Neogen Corporation (NEOG)

Gross profit margin

		May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020
Gross profit	US$ in thousands	463,900	405,955	243,013	215,056	196,279
Revenue	US$ in thousands	924,222	822,447	527,159	468,459	418,170
Gross profit margin		50.19%	49.36%	46.10%	45.91%	46.94%

May 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $463,900K ÷ $924,222K
= 50.19%

Neogen Corporation's gross profit margin has shown a fluctuating trend over the past five years. In May 2020, the gross profit margin stood at 46.94%, decreasing slightly to 45.91% by May 2021. However, the trend reversed in the following years, with the margin increasing to 46.10% in May 2022, 49.36% in May 2023, and further up to 50.19% by May 2024.

The consistent improvement in the gross profit margin from 2022 to 2024 indicates that Neogen Corporation has been able to effectively manage its cost of goods sold and pricing strategies, potentially leading to increased profitability from its core operations. This upward trend may also suggest an enhancement in operational efficiencies or adjustments to product pricing that have positively impacted the company's profitability. Overall, the progressive increase in the gross profit margin reflects positively on Neogen Corporation's ability to maintain healthy margins and potentially generate stronger returns on sales in the future.