Strong UK sales help Neogen's net income climb 30%
Lon Bohannon, Neogen’s president and chief operating officer, told FoodManufacture.co.uk: “Neogen Europe continues to lead the charge in growing international sales achieving another year of outstanding growth with an overall sales increase of 27%.
“Sales were up across a number of product lines - allergens, dehydrated culture media, mycotoxins - in the UK, France, Scandinavia and China. Distributors serving other EU countries and managed by our Neogen Europe operation also experienced an exceptional year with sales growth of 34%.”
The company’s Food Safety Division markets dehydrated culture media and diagnostic test kits that detect foodborne bacteria, mycotoxins, other natural toxins, genetic modifications, food allergens, drug residues, plant diseases and sanitation concerns.
Recent third-party market reports indicate the global food safety markets are growing at more than 10% per year.
Salmonella and listeria
Sales of the company’s Reveal product line, that detects specific pathogens such as E. coli, salmonella and listeria, and its Soleris test systems, that detects spoilage organisms such as yeast and mould, were both up 15% for the year.
Meanwhile, last month Neogen reported the acquisition of the seafood testing facilities of VeroMara in Scotland as part of its strategy to extend its food safety operations.
The Oban-based VeroMara supplies testing services to aquaculture industries for the detection of shellfish toxins and general foodborne pathogens, including E.coli and noroviruses.
Speaking last month to FoodManufacture.co.uk’s sister publication, FoodProductionDaily.com, James Herbert, Neogen's ceo and chairman, said: "VeroMara's services are complementary and a nice fit with our existing product lines for the seafood industry, including one of our biggest food safety diagnostic products - our histamine tests for the tuna industry.”
Asked whether more acquisitions are planned, Bohannon told FoodManufacture.co.uk: “Neogen has historically used synergistic acquisition as one of our strategies for rapid growth, and we expect to continue to do so.
Acquisition candidate
“We are now not at a point of letter of intent with any acquisition candidate. We’ll continue to search for acquisition opportunities that can provide products faster than we might develop them ourselves or allow us to enter into markets that we don’t currently serve in a more accelerated fashion.”
Research and development will also receive priority. Last week, the company decided to step up research to develop diagnostic tools to detect E.coli strains in ground beef and a range of other products including fresh fruits and vegetables.
In addition to Food Safety, Neogen operates three other divisions: Animal Safety; Life Sciences Division and GeneSeek.
Its Animal Safety Division markets diagnostic products plus veterinary instruments, veterinary pharmaceuticals and nutritional supplements, disinfectants and rodenticides.
Life Sciences produces drug detection assays while its GeneSeek division focuses on speeding genetic improvement efforts and identifying economically important diseases on farms.
