Neogen Corporation (NEOG)

Operating 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
Operating income (ttm)	US$ in thousands	-1,060,997	-432,240	-425,632	46,317	63,195	69,048	45,238	23,117	10,044	-1,215	10,627	30,752	46,435	54,524	70,243	77,019	74,169	73,858	71,127	70,154
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
Operating profit margin		-118.59%	-47.71%	-46.58%	5.08%	6.84%	7.43%	4.92%	2.52%	1.22%	-0.17%	1.68%	5.79%	8.81%	10.60%	13.97%	15.80%	15.83%	16.41%	16.42%	16.47%

May 31, 2025 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-1,060,997K ÷ $894,661K
= -118.59%

The operating profit margin of Neogen Corporation exhibits significant fluctuations over the analyzed period, indicating variability in operational efficiency and profitability. From August 31, 2020, through August 31, 2021, the margin remained relatively stable and high, ranging between approximately 16.47% and 15.80%. This stability suggests consistent operational performance during that interval.

Starting in late 2021, a downward trend becomes evident. By November 30, 2021, the margin had declined to approximately 13.97%, and this decline continued sharply into 2022, reaching around 10.60% in February and dropping further to 8.81% by May. The decline persisted into late 2022, with the margin decreasing to 5.79% in August and subsequently collapsing to 1.68% in November 2022.

In 2023, the operating profit margin fluctuated, briefly turning negative at the end of February (-0.17%) and then recovering modestly to 1.22% in May and subsequently rising to 2.52% in August and notably increasing to 4.92% in November. By the end of February 2024, the margin improved to 7.43%, indicating a partial recovery in operational profitability.

However, the most recent data from late 2024 and early 2025 reveals a dramatic deterioration. The operating profit margin plummeted to negative levels, reaching -46.58% as of November 30, 2024, and further declining to -47.71% in February 2025. The decline culminates with an exceptionally negative margin of approximately -118.59% as of May 31, 2025, indicating a likely substantial operational loss or extraordinary circumstances affecting profitability.

Overall, the trend shows initial stability and profitability in the early phases, followed by a sustained decline beginning mid-2021, with recent periods indicating severe operational margin deterioration. This pattern suggests potential financial distress, operational challenges, or extraordinary factors impacting the company's capacity to generate operating profit.