Neogen Corp. engages in the development, manufacture, and sale of products dedicated to food and animal safety. It operates through the following segments: Food Safety, Animal Safety, and Corporate. The Food Safety segment consists of the development, production and marketing of diagnostic test kits, dehydrated culture media and related products used by food producers and processors to detect harmful natural toxins, foodborne bacteria, allergens, drug residues, and levels of general sanitation. The Animal Safety segment includes the development, production and marketing of products dedicated to animal safety, including a complete line of consumable products marketed to veterinarians and animal health product distributors. The Corporate segment refers to the corporate assets, including cash and cash equivalents, marketable securities, current and deferred tax accounts, and overhead expenses not allocated to specific business segments. The company was founded on June 30, 1981 and is headquartered in Lansing, MI.
Neogen’s results reflect an 11% increase in international sales in fiscal 2019 compared to the prior year. We continue to focus on increasing our presence and market share throughout the world, while also integrating recent international acquisitions into our product portfolio. Sales increases for fiscal 2019 compared to the prior year are as follows for each of our international locations:
Currency translation had a negative impact of approximately $8.0 million on revenues recorded in foreign currencies during fiscal 2019, as the U.S. dollar strengthened against all the currencies in the countries in which we conduct business. The revenue increase in Europe was led by a 14% increase in sales of genomics services, primarily in the porcine and bovine markets. Deoxynivalenol (DON) test kit sales also increased 19% due to increased testing after a DON outbreak in France’s wheat crops in the fall of calendar 2018. Sales at Quat-Chem increased 17%, due to increased sales coverage and the introduction of new products into their markets.
After adjusting for a 15% devaluation of the real against the dollar, sales in Brazil increased 16%, led by a 90% increase in sales of natural toxins test kits, as we gained significant new business from customers testing for the presence of aflatoxin in corn. Sales of forensic test kits, used for required drug testing of commercial drivers in Brazil, increased significantly due to business that shifted from U.S. labs to labs in Brazil and increased demand from commercial laboratories located in Brazil. Neogen Latinoamerica grew revenues by 13%, with gains across most product lines, in particular mycotoxins and culture media, and increased sales in both Mexico and Central America.