The information in this Management's Discussion and Analysis of Financial Condition and Results of Operations contains both historical financial information and forward-looking statements. Neogen does not provide forecasts of future financial performance. While management is optimistic about the Company's long-term prospects, historical financial information may not be indicative of future financial results.
Safe Harbor and Forward-Looking Statements
Forward-looking statements, within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended, are made throughout this Quarterly Report on Form 10-Q. For this
purpose, any statements contained herein that are not statements of historical
fact may be deemed to be forward-looking statements. Without limiting the
foregoing, the words "believes," "anticipates," "plans," "expects," "seeks,"
"estimates," and similar expressions are intended to identify forward-looking
statements. There are a number of important factors, including competition,
recruitment and dependence on key employees, impact of weather on agriculture
and food production, effects of the ongoing COVID-19 pandemic on our business,
global business disruption caused by the
In addition, any forward-looking statements represent management's views only as
of the day this Quarterly Report on Form 10-Q was first filed with the
TRENDS AND UNCERTAINTIES
During fiscal 2022 and the first six months of fiscal 2023, we have experienced
higher than expected input cost inflation, including higher transportation,
supply chain and labor costs, that have negatively impacted operating results.
International freight costs, particularly for containers originating in
Although we have no operations in or direct exposure to
As we continue to monitor the ongoing COVID-19 pandemic, our top priority
remains protecting the health and safety of our employees, their families, and
those in our communities. Safety guidelines and procedures are in place for
on-site employees and these policies are regularly monitored and updated by our
internal
COVID-19 continues to impact our business operations and financial results. A number of our product lines have been negatively impacted due to decreased demand in our customers' businesses around the world. Many of our markets have recovered or are recovering, but the pandemic has continued to adversely impact our customers and ultimately, our revenues. We have also experienced supply chain difficulties directly related to COVID, including vendor disruptions, border closures, shipping issues and significantly increased shipping costs; labor shortages and higher labor costs, as we have had to use staffing agencies and increase our base pay in a number of areas of the Company to fill open positions and to cover for COVID-related absences.
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Overall, the impact of COVID-19 remains uncertain and ultimately depends on the
continued duration and severity of the pandemic, inclusive of the introduction
of new strains of the virus; government actions taken in response; vaccination
rates and effectiveness; the impact of vaccination requirements; extent of
protection provided by prior viral infection; and the macroeconomic environment.
We will continue to evaluate the nature and extent to which COVID-19 has
impacted our business, including supply chain, labor availability and attrition,
consolidated results of operations, financial condition, and liquidity; we
expect it to continue to impact us through at least the end of our fiscal year
ending
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