Meridian Bioscience posts record profit, sales in fiscal fourth quarter and year

CINCINNATI, Ohio — Sales of rapid tests for flu and food-borne illnesses drove Meridian Bioscience Inc. to records in profit and sales for its fiscal fourth quarter and year, that despite a recession-slowed first half of the year.

Meridian reported net income of $8.9 million, or 22 cents a diluted share, in the quarter ended Sept. 30. That was up 16 percent from $7.7 million, or 19 cents a diluted share in the year-ago quarter. Net sales were $42.5 million in the quarter, up 16 percent from $36.5 million a year ago.

For fiscal 2009, Meridian had net income of $32.8 million, or 80 cents a diluted share. That was 8 percent higher than $30.2 million, or 74 cents a diluted share, in fiscal 2008. Net sales rose 6 percent to $148.3 million in that time.

“The first half of fiscal 2009 was challenging due to a weakened economy, inventory de-stocking by customers, a surprisingly mild flu season and fluctuating currency effects,” John Kraeutler, Meridian’s chief executive, said in a written statement. “During the second half, opportunities arose that enabled our strong record-setting finish.”

Those opportunities included robust sales and shipments of Meridian’s rapid influenza tests, driven by the H1N1 pandemic, as well as market acceptance of new flu and respiratory infection tests. Rapid tests for food-borne illnesses, such as E. coli, also grew in the double-digits during the fourth quarter and are expected to contribute in a major way to 2010 sales increases, Kraeutler said.

“Fiscal 2009 represented our seventh consecutive year of record operating results,” said William Motto, executive chairman of Meridian’s board, in the statement. “As we look forward to fiscal 2010, we expect double-digit growth in sales and earnings, and new records to be set.

“More specifically, our guidance to the financial community calls for net sales in the $160 million to $165 million range, and per-share diluted earnings between $0.90 and $0.95,” Motto said. “Consistent with our stated cash dividend policy and the outlook for fiscal 2010, the board of directors increased the regular indicated cash dividend rate from $0.68 to $0.76 per share, an increase of 12 percent.”

Shares of Meridian Bioscience were down 31 cents to $22.54 in mid-morning trading on the NASDAQ Stock Market.