Neogen Corp. (NASDAQ:NEOG) Q1 2021 Earnings Conference Call - Final Transcript

Sep 22, 2020 • 11:00 am ET

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Neogen Corp. (NASDAQ:NEOG) Q1 2021 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

We will now begin the question-and-answer session. [Operator Instructions]. Our first question comes from David Westenberg from Guggenheim Securities. David, you are live. Please go ahead.

Analyst
David Westenberg

Hi. And thanks for taking my question. Good job executing on in a really challenging environment. So -- [Speech Overlap]

Executive
John Adent

Thanks David.

Analyst
David Westenberg

So, I'm just starting with the rodenticides sales. I know we're getting news articles about rodents taking over New York City. I'm just trying to kind of understand whether or not this pickup in sales is something that you think can increase and if you can maybe quantify what the rodenticides were versus -- because we also kind of want to figure out that in -- disinfectants and sanitizers and rodenticides did very well in the quarter. So we are trying to understand contribution from rodenticides if that could be recurring and if there is a way to quantify that in order to understand, also in terms of what the sanitation products that might be a COVID lift or -- I get that's a long question, sorry about that.

Executive
John Adent

That's all right, Dave. Yeah. Well, the big lift for us on rodenticide was really as Steve talked about in the Pacific Northwest and the Ag market. So we had a really, there was a really strong outbreak kind of out there. We are seeing in our worldwide markets a lift in our PCO which is two of the more metropolitan areas, but that's a market that is relatively new to NEOGEN, but it's one that we're pretty excited about and see some long-term growth opportunities in.

In the cleaners and disinfectants, as Steve mentioned, you saw we had increases in hand sanitizers in the UK where we are working with the UK government. We continue to look for opportunities there. I think when we stepped up at the beginning of the outbreak and provided sanitizers outside the market, there is a lot of new customers we picked up. Everybody else has kind of gotten their supply chain in order. So there's a lot of sanitizer pressure. There is not a run on like there was, but we're seeing pretty good retention rate for the customers that we picked up early in the year.

Analyst
David Westenberg

Got it, okay. And then another asking to kind of quantify, you got contribution of StandGuard, but it was only about a month and I know you give a organic revenue number and if we could subtract out what the top line is and kind of figure out what the acquisitions did. But if there is a couple of pieces, I can probably just try to get out for in terms of trying to model out. Would you be able to call out StandGuard and if one months -- we could just times that by 12 to get kind of the run rate for StandGuard, and then kind of the distributor acquisition contributions. If you can't give it specific, if you can maybe give us a qualitative kind of way