed the exit of these transition service agreements, with the back-office processing and distribution of all former 3M products now taking place entirely within Neogen. The significant increase in volume contributed to some lower order fulfillment rates in our primary distribution center, but we have since worked through this issue and our commercial teams are now able to squarely focus on demand generation. 2 Our Animal Safety end market is influenced by herd/flock sizes and net farm incomes, which declined through at least most of our fiscal year, based on the latest data available. Additionally, the large veterinary distributors to whom we primarily sell in this segment were reducing their inventory levels during a large part of the fiscal year. These inventory levels came into better balance with end-user demand towards the end of the fiscal year and we do not expect destocking to be a significant headwind in the near future. In our genomics business, the biggest piece of which falls within our Animal Safety segment, we initiated a shift in focus towards larger production animals, where we believe our data analysis and insights are able to add more value. We saw a decline in genomics revenue as a result of this shift in focus, the primary impact of which we believe is now behind us. Despite these challenges, our business grew for the 33rd consecutive year in 2024, and we believe it has the opportunity to move towards more typical historical growth levels. We continue to invest in our core immunoassay and microbiological capabilities, as well as in our key technology platforms of Petrifilm and the Molecular Detection System (MDS). We expect these investments will not only enable further penetration of the Food Safety market, but also allow us to expand into adjacent end markets over time. Geographically, we believe we have room to grow in all regions, with outsized potential in Europe and Asia, where we are underrepresented relative to other areas of the world. To capitalize on this opportunity, we made sizeable additions to our commercial teams to drive customer awareness and leverage our leading Food Safety product portfolio. All of these efforts are supported by our commitment to innovation, where we ve refined our prioritization and are utilizing our expanded capabilities to drive product development initiatives focused on enhancements and manufacturability of existing products, as well as on new technologies that will keep us positioned at the forefront of Food Safety. While our continued integration efforts remain at the forefront of our business, it is also important that we take time to recognize the other achievements we have made throughout the year. Our Food and Animal Safety teams remain dedicated and passionate about our mission and vision for the future, and our accomplishments reflect that. Achieving More Food Safety In 2024, we celebrated 40 years of Petrifilm, the innovation that changed how microbiologists around the world perform indicator testing. Introduced in 1984, Petrifilm eliminates the need for traditional agar preparation, saving time and offering consistent, uniform testing media. Forty years later, Petrifilm has become
one of the world s most trusted tests, with over 2.85 billion plates used across more than 60 countries, earning over 105 global validations, certifications and recognitions. This year, we also launched the Petrifilm Automated Feeder, a system specifically designed for high-volume food safety testing labs that automatically feeds and enumerates up to 300 Petrifilm Plates in approximately 30 minutes. Combined, the Petrifilm Automated Feeder and Plate Reader Advanced can eliminate manual work related to loading plates and recording initial results. This can reduce the burden placed on technician staff, as well as turnover rates, providing more capacity for data analysis. We were also pleased to announce the U.S. Department of Agriculture s Food Safety and Inspection Service (FSIS) selected the Neogen Molecular Detection System (MDS) as the primary method to be used for the detection of Salmonella and Listeria monocytogenes in meat, poultry and egg products. The FSIS also selected the newly available Neogen Molecular Detection Assay 2 for the detection of Listeria spp., as well as Salmonella Enteritidis/Salmonella Typhimurium. This isothermal molecular assay overcomes certain limitations of existing solutions, such as traditional serology and PCR-based methods, with improved accuracy, reduced time to results and a streamlined workflow that provides increased productivity. Our line of enhanced quantitative ELISA assays also expanded this year with the introduction of the Veratox VIP for Walnut, a sandwich enzyme-linked immunosorbent assay. This innovative test offers enhanced quantitative analysis of very low levels of raw and furtherprocessed walnut residues in a wide variety of food products, ingredients and clean-in-place rinses, as well as in environmental swabs. The specificity of this easy-to-use test represents one of the lowest detection concentrations for an ELISA kit, with a bestin-class time-to-result. CelluSmart, from Megazyme by Neogen, represents the launch of an exciting new technology for the biofuel industry to measure cellulosic ethanol from biofuel production. CelluSmart is an industryfirst technology that improves upon the previous National Renewable Energy Laboratory procedure with the introduction of a yeast-degrading cocktail. Since cellulosic ethanol represents a 60% reduction in greenhouse gas emissions compared to standard petroleum-based fuel, this test has the potential to help ethanol producers reduce carbon intensity and make progress toward climate goals. This new technology leverages our knowledge of fiber and carbohydrate method development in another example of Neogen contributing to a more sustainable world. Animal Safety Our Animal Safety team expanded the business through new product launches and the establishment of new commercial partnerships. In our biosecurity products, we introduced our powerful Farm Fluid MAX disinfectant to the swine and poultry markets in the United Kingdom, the first step in a planned rollout to additional European markets. This dual-action disinfectant is designed for challenging farm conditions and formulated for use as part of the Neogen Pathogen Program. We also expanded our offering of SureKill professional pest management solutions with the introduction of SureKill Evolve SC, a versatile and easy-to-use product that can help safeguard food and food supply systems from the many threats posed by a wide variety of pests. Additionally, we launched the SureKill Gel Bait Pro Applicator, which is a durable, lightweight tool that allows pest management professionals to target inconvenient and challenging areas, and minimize bait waste through consistent and controlled product application. Our pet health product portfolio also expanded with the launch of the new Provecta Pro Flea and Tick Collar for Dogs. This innovative collar offers convenient, long-lasting and mess-free, full-body protection for dogs and puppies 12 weeks and older. Pet well-being and comfort are at the forefront of the collar s design, which incorporates a flexible fit and breakaway buckle as an added layer of protection. In the genomics space, we were pleased to launch Igenity Enhanced Dairy, a new and progressive genomic data management tool that empowers dairy producers to make more-informed herd selection and mating decisions. Utilizing the data provided by this digital service, producers are able to make in-herd assessments of genetic potential by pairing each animal s performance data with the results of an Igenity Select profile. This year, we also launched over 100 new companion animal genetic tests through Paw Print Genetics and Canine HealthCheck. With the introduction of these tests, Neogen has elevated the landscape of comprehensive canine genetic screening, enabling veterinarians, breeders and pet owners to learn more about their animals, facilitating informed decisions regarding their health and well-being. Additionally, Neogen formed a relationship with Performance Food Group (PFG), one of the largest food and food service distribution companies in North America, and is now the official genomics provider for the food group s PathProven service. Supported by Neogen s leading genomics services, the PathProven technology allows users to trace food products back to the feedlot, ocean or farm, enabling the entire production process to be carefully inspected and regulated, ensuring both the quality and origin of the products. Forward Momentum The notable advancements we made in 2024 on the journey towards becoming One Neogen are due to the efforts of the great team we have in place. Beyond the specific workstreams we ve completed, a significant component of the integration of the former 3M business has involved people bringing together like-minded groups that are committed not only to the success of Neogen, but also to advancing food safety more broadly. I ve been extremely pleased with how our teams have come together to work collectively towards these goals. We put a significant amount of integration activity behind us in 2024, including the peak of capital spending and working capital investment. There is still work to do to, but, as we pivot to 2025, we re excited and motivated, and carrying the momentum of progress with us. Sincerely, John Adent President and CEO 3
 • shareholder letter icon 9/13/2024 Letter Continued (Full PDF)
 • stockholder letter icon 9/18/2023 NEOG Stockholder Letter
 • stockholder letter icon More "Diagnostics" Category Stockholder Letters
 • Benford's Law Stocks icon NEOG Benford's Law Stock Score = 83


NEOG Shareholder/Stockholder Letter Transcript:

2024 ANNUAL REPORT

Table of Contents
02
Message from
John Adent, CEO
04
Made to do More
08
Neogen Corporation
Form 10-K
101
Officers and Directors
102
Neogen Corporation and
Subsidiaries: Comparison
of Five-Year Cumulative
Total Return and Stock
Profile Activity
71%
Food Safety
By Segment
71% Food Safety
29% Animal Safety
By the Numbers
Sales     Fiscal Year 2024
50%
International
By Region
and
56% U.S.
14% Latin America
Canada
12% Asia Pacific
3% Australia and
   New Zealand
Europe, Middle
15% East, Africa
98%
Consumables
By Product
98% Consumables
2% Non-consumables

The advancement of human and animal
well-being through science and technology
so we can fuel a brighter future
for global food security.
Total Revenues
Net Income
Dollars in thousands
Dollars in thousands

60,000

45,000

30,000

15,000

0

(15,000)

2022
2024
2023
Adjusted EBITDA
(30,000)
2022
2023
2024
Equity
(1)
Dollars in thousands
Dollars in thousands











2022
2023
2024
Adjusted EBITDA is a non-GAAP measure. Refer to section entitled Non-GAAP Financial Measures in our
Form 10-K included in this Annual Report for the definition and reconciliation.
2022
2023
2024
(1)
1

While making this significant integration progress, we were
simultaneously navigating softer conditions in our primary end
markets. In Food Safety, we believe testing has continued to grow,
but the end market is influenced to a degree by food production
levels. Food production has been impacted by inflation, which
has been particularly acute in food and contributed to negative
volume growth for many food producers throughout our fiscal
year as consumers engaged in more value-seeking behaviors.
Encouragingly, many of these food producers are expecting
volumes to begin to show improvement over the course of the
next year.
A Message from
John Adent, President and CEO
To Our Shareholders, Employees
and Friends,
Following a transformative 2023 fiscal year that saw the completion
of the 3M Food Safety transaction, our 2024 fiscal year represented
significant progress on the integration of the former 3M business,
with the completion of the majority of the key workstreams in
this area.
Of the four key product lines acquired via the 3M transaction, three
are now fully integrated into Neogen. In the second half of the fiscal
year, we completed the relocation of production of the former 3M
pathogen detection and sample handling product lines into
Neogen facilities. The sole former 3M product line that remains
to be integrated is Petrifilm, which will be accomplished through
the establishment of our own production in a new manufacturing
facility we   ve built near our headquarters in Lansing, Michigan. The
construction of this facility is essentially complete, with the interior
now being prepared for the arrival of the same bespoke, but brandnew, production equipment used by 3M to manufacture the product
line. The integration of Petrifilm is proceeding on track, with our
own production expected to begin to ramp up gradually over the
course of the next two years.
From the closing of the 3M transaction, we utilized transition service
agreements for the back-office and distribution functions related
to the former 3M product portfolio while we scaled up our capabilities
to eventually accommodate these services within Neogen. In the
second half of the fiscal year, we also completed the exit of these
transition service agreements, with the back-office processing and
distribution of all former 3M products now taking place entirely
within Neogen. The significant increase in volume contributed to
some lower order fulfillment rates in our primary distribution center,
but we have since worked through this issue and our commercial
teams are now able to squarely focus on demand generation.
2
Our Animal Safety end market is influenced by herd/flock sizes
and net farm incomes, which declined through at least most of
our fiscal year, based on the latest data available. Additionally,
the large veterinary distributors to whom we primarily sell in
this segment were reducing their inventory levels during a large
part of the fiscal year. These inventory levels came into better
balance with end-user demand towards the end of the fiscal year
and we do not expect destocking to be a significant headwind in
the near future. In our genomics business, the biggest piece of
which falls within our Animal Safety segment, we initiated a shift
in focus towards larger production animals, where we believe our
data analysis and insights are able to add more value. We saw a
decline in genomics revenue as a result of this shift in focus, the
primary impact of which we believe is now behind us.
Despite these challenges, our business grew for the 33rd consecutive
year in 2024, and we believe it has the opportunity to move towards
more typical historical growth levels.
We continue to invest in our core immunoassay and microbiological
capabilities, as well as in our key technology platforms of Petrifilm
and the Molecular Detection System (MDS). We expect these
investments will not only enable further penetration of the Food
Safety market, but also allow us to expand into adjacent end markets
over time. Geographically, we believe we have room to grow in all
regions, with outsized potential in Europe and Asia, where we are
underrepresented relative to other areas of the world. To capitalize
on this opportunity, we made sizeable additions to our commercial
teams to drive customer awareness and leverage our leading
Food Safety product portfolio. All of these efforts are supported
by our commitment to innovation, where we   ve refined our
prioritization and are utilizing our expanded capabilities to drive
product development initiatives focused on enhancements and
manufacturability of existing products, as well as on new technologies
that will keep us positioned at the forefront of Food Safety.
While our continued integration efforts remain at the forefront of
our business, it is also important that we take time to recognize
the other achievements we have made throughout the year. Our
Food and Animal Safety teams remain dedicated and passionate
about our mission and vision for the future, and our accomplishments
reflect that.
Achieving More
Food Safety
In 2024, we celebrated 40 years of Petrifilm, the innovation that
changed how microbiologists around the world perform indicator
testing. Introduced in 1984, Petrifilm eliminates the need for
traditional agar preparation, saving time and offering consistent,
uniform testing media. Forty years later, Petrifilm has become

one of the world   s most trusted tests, with over 2.85 billion plates
used across more than 60 countries, earning over 105 global
validations, certifications and recognitions.
This year, we also launched the Petrifilm Automated Feeder, a
system specifically designed for high-volume food safety testing
labs that automatically feeds and enumerates up to 300 Petrifilm
Plates in approximately 30 minutes. Combined, the Petrifilm
Automated Feeder and Plate Reader Advanced can eliminate
manual work related to loading plates and recording initial
results. This can reduce the burden placed on technician staff, as
well as turnover rates, providing more capacity for data analysis.
We were also pleased to announce the U.S. Department of
Agriculture   s Food Safety and Inspection Service (FSIS) selected
the Neogen Molecular Detection System (MDS) as the primary
method to be used for the detection of Salmonella and Listeria
monocytogenes in meat, poultry and egg products. The FSIS
also selected the newly available Neogen Molecular Detection
Assay 2 for the detection of Listeria spp., as well as Salmonella
Enteritidis/Salmonella Typhimurium. This isothermal molecular
assay overcomes certain limitations of existing solutions, such
as traditional serology and PCR-based methods, with improved
accuracy, reduced time to results and a streamlined workflow
that provides increased productivity.
Our line of enhanced quantitative ELISA assays also expanded this
year with the introduction of the Veratox VIP for Walnut, a sandwich
enzyme-linked immunosorbent assay. This innovative test offers
enhanced quantitative analysis of very low levels of raw and furtherprocessed walnut residues in a wide variety of food products,
ingredients and clean-in-place rinses, as well as in environmental
swabs. The specificity of this easy-to-use test represents one of
the lowest detection concentrations for an ELISA kit, with a bestin-class time-to-result.
CelluSmart, from Megazyme by Neogen, represents the launch of
an exciting new technology for the biofuel industry to measure
cellulosic ethanol from biofuel production. CelluSmart is an industryfirst technology that improves upon the previous National
Renewable Energy Laboratory procedure with the introduction
of a yeast-degrading cocktail. Since cellulosic ethanol represents
a 60% reduction in greenhouse gas emissions compared to
standard petroleum-based fuel, this test has the potential to help
ethanol producers reduce carbon intensity and make progress
toward climate goals. This new technology leverages our knowledge
of fiber and carbohydrate method development in another
example of Neogen contributing to a more sustainable world.
Animal Safety
Our Animal Safety team expanded the business through new
product launches and the establishment of new commercial
partnerships.
In our biosecurity products, we introduced our powerful Farm
Fluid MAX disinfectant to the swine and poultry markets in the
United Kingdom, the first step in a planned rollout to additional
European markets. This dual-action disinfectant is designed for
challenging farm conditions and formulated for use as part of the
Neogen Pathogen Program.
We also expanded our offering of SureKill professional pest
management solutions with the introduction of SureKill Evolve
SC, a versatile and easy-to-use product that can help safeguard
food and food supply systems from the many threats posed by
a wide variety of pests. Additionally, we launched the SureKill
Gel Bait Pro Applicator, which is a durable, lightweight tool that
allows pest management professionals to target inconvenient
and challenging areas, and minimize bait waste through
consistent and controlled product application.
Our pet health product portfolio also expanded with the launch
of the new Provecta Pro Flea and Tick Collar for Dogs. This
innovative collar offers convenient, long-lasting and mess-free,
full-body protection for dogs and puppies 12 weeks and older.
Pet well-being and comfort are at the forefront of the collar   s
design, which incorporates a flexible fit and breakaway buckle as
an added layer of protection.
In the genomics space, we were pleased to launch Igenity Enhanced
Dairy, a new and progressive genomic data management tool that
empowers dairy producers to make more-informed herd selection
and mating decisions. Utilizing the data provided by this digital
service, producers are able to make in-herd assessments of
genetic potential by pairing each animal   s performance data with
the results of an Igenity Select profile.
This year, we also launched over 100 new companion animal genetic
tests through Paw Print Genetics and Canine HealthCheck. With the
introduction of these tests, Neogen has elevated the landscape
of comprehensive canine genetic screening, enabling veterinarians,
breeders and pet owners to learn more about their animals, facilitating
informed decisions regarding their health and well-being.
Additionally, Neogen formed a relationship with Performance Food
Group (PFG), one of the largest food and food service distribution
companies in North America, and is now the official genomics
provider for the food group   s PathProven service. Supported by
Neogen   s leading genomics services, the PathProven technology
allows users to trace food products back to the feedlot, ocean
or farm, enabling the entire production process to be carefully
inspected and regulated, ensuring both the quality and origin of
the products.
Forward Momentum
The notable advancements we made in 2024 on the journey towards
becoming One Neogen are due to the efforts of the great team we
have in place. Beyond the specific workstreams we   ve completed,
a significant component of the integration of the former 3M
business has involved people     bringing together like-minded
groups that are committed not only to the success of Neogen, but
also to advancing food safety more broadly. I   ve been extremely
pleased with how our teams have come together to work
collectively towards these goals.
We put a significant amount of integration activity behind us in
2024, including the peak of capital spending and working capital
investment. There is still work to do to, but, as we pivot to 2025,
we   re excited and motivated, and carrying the momentum of
progress with us.
Sincerely,
John Adent
President and CEO
3



shareholder letter icon 9/13/2024 Letter Continued (Full PDF)
 

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