Neogen Corporation (NEOG)

Gross profit margin

		May 31, 2025	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021
Gross profit	US$ in thousands	421,376	463,900	405,955	243,013	215,056
Revenue	US$ in thousands	894,661	924,222	822,447	527,159	468,459
Gross profit margin		47.10%	50.19%	49.36%	46.10%	45.91%

May 31, 2025 calculation

Gross profit margin = Gross profit ÷ Revenue
= $421,376K ÷ $894,661K
= 47.10%

The gross profit margin of Neogen Corporation has exhibited an overall upward trend over the period from May 31, 2021, to May 31, 2025. Specifically, the margin increased from 45.91% in fiscal year 2021 to 46.10% in 2022, representing a modest improvement of 0.19 percentage points. The trend continued into 2023, with the gross profit margin rising more significantly to 49.36%, indicating enhanced profitability at the gross level. This upward trajectory persisted into 2024, with the margin reaching 50.19%, marking a near 1 percentage point increase from the previous year and reaching its highest point in the analyzed period. However, in 2025, the gross profit margin experienced a slight decline to 47.10%, representing a decrease of approximately 3.09 percentage points from the peak in 2024.

Overall, the data suggests that Neogen Corporation has enhanced its gross profitability over most of the period, with a notable peak in 2024 before a small contraction in 2025. This pattern may reflect improvements in cost management, pricing strategies, or product mix efforts during the period, with the slight dip in 2025 possibly indicating increased cost pressures or competitive factors impacting gross margins.