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LANSING, Mich. - Neogen Corporation (NASDAQ: NEOG), a company specializing in food safety solutions, announced today that CEO and President John Adent will step down from his role. The announcement comes as the company's stock trades near its 52-week low of $6.89, having declined over 52% in the past six months. Adent, who has been at the helm for eight years, will remain in his current position until a new CEO is appointed.
The company's Board of Directors has formed a special committee to oversee the search for the next CEO. The committee includes Board Chair Jim Borel, Thierry Bernard, and Jeff Capello, and they have also engaged a global executive search firm to assist in the process.
During this transition period, the special committee will support Adent and Neogen's leadership team in continuing to execute the company's strategic initiatives. With a strong current ratio of 3.77 and annual revenue of $914 million, the company maintains a solid financial foundation. Borel expressed gratitude for Adent's leadership, which has seen Neogen focus on long-term opportunities in the food safety market. The Board is confident in the company's ability to capitalize on growth and profitability improvement initiatives. According to InvestingPro analysis, analysts expect the company to return to profitability this year.
Adent stated his pride in leading Neogen and the accomplishments achieved with his team. He emphasized the importance of Neogen's food and animal safety solutions and the company's positioning for future opportunities. Adent committed to ensuring a smooth transition while the Board searches for his successor.
Neogen, with a presence in over 140 countries and a market capitalization of $1.53 billion, is recognized as a leader in food safety, livestock, and pet health and wellness markets. The company is dedicated to enhancing global food security by advancing human and animal well-being, leveraging science and technology to provide optimized products and services for its customers. For detailed insights into Neogen's valuation and 10+ additional ProTips, access the comprehensive Pro Research Report available on InvestingPro.
This announcement is based on a press release statement from Neogen Corporation.
In other recent news, Neogen Corporation has reported preliminary financial results for the second quarter ending November 30, 2024, with a modest revenue increase to $231.3 million, up 0.7% from the previous year. Despite this growth, the company faced a net loss of $456.3 million due to a non-cash goodwill impairment charge related to the acquisition of the former 3M Food Safety Division. In another development, Neogen announced the refinancing of its $550 million term loan and revolving credit facility, extending the debt maturity to April 2030 with reduced interest rates. This financial move is expected to provide Neogen with more balance sheet flexibility.
Additionally, Neogen has been cleared of an unfair labor practices charge by the National Labor Relations Board, allowing its Lansing warehouse employees to proceed with a unionization vote. The company has also introduced a new salmonella detection kit for the poultry industry, enhancing its pathogen testing capabilities. Lastly, Neogen’s first-quarter fiscal 2025 results revealed an earnings per share (EPS) of $0.11, surpassing analyst forecasts, with revenue reaching $231.3 million, exceeding the projected $226.19 million. Despite these positive earnings, the company has identified material weaknesses in its internal controls over financial reporting, with more details to be provided in its forthcoming Form 10-Q.
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