Company: NEOG
Filing Date: 2025-09-12
Form Type: DEF 14A
Source: 0000950170-25-114381
Chunk: 26

Company: NEOGEN CORP
Filing Date: 2025-09-12
Form: DEF 14A
Chunk 26
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 countries with a dedicated network of scientists and technical experts focused on delivering optimized products and technology for its customers. Neogen’s Food Safety segment is primarily engaged in the manufacturing and marketing of diagnostic test kits and complementary products sold to food and feed producers and processors to preserve the quality of food to prevent contamination and foodborne illnesses such as pathogens, spoilage organisms, natural toxins, allergens, ruminant by-products, and general contamination in manufacturing environments. Neogen’s food safety test kits are used by customers ranging from small local grain elevators to the largest, best-known food and feed processors in the world, as well as numerous regulatory agencies. Along with the detection of contaminants in foods, Neogen’s food safety test kits also analyze food content, such as dietary fiber and carbohydrates. Neogen’s Animal Safety segment encompasses a broad portfolio of products and services aimed at enhancing animal health, agricultural biosecurity and genetic progress. These offerings span life sciences, veterinary instruments and disposables, animal care solutions, rodent and insect control and advanced genomics services. The segment supports livestock producers, veterinarians, researchers and companion animal owners globally. Our Performance In fiscal year 2025, Neogen’s performance was below expectations, as the Company navigated through a weak end-market environment and global trade uncertainty, as well as foreign currency headwinds and challenges related to the integration of the former 3M Food Safety Division. Food production levels, which influence the food safety end market, are estimated to have been lower than in fiscal year 2024, due largely to the cumulative effect of inflation and resulting value-seeking behavior of many consumers. The cattle herd size, which influences The Company’s animal safety end market, reached its lowest level in the US in over 70 years. We also believe the global trade uncertainty, which began to emerge during the second half of fiscal year 2025, affected the willingness of many distributors to commit to full inventory positions.

| Neogen Corporation | 2025 Proxy Statement | 26 |

#### Compensation Discussion and Analysis
The Company’s profitability in fiscal year 2025 was impacted primarily by lower revenue and challenges related to the integration of the former 3M Food Safety Division, including an elevated level of inventory write-offs. The Company’s sample collection product line, which was relocated to a Neogen facility as part of the integration, struggled to achieve prior output levels without significant inefficiencies. The elevated inventory write-offs in fiscal year 2025 were due, in part, to complications experienced during the fiscal year 2024