Neogen Corporation (NEOG)

Operating profit margin

		May 31, 2025	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021
Operating income	US$ in thousands	-1,061,000	58,663	37,515	34,924	53,128
Revenue	US$ in thousands	894,661	924,222	822,447	527,159	468,459
Operating profit margin		-118.59%	6.35%	4.56%	6.62%	11.34%

May 31, 2025 calculation

Operating profit margin = Operating income ÷ Revenue
= $-1,061,000K ÷ $894,661K
= -118.59%

The operating profit margin of Neogen Corporation has demonstrated significant variability over the observed period from May 31, 2021, to May 31, 2025. At the beginning of this period, on May 31, 2021, the operating profit margin was recorded at 11.34%, indicating a relatively strong capacity to generate operating income relative to sales. By the following year, on May 31, 2022, the margin declined sharply to 6.62%, reflecting increased expenses or decreased efficiency impacting profitability. The downward trend continued into May 31, 2023, with the operating profit margin further decreasing to 4.56%, signifying a continued reduction in operating profitability.

In the subsequent year, the margin experienced a modest recovery, rising to 6.35% as of May 31, 2024, suggesting some stabilization or incremental improvements in operating efficiency or cost management. However, by May 31, 2025, the operating profit margin registered an extraordinary negative value of -118.59%, indicating a severe loss situation. This negative margin implies that the company’s operating expenses exceeded its operating revenues by a substantial margin during that period, potentially due to extraordinary charges, impairments, restructuring costs, or other non-recurring expenses that severely undermined operating profitability.

Overall, the trend highlights a notable decline in Neogen Corporation's operating profit margin over the four-year span, culminating in a period of substantial negative profitability in 2025. This trajectory suggests increased operating challenges, potential strategic or operational shifts, or other financial difficulties impacting the company's ability to generate consistent operating income relative to sales.