Neogen Corporation (NEOG)

Gross profit margin

		May 31, 2025	Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020
Gross profit (ttm)	US$ in thousands	421,376	442,003	448,621	452,065	463,900	473,600	464,681	460,446	405,955	347,772	297,220	245,275	243,013	235,705	232,142	224,762	215,056	209,094	200,575	198,387
Revenue (ttm)	US$ in thousands	894,661	905,996	913,828	912,199	924,222	929,238	918,681	919,085	822,447	720,730	630,719	531,203	527,159	514,491	502,956	487,439	468,459	450,108	433,268	426,071
Gross profit margin		47.10%	48.79%	49.09%	49.56%	50.19%	50.97%	50.58%	50.10%	49.36%	48.25%	47.12%	46.17%	46.10%	45.81%	46.16%	46.11%	45.91%	46.45%	46.29%	46.56%

May 31, 2025 calculation

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

The gross profit margin of Neogen Corporation has demonstrated a trend of gradual stability with a slight upward trajectory over the analyzed period. From August 31, 2020, to November 30, 2024, the gross profit margin increased from approximately 46.56% to a peak of approximately 50.58%. This indicates a consistent improvement in the company's ability to generate gross profit relative to sales over this period.

Notably, after reaching its peak margin of 50.58% on November 30, 2024, there was a modest decline to 49.09% by November 30, 2025. Prior to this peak, the margins exhibited minor fluctuations but maintained an overall upward trend, with the most significant increases occurring between early 2023 and late 2024.

The period from August 2020 through early 2024 reflects a period of stable gross profit margins hovering around the mid-to-high 46% range, with incremental increases as the company’s margins approached the 50% threshold. The recent decline in margin levels suggests some pressures or competitive factors that may be impacting profitability efficiencies or cost management strategies, leading to a slight contraction in gross profit margins.

Overall, the data indicates that Neogen Corporation substantially improved its gross profit margin over the analyzed period, achieving near 51% in late 2024, which is indicative of effective management of cost of goods sold relative to sales. However, the subsequent decline signals potential challenges that could warrant further investigation into operating costs, pricing strategies, or market conditions affecting profitability in the later months.