By Nicholas G. Miller

Neogen reported lower first-quarter revenue and adjusted profit, and said it had undertaken cost-cutting initiatives, including layoffs, in order to improve margins.

The food and animal safety company reported revenue of $209.2 million, down from $217 million the previous year. Wall Street had expected $203.1 million, according to FactSet.

Revenue from Neogen's food safety segment fell 4.6% to $152.1 million. The company previously said the business had struggled from elevated trade uncertainty and the effect of four years of inflation on food production.

Adjusted net income fell to 4 cents a share, in line with analysts' expectations, but down from 7 cents a share the year prior.

The company said it had taken actions to cut costs at the end of September. "We recently implemented company-wide cost initiatives, which included the difficult decision to reduce headcount across the organization," said Chief Executive Mike Nassif. "These steps will fuel margin growth and give us the ability to strategically reinvest in high-potential areas."

Shares rose 10% to $6.40 in premarket trading.

Neogen reaffirmed its fiscal-year revenue outlook of $820 million to $840 million. Analysts see $815.3 million.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

October 09, 2025 07:19 ET (11:19 GMT)

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