Neogen Corporation (NEOG)

Net 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
Net income (ttm)	US$ in thousands	-1,092,044	-485,263	-476,328	-23,533	-9,421	1,566	11,778	-26,576	-22,870	-13,483	-16,230	36,439	48,307	49,108	57,042	62,099	60,882	61,469	60,292	60,683
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
Net profit margin		-122.06%	-53.56%	-52.12%	-2.58%	-1.02%	0.17%	1.28%	-2.89%	-2.78%	-1.87%	-2.57%	6.86%	9.16%	9.54%	11.34%	12.74%	13.00%	13.66%	13.92%	14.24%

May 31, 2025 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $-1,092,044K ÷ $894,661K
= -122.06%

The net profit margin of Neogen Corporation has exhibited significant variability from August 2020 through May 2025. Initially, during the period ending August 31, 2020, the company maintained a relatively healthy net profit margin of approximately 14.24%. This margin demonstrated a gradual decline over the subsequent quarters, decreasing to around 11.34% by November 2021 and further to approximately 9.54% by February 2022. The downward trend continued into 2022, with margins falling to near 6.86% in August 2022.

From late 2022 onward, the company experienced substantial deteriorations in its profitability, transitioning into negative territory. Notably, the net profit margin reached -2.57% in November 2022 and persisted in negative figures through early 2023, reaching approximately -2.78% in May 2023 and -2.89% in August 2023.

In November 2023, there was a notable turnaround with the margin moving into positive territory at 1.28%. However, this improvement was short-lived, as subsequent periods reflect considerable volatility, with margins fluctuating close to break-even and dipping again below zero. The most recent data points to steep negative margins, with sharp declines culminating in a significant loss by November 2024, reported at -52.12%, and further deteriorating to -122.06% by May 2025.

Overall, the trend indicates a shift from relatively stable and positive profit margins in 2020 and early 2021 toward increasingly negative and volatile profitability from late 2022 onward. These fluctuations suggest mounting challenges affecting the company's profitability, and the recent extremely negative margins point to potentially severe financial difficulties or extraordinary operational issues during this period.