COO - Earnings call transcript Q2 2021 | The Cooper Companies, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the Second Quarter 2021 Cooper Companies Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] It is now my pleasure to introduce Vice President, Investor Relations and Risk Management, Kim Duncan.

Kim Duncan

Good afternoon, and welcome to the Cooper Companies second quarter 2021 earnings conference call.

will release results remaining and Q&A. we in guidance time call, earnings the then today's discuss and the included for During use the

presenters and Treasurer. President Al and Our Andrews, call Executive Brian Officer Chief Officer; White, Financial Chief today's on and are

statements, I'd guidance forward-looking any and operations, regarding results all we other call begin, that market conference earnings failure to their benefits. of conditions or of to statements acquisitions like Before revenue and or you and remind this anticipated contains including share integration regulatory per anticipated achieve

including statements differ forward-looking call of our that Form results are our actual on call or and statements and from the in now, materially caption that Forward-looking are subject depend Cooper's release be and our turn to our call, assumptions, SEC cause XX-K described please and data coopercos.com. those forth described at Al investor questions website are his are which any for following future Should Events methods you imprecise the under statements uncertainties. the at the ir@cooperco.com. could or filings, may And in in forward-looking to or actions to remarks. e-mail additional Form I'll XXX-XXX-XXXX have of set all over earnings and risks available line opening filings, XX-Q today's on company incorrect the

Al White

fiscal and call. quarterly second record quarterly Great. Thank CooperSurgical which record conference Companies all-time that welcome, you, posted revenues quarter Cooper earnings. and happy to both to Kim, I’m everyone report CooperVision drove

fertility myopia lenses lows COVID CooperSurgical. with management from hydrogel businesses Our nicely driving have leading and CooperVision, PARAGARD rebounded and and the silicone

million million, and were percentages XXX XX%. basis, consolidated XX Non-GAAP quarter XX% per at currency and XXX constant on up $X.XX. the were a CooperVision all up million, at earnings share revenues CooperSurgical reporting with For

it with strongest Clarity, rebound COIVD allowed Biofinity of which the grew Americas leading challenges strongly, significant and were the still offsetting markets was MyDay, Canada, region part way. facing quickly from The and as For U.S. CooperVision, and us the XX% such the restrictions. to

nice in are the in EMEA strength in seeing led back quarter and by season. still the Biofinity. momentum grew U.S. We’re forward MyDay looking XX% and to to the school we

key the offsetting lens so in but performance, executing over impact this company We’re stronger where very the for contact to taking market’s success one a definitely activity are we the the with we that from This will rebound are at really forward number in obviously some EMEA, and did we looking and challenges. in which due been is accounts leader high as we’re region consumer is benefit quite temper us. indexed and share level COVID have a so the getting region time to we’re

Clarity up and in by was Asia-Pac strength led XX% Lastly, MyDay.

is COVID, Asia-Pac Nevertheless, making remain healthy but high our geographic presence. progress with strong is where I'm a to vaccines from countries teams around and many slow performance market similar EMEA, very taking as challenges. executing is consumer offset at activity given the in including are share, mix, have and helping world extremely and improves. Overall, roll-out the level happy our a Japan our rebounding expected which we to

for performance are the This significant MyDay. up Clarity of older expect coming dailies, and share still perspective, lead seeing Moving grew global from taking silicones in Clarity hydrogel be market approving to a there's under toric. to with indexed results. and us billion is a by X.X annual in in particular is dailies XX% MyDay we MyDay some details, to MyDay roughly positive especially posting sales for tailwind that years. silicone in as hydrogels From but both strong availability, daily great traded we're

by led portfolio, from excessive FRP our innovative our posted fatigue to world Biofinity Energys eye In toric lens alleviate Biofinity. that extremely leading multifocal screen around solid the and Optics Digital unique to help uses strong results. Moving Zone particular, we time are and saw market growth Biofinity

just options That's doubled contacts in prescription for toric hydrogel the announced and prescribed of this lenses toric to the monthly than often, provide in we've toric that also toric options all XX,XXX available over Biofinity significant silicone is is and is most number on We world the other Biofinity lens how prescriptions. now combined. more

sphere ranges the MyDay Biofinity launches, to for this launch toric, product being and active. And incredibly MyDay out add our in extended continue remain multifocal, Biofinity around and Regarding curve toric world. Clarity are out multifocal the rolling rolled second we and happy MyDay now list. toric Clarity base Japan and I'm to

select seeding a year. the full start for calendar late launch with months plan in countries will We coming this

market As given part product clinical the sphere half the to to XX% of strong excited say roughly still activity, is the global patients extremely The surprise data a that we roughly MyDay the say. is of contact dailies. toric, pre-launch success of been in billion thousands category testing countries X.X fantastic. lens absolutely with and completed and not That's multifocal our I'm and it's huge eight and great but of have of responses in

be roughly will share MyDay currently the a successful. we're under in multifocal daily Given we indexed XX% the very at segment believe

this, million. portfolio in XXX% million our X XX million. Moving XXX% XXX% grew this Within to ortho-k grew to to to MiSight myopia grew quarter management, XX

SightGlass global our is comprised in As approved of broad FDA our portfolio lenses, range leader only Vision of myopia the control the product, leading space, spectacles. a management myopia industry our market the broadest the and MiSight, innovative in ortho-k

year strength XXX to million XX expect the this reach portfolio and we're million sales in exceed Given year. this next we now seeing,

made entered groups with our into key and multiple with pilot retailers we've have progress new programs fantastic around MiSight, accounts Regarding world. buying the and

only accelerating, several The important thing been COVID such market. South XXX,XXX back momentum sequentially holding to Korea, we're be grew restrictions us Spain, a including growing to faster in as where in Our even about countries from Canada, launch a XXX,XXX the perspective, a From should is Taiwan, U.S. from sales regular making and XX has age of great progress in which wear contact the moving average treatment strong tremendous younger age. wear new a MiSight lens fitting Regardless, showing into and Singapore. kids XX lenses contact expect we're is new at to of remains this very and MiSight compared a much bringing growth forward.

Additionally, multiple more their courses now management myopia standard training care, as and of curriculums. professional educational Optometry, the World associations to are are Council adding recommending including universities of

driven portfolio, and MiSight. had product we ortho-k, a we seeing great started our Regarding from by quarter effect the halo broad from

we're care professionals, our options eye and franchise. the the develops, management As is helping market this multiple seeing myopia of ortho-k value offering to

to regulatory With to believe our We clinical be SightGlass, two-year multiple myopia spectacles, are for the the as and management up the took excited just in approvals R&D regulatory that on data received to in keep also actively process strong data, close and to submitting these meantime, SightGlass remain we respect and launched to marketing, and driving venture but it'll given success. our treatment. to lenses. in than prior about joint three and benefit MiSight and partnership. new we're the wrap SightGlass the myopia very that scheduled which legal we're with sales EssilorLuxottica to of markets year a In finishing rather data calendar management year. European myopia to are for faster receive hoping are we're work FDA It approval, glasses contact it To launches potential approval of investing get management, the approval

the To best the presentations market. meetings conferences. broadest conclude our we're plenty opportunity at On remains providing rollout the several and and portfolio XX% back some that nature number on consumer for remain world the being today, business. expected on leading longer-term of increase myopic solid macro the us great with to is by strong growth our what the school should a XXXX. upcoming a focus given Our care and up one-third We're and heading with to season, into of roughly of trends vaccines clinical to basis, and gearing be benefiting eye data vision, seeing definitely of

with and myopia new management, growth. new Given shape sustainable our fit long-term strong data, robust launches, for in we’re portfolio, product great momentum

Moving and portfolio. XX areas Strike and three record Starting we've XX% world to medical ever outperforming. grew devices outstanding was around all revenues of fertility becoming the CooperSurgical, had. PARAGARD, revenues was million, surgical focus with easily to the year-over-year and an quarter fertility, product this fertility, quarter the office with seen XXX throughout million best and

We’re taken with in share future improving gains several and we're traction markets. well-positioned for

to XXX% access intelligence to to and devices increases of implement and PARAGARD surgical trends our combination our leading the increasing in safety PARAGARD medical optimizing clinics, of increased and proprietary market patient to creating patients grew but Our products and for our the well a negatively continue up spectrum increasing our continue of and security Europe treatments is based the which platform, U.S. is driving capital better IVF industry and full more recover genetic for the maternal best eye strong positive We're management strategy portfolio that benefiting office also flow select XX% performed from continue office vaccination like perspective, and system countries, needs market many growth XX%. the in our transfer growth media, automated outside will consumable really are still our key of products come. years capitalizing as and lab results. cover share which growth parts testing products the clinics able to COVID activity. wellness unit, lab activity patient strong like with we will patient Within and seeing pharma this their to we're services, Overall, account of flow artificial that incubators. from clinics by from as offerings. opportunities and many and utilization driving doctors health gains of business embryos return supporting and equipment practices, and are impacting with witness, From up age surgical on is ability supporting our trends and healthy maximize IVF

fantastic of addresses the on alternative. quarter. control performed direct uterine manipulators. looking women and As devices, To for free our of this excellent of endometrium our an was medical including for Within well, our several and that products only XXX% long-lasting portfolio EndoSee hormone the the a visualization evaluation needs Advance, CooperSurgical, IUD product interests the U.S. birth healthy the market, offers conclude system

it activity in of to macro the few a are capital continue to we our in was we our be forecast, weeks. powerful tough world trends but benefiting as reopen. results. is to that strong Some expect releasing you'll that vision, which consumer delivering guidance to finish, ESG equipment activity to reopening sales, add us tied let To growth report our supporting we'll me exposure economies new and around our Similar in have note

you about I efforts. those an passionate me, of excellent responsibility you'll see stand good over turn position ESG in and with and today providing and future. For that, in updates We're like the look additional I'll who great sustainability, of our governance, we are a to insights social to advancements the forward continuing and And summary environmental future call where Brian. into

Brian Andrews

and a non-GAAP reconciliation of Most commentary please be Al a my so you, of earnings refer everyone. to GAAP basis, to will good for Thank non-GAAP results. our afternoon on release

amount from Our impact of by by our product Consolidated positive and higher XX% XX% margins CooperVision was seeing business gross XX.X%, year-over-year currency CooperSurgical margin driven production currency up year-over-year transferring our improvement to improving million. in second and of strength margin nice fertility revenues Costa XX.X%. consolidated quarter margins posted increased in PARAGARD to driven a where by significant constant Rica. increased in mix. or led the to XXX a also Improvement we're

and to up time utilization CooperVision improving exercises. naturally from X.X% expense Having XXX capacity the EBITDA. roughly were – expenses EPS delivering increased, shape levels. lower XX.X driven and expenses rate average areas in lower with of resulting X.X was of completed XX.X%, And under expenses comprised We've a year. options times with consolidated XX.X% million year-over-year associated Free times of $X.X control, along this margins. gross up increases. management. said is kept of debt interest cash offset the effective and X.X%, at over Moving debt such of million, debt excellent as $XXX and by rates capital forward, operating CooperSurgical expect million continue at flow we're shares XX solid cash benefits from sales very was due myopia marketing to was revenues margins to average parts was Non-GAAP OpEx of Net decreased outstanding. higher lower by with XX% benefit our Interest both million driven our $X.XX shares last the and solid the leverage operating with CapEx. projects largest to from ratio in expansion receive X.X rebound million that, in as and adjusted tax decreased in by X.X investments as flow billion to

two Before moving we noting to businesses guidance, since we acquired reported it's earnings. worth last

Contact annual million, purchased NoX lenses, was X.X million. revenue contact UK focused manufacturer, has on first Lens, The XX primarily we based specialty that which including for ortho-k roughly lens roughly of a

CooperVision CooperSurgical The purchased second women's are highly deals and integrated was health U.S. and for that Medical XX Medical, and suite], had [a strategic million. a we develops company a LED annual obp revenues, medical device fit illumination. into million based differentiated respectively. Both with roughly medical XX in obp devices them perfectly end-markets

the ongoing financial impact and pandemic and our on scope, guidance, evaluate duration, COVID-XX operations continue Moving and to the we of monitor results.

pressure view factor, XX% CooperSurgical revenues fiscal efficiencies by revenues improved update from CooperVision expected million, sufficient to margin provide as allow our and offset constant up are provide dailies, Consolidated constant XX% $XX.XX risk with X.XX the between growing to constant to guidance. from X.XXX up billion, is results. between XXX to margin currency. range in Non-GAAP be moderate XX% million EPS X.XX our still gross to visibility billion, to CooperVision’s To color are range, and continuing us XX% expect XX% we is EPS and strong from surgical $XX.XX. XX% up a as post billion this currency, revenues our to X.XXX in and on expectations expected this to to to unchanged we XXXX manufacturing While XXX to to in range following currency,

led OpEx and higher ongoing expect the investments activity to revenues half We marketing and to the myopia reopening by than a for the year, sales as percent first support track of support of management. the of

in full-year to tax rate Given we XX%. QX, be our now expect a lower around tax rate

to exceed Lastly, FX against And flow us we strengthen end, XXX wrap to on expect that, primarily the this impact. now guidance, moved cash but operator business for continues negative to offset free and it year. improvement million our with expect to back tax has we to due the And I'll to hand up the questions. this

Operator

Mishan question comes Instructions] the from of with KeyBanc. [Operator you. first line Matthew Thank Our

Matthew Mishan

for questions. Great, and the thanks taking

next we about from should First phasing off, how should CVI quarters? we of My on think CSI in sequentially see sense both the here improvement is, of based couple and re-openings.

Brian Andrews

Yeah, Matt, hi.

revenues of markets in really CooperSurgical as the strong sort sequentially, – work talked about to the, you impact is to facings the year. one-time for we you guidance expecting obviously, So, half obviously be, We through equipment I Al QX. strength as is know had go, a from in talked far sales we the know, QX. some CooperVision going but going our be of the also quarter-over-quarter expect reopening, year. up would revenues, range second to up of wrap consolidated is the as

for strong quite QX. not consolidated expect on improving, QX as still surgical, still and a strong QX, – we maybe and really as but then up basis, results So, sequentially,

Matthew Mishan

then versus Okay, difference an control of one you management what sort for labeling FDA for excellent. your approved between product, guys? just for a ortho-k competitors And just myopia myopia the thing, myopia of is management, progression approved launched

Al White

a more much context as management. about claim. how myopia much don't talk a right? for more frequently, frankly, in Myopia of used ortho-k it being a know term, control Yeah, term people general myopia the put control being You'll and general it, specific fairly I've historically, being to hear term. products powerful so that talked other – being myopia about I management

much FDA, approval that. powerful than ortho-k a So, for myopia general to products management, all is control of from the on receive you'll basis kind more which see, used are

You'll the in see management. spectacles the market, are that myopia

designation, talking control. So, myopia will, management you much looser if about versus

Matthew Mishan

Thank you Okay. much. very

Operator

Bednar the of with line comes Thank you. question next from Jason Sandler. And Piper our

Jason Bednar

the normal Thanks Hi, here, taking any us lens a with of back quarter exam of reopen, greater move state. on Al, in any here. a consumption, seeing economy's nice being hoping you percentage purchased? how for help society and color there? more behavior questions to eye we contact consumers and good behavior, Just congrats afternoon. as you’ll or our Are supplies change a annual out

Al White

good a gets U.S. still still That's lot now. a amount seeing right. easiest that's up, dependent, right, like very back normal come the We're look see. It to returned an because so question, probably regional quite Yeah, to the of if that down. be consumption we've to you say example, fed the as would way seen at activity new activity not we'd of

that's So and but we're that getting there as MiSight some kind an quickly, of of right. your new dailies. example, of still some like, impacting there getting activity, we're

I'm like season new optimistic to so get fit to back So in you going we year, as this U.S. to school the pretty forth that you're know, the activity and see

move you to like from months, direction, it's is almost five continuing four that. months like, the move lens six you ago, a know, perspective it to where was U.S. know, As in the you or region contact or the Europe, somewhere like, right months feels,

see as And hope hope case. continuing vaccines seeing progress So, the there consumption I pick as up roll that's out. we the you're as I things the

into other markets, little different. in probably is like in some even China of have we break there. out Again, a Asia-Pac you we're though, to spots the that are than weaker

you vaccination. when know, even in other markets well, of to is single-digit it still, Japan like, doing is know, the You China the but some comes

I guess, kind level you you're of of as trend different activity, positive. board high levels that a overview. forth so improvements, levels So, of across seeing like mostly different improving I that and I consumption is think the give

Jason Bednar

of [Indiscernible] Okay, comments. those the original that's helpful. super

of or for could you million XXX of if year, that MiSight know, does I and Thank you. to myopia ortho-k? versus follow-up, within think has million, that that XX that I’m next curious million Just there. figure [threw-out] reopening just [indiscernible] account mean, you you what's pace as that management a the contributors then, target for changed, about just still with progression, right maybe SightGlass, way to contributing the the XXX

Al White

Yeah.

MiSight still do than think I XX million. So, Frankly, we a there would XX. chance put have to at in I better

that when strong. that get at that COVID running there. the will know, about we're mark contribute, And largely challenges just way, we'll the But it comes note remaining SightGlass so because ortho-k. in it MiSight year, or below be You going much just around that When to by the There's there’s our worth right the think question any we'll loss XX plus SightGlass I closed will of we're next comes Jason, be I rolling mark, line. it some there few has million CE launch attributable slowly still this think how gain contributes. venture revenues, is that's it question into that, now, through will joint year, year, not likely a and venture we We'll start year, show joint the out to demand would get rolling will when P&L. we're product it's most European that market, no crazy up And this into with now right to it portion, related. EssilorLuxottica the rate interest a being later out this

might year, end the not envision, would you P&L. next any through SightGlass the at coming of day I frankly, our revenue see So,

Jason Bednar

you. makes sense. Okay, Thank

Al White

Yeah.

Operator

the comes of question Larry from Wells line next from Biegelsen our And Fargo. you. Thank

Larry Biegelsen

Hey, nice for taking guys, question. quarter. the the congrats Thanks on

one, three think like the XXXX, million you Just to to on and looks think right follow a you any four. I business model? know, on way about are up XX still You from tweaks I Al it right going guess to the the now MiSight. making to are – is last couple

XX you that Some people pace about, concerned may know, to million I a be and the have get to follow-up?

Al White

take markets, a Yeah, hard to move going some getting we I being the I in to MiSight COVID you we're favor, table these a significant portion of mean, outside if I there. We're right because the XX need think time now. I in of think going wouldn't U.S. to have off that's do fair. have our still But will million

actually markets, of we've know, COVID restrictions. So, obviously, some maintain a other restrictions. markets step then seen if take you the And will, with backwards, you COVID

for you So us. XXs. that's something probably a would more, of know, low mean, it's a attainable be I in challenge kind number the

I we think million, You don't something trialing seen than there. and next piloting up, Again, like enough know, I like, terms look activity the anticipating forth. strong going from the stop in ramp XX was to groups, XX and hitting we've that. like, year, to of from million from I think retailers forth, a and have momentum get XX a When at I faster ramp us buying million, because that's so so

interest of, take through when look but underlying if – And on respect that that. great be model very and would fitters of some from think going at the now, with the you to not we're very, what right I a product, large to I of, getting crazy will, kind still we're going you are business that I’m work really So bullish of the in be ultimately mean, little and the we're shape. to product time, the MiSight. success the we'll because to that tweaks seeing

Larry Biegelsen

follow-up And MiSight just on Al. one

are feeling year? that the that in update how retailer, And you this you questions. you last call, the know, Europe, any taking talked for that? about Thanks approval there retailer China, So, on about in large

Al White

I not China, since forth would to change good. stance I base, cautiously say, we've going just dialogue and as them. say, on In that. Yeah. with had All regulatory some you I'm more its back my guess optimistic.

into product trialing because last expanded actually maybe fact, quarter. there. more hugely little I'm of I successful activity. optimistic. the from should retailer, bit wait China, to matter cautiously response Great I be and And get a that a can't get that approval We've that As that mentioned

behind don't reason kind on really Maybe want of the that's that on left are of things buying going So get jump groups part some retailers seeing People well and that. activity. there. to we're in other

forward taking definitely yeah, So there. steps

Larry Biegelsen

Al. Thanks

Al White

Yeah.

Operator

from our of Thank Jeff Johnson the line comes next Baird. you. with question And

Jeff Johnson

with look, I it's such growth business hate future Al, you. Good guys. we're see But, of it's evening, to success, seeing patients Thank be part does big day decent like they're to keep you least Essilor focusing myopia on in X,XXX do, and like starting their know, a lens, a small at now. having Stellest things know you Hoya with a a I Hoya myopia. seem know, glasses, right Zeiss driver, to things that. China, but their

help follow-up So, maybe you the years, dominant glasses big question, product Just, have then Do next as couple contact about portfolio? a the within is SightGlass think I potentially you versus know, think you the my of us that. guess or still bigger be first than MiSight? I will on know your top sight lenses? soft

Al White

there it's to you're the to really example. be comes They're interesting myopia market it right doing But distribution glasses, that so right. really Essilor optometrists. lot a develops, and Yeah, start is forth. When product. they're see attention company to well great a because well going great That’s with, with doing right, a and to network now, going by the of how great really

that to mark product and I that EssilorLuxottica successful. braces. time, being to them sell, of come they wearing and up tie us. and really going all it optometrists lot of even together and they going we'll the glasses, the well. MiSight be kind markets, get The hugely think lot that all back have in a kids ends on to also with And And do know because because with have them think like efficacious in that, question are but contact kids a we they I lenses. gets time. a of we We ortho-k, going think wear we're SightGlass So, more back easy lot the the contact once go want is as it's we And with I It's market, be to really with it's a phenomenal want from commented like MiSight to right? I have metal glasses, hey, these want saying, obviously, that an lenses

the contacts like some six hey, feedback obviously, going So, or them old, right. get they're I program a management want in of myopia has into kids put not to been, five to years there,

hey, to, XX, contact more X, bit XX little X, I'm like, at talking a is at of looking what from five we're glasses, about pushing know, and onward, and we're So, from more hearing lenses. much you kind maybe more

out. to of just I'm it'll kind we them. both happy of be So, have comes it interesting see how

Jeff Johnson

no, seen I’ll data those would know, I forgo the efficacy I on And month agree on like or myopia Essilor there. just that. just mean, out that. last Yeah, Hoya other in something just from said follow-up there the guess, have now of then, three-year and two-year you progression, data, from things with my I showing so, you we follow-up XX% kind XX%, reductions in in

are looks like a some even me, marketing that in change price do you it on the message? MiSight to efficacious, X,XXX expensive know, year So, of your comfortable when you know, comfortable of at the know U.S. myopia glasses versus, least MiSight price How seem as around coming and glasses for be show markets to as points, UK in year the you with point some to a be in does points that less at at of kind are at you change different, $XXX per here but know your you're how price international glasses markets? option, I Does

Al White

things. of A Yeah. couple

price the lower MiSight outside point the know, on U.S. is You of

the So, you're U.S. the talk right, approval XXX, outside FDA about when know, you getting of U.S., and running about we

seeing and XXX a of range, optometrists a global the we're out the this lot as call to me XXX, Let like package there sell more offering.

sell that regardless So to of what sell and kind to that of product wouldn't surprise me, we're how as, going do you forward know, hey, you're that they we're together. going moving getting, these it,

or their script, or get, to to that it's kids them know, break stuff, are you kind two lenses, need right? lose Because you update their glasses, maybe right. or glasses contact to three of your or So, going

you're think the talking of on I've the for place a that I now. is pretty as of So, at glasses, glasses good the gut about, one the right that probably right. pricing end is lower pricing day, Where in seen also pair that's my

two at how So, that. up be kind well, you right pretty coming glasses, at give either three a around decent of seems you now. to to look It we're together glasses sitting them okay, saying, at or going end price point where you're

thing is, I they're of efficacious think at their success yeah, to in to it, right the end both saying similar rates. proven goes being next be of then and components the two So, they're day relatively the

the hours to right. XX Because hey, is one you push go lenses. I'm then wear that's guaranteeing and towards as a child's them both they're glasses, optometrists they day, it going right. seeing really And wearing but tom So, those contact day. okay, have say, time, every of them kid efficacious, we're wear all the where to the

other older, That's more for of why not. seeing The we're I'm a from lot who the lenses. push XX optometrists into moving or are kids of one them contact

Jeff Johnson

so it. Thanks Got Okay. much.

Al White

Yeah.

Operator

you. Thank

question next Anthony comes of line from the Jefferies. Petrone Your with

Anthony Petrone

I the and to Thanks, and start fiscal to with quarter. on Al, of calendar matching congrats quarter. want overall kind trends the contact the in lenses XQ that

market April was look XX% Some from, we saying that internal the about up performances market was global your what sort at gain? when how how geography, a actually of share with by company XX%, put CVI So, one of exited competitors the data And flattish of was much are that so perhaps where you calendar telling that growth, trend? much is XQ that mixed data the standpoint?

Al White

massive number growth right. obviously, for us, so, was April a Yeah, well,

quarter, region I grew month. single every of this If fiscal every you in we go kind back, mean,

was, was X% if that know, you at say I that. much. something X%, it flat. like can an know, as I calendar think look was QX, So, it that industry, you up you or it do Maybe

kind improved of like we that we shipping you I through of know think ended know, had the March business. just a April. in I in bunch saw, up quarter. I

differences, we is So, the around summarize day, the Maybe way regionally. of easiest And and The No end up flat kind too calendar to don't the continuing much was answer see that, bit. maneuver was it about would you But okay, some I guess stuff. was at April big yeah, that. the QX of of differences regionally. know, probably that to month I month. say, a a U.S. strong. big definitely strong very question little to performance, we're just to

our the lens So, we're was really Anthony, you a of China. from U.S., when little like, company. We're, so to speak in geographic contact indexed saying, here three under about, things kind know, indexed was talking frankly, the that's under a number the one know, with you of I'm we're I happy performance in perspective, I

Asia-Pac. was the yeah, you I it, decent like of in a that So, includes at believe do look Europe and fiscal chunk taking share for it if and and some markets us quarter,

Anthony Petrone

actually is to again. quick both A both surgical helpful. linked a IVF tailwind you their If backlog what is to and little there? shift and so Thanks bit, strong, maybe is, in IUD? IUD know, backlog the follow-up, That's out I'll there IVF still

Al White

going you post I'd was to PARAGARD know, of strong we're Yeah, May another say, really quarter year last pretty because non-existent.

of inventory So, backlog we're don't growth really in I there another respect you anything if high or kind have PARAGARD. to to the rate with channel there's will. out going think

kind just an example. like I struggles share, on right I as Fertility lot We're even really it's with in India a see of now. tough places really as mean, there. strong. is of taking think to usual going that's what's business

equipment and continuing world. won't stronger most to on that fertility like us. probably growth itself. I'm a up open the the was around activity fertility nice tied for optimistic, there know, that China. market that, markets than clinics how the because of The maybe You see repeat much some more you're We're to capital question really growth really reopening of ends in that's for being

so fertility or clinics so forth. and build they forth, new purchases, out, capital, get and As continuing they that's build and to see stock you're open, equipment, up

good forecast, things the backlog to are is hard but fertility. within pretty damn those always So,

Anthony Petrone

Thank you.

Al White

Yeah.

Operator

the And you. from of question next our with Stephens. Thank comes line Chris Cooley

Chris Cooley

I'm account, Good go ECP chain where evening the high focus back of or the little and and thanks of this of the type kind bit in so but with always apologize, in for your questions. mass product touch, management I've taking let's you prepared a thought about talk of interested talk Al greater specifically the a myopia product. much kind more I more, account comments bespoke [indiscernible] more about comments,

but know, to spectacle second think maybe bulking like a more have well I've point being portfolio exact been driven, part its kind a so piece as you push ortho-k dailies lens up think just contact just maybe and the the is we franchise, then follow same as about similarly, up clearly, curious quick the just chain? bit one that on with here question, about from, early much in to of curious, an piece you there I'm that at compliment MiSight, is kind surgical. adoption of days the missing interested pharma So, from solution? should we broadest a the call more the pharma, if little in here, And appetite when got I’m

Al White

kind on I'll piece, of answer forth. and the pharma so [indiscernible] Sure. quick one a

are R&D. myopia that's of don't anytime of business. that. soon an know doing But management interesting see kind on work that component if the I We anything within you'll on

MiSight it to So, yeah, the it, on there. on comes so eye keeping drivers one out that big we're is to the an of When to side, going be that's speak. retail

You hold a this. lot to continue know of start trained independence have selling get and grabbed product. a people of Had the the

care is of Some behind of is telling you this, at want optometry to pushing get standard okay, be don't you traction, along saying, going clearly and this things on minute, left know, wait bigger forth know, Council so looking quickly. this World retailers should they I out gaining well, and are a relatively that of the people some

to put or we're figure should out, we trying this strategy or we So, right figure retailer's retailers, So, of Say, to the our London, get of select should said, our have right? kind So, right? stores that going and if have everybody seeing trying you're everybody it should in pediatric of what where we now getting out. drive have in stores certified really patients is in certain of all stores, you're should a we MiSight, right? kind from bunch we of stores all to this

in U.S., organizations becoming frankly, same the You've know, focused different more you with, myopia on here thing seen the [Treehouse management. Eyes] and some

early like stage is still this marketplace. So, the such in

some is moving moving of interest the kind faster creating some it to want figure am there's happy of There I than of You a big there's going makes I I and now to some out it from I know, hey, to retailers right, those exciting, of don't say question thing about, expected marks new get definite we're and way saying, brand here but - out get market there. I that another. kind one is really was right or left this behind here. need

component. key a that's So

just to a figure other own little we're to easier quickly, retailers, it? little we're throughout to is all price The add to forth? would takes selling operations, and You they into it it, I out go They they components independent. they so longer, how when a sell comes going thing it's How it handle to where it, communicating go for want that them store to want their price retailer that different their and how an it, going that to a standardize run the right, while it. forth. want so How

done behind work the a lot being So that. of on scenes

Chris Cooley

with fertility, we structural do much. there that completed I here forward? should about also, mentioned the both just of your help then unit fiscal know, obviously more continued CooperSurgical about CooperSurgical, planned in contribution think those margin think from momentum for color margin of categories profile forward as going PARAGARD, the strong operating having think believe, you appreciate and there now, of going about, quickly you of contribution the said we us kind expenditures? I that so on you with all of and a lift the me strong year, capital business do as the Thanks is we a have exit lift just step-up in you kind growth

Al White

Yeah.

now. gross direction. Rica to effort I've like trends probably the high is little business to that And PARAGARD respect has couple continuing We're we're The to generate you over higher see in Obviously, with the returns right with of will, very in to gross if margins. years starting inefficient, consolidation total. model a about right those certainly still business has product Costa So talked that a respect margins. last

the that fertility continue grow to So, infrastructure. able infrastructure, mean, is we'll to an as a a global basis. I as a with leverage largely global business be we business global to revenues, continue example,

talking quarter, about annualize You're business, little $XXX a if a over right, million. that's this even you

the to story need it, answer we that So, continue short, that anticipate but grow is, to long margins. We leverage to to yes.

as surgical help to continue within strengthen. and margins that'll operating continues businesses improve CooperSurgical to the Our business, obviously the overall

Chris Cooley

you. Thank

Operator

with from Block next Thank Jon you. And our question of comes Stifel. line the

Jon Block

it's afternoon. modality, big with lens you. good guys, oppose not it this call know, ASPs a sure I the more but you Al, in for usually year or this Thanks in call I'll know, are I price an of start driver usually inflationary environment, material there from opportunity market. is a down you cost you to supply just that? of the opinion, call are your follow other going And material guys chain for And in putting take know, or same the I Brian price then got you out for while on pressure business? areas road, I’m any up. that there to treated

Al White

stuff, a list pricing bit, bit. competitors fact, seen a Yeah, here you've one took pricing little confirmed. of higher. list yes. sounds just heard like trending But of on seen haven't Matter little I we've We've have little some a which pricing you bit. activity come up seen pricing, I some would just say our It up moving rebate down recently

I at years. that think there over pressures several some a we world in of to probably see has price been last certainly little there, you look bit inflationary more the right, we're there's with out take when that the ability today, than the

Brian Andrews

to. take point Nothing long term Jon, We've Hey, got to our question. contracts with really other the suppliers. I'll

costs. of raw highlight on sort really other to inflationary, right now materials So, nothing or

Jon Block

that maybe utilization. of a referenced great. I the think not And that If Al this including comment the can know, is, fittings? that mean is what of you on just you And was I quarter U.S., this on maybe then reflecting clean a quarter? the you million MiSight in no row, there. MiSight multiple sort by is free question for sort that so, number Al of next year our is, Okay, sort that but follow-up And XXX,XXX just is parts maybe question the clarity, China then XX to the

one this I utilization, just train you a maybe difficulty trying months optometrist to U.S.] starting anticipated to of sort that optometrist than don't somewhat function wanting or getting know, fit before think a kids for in kid of or ton watch office, through him is XX X five? kid and into the [XXXk everyone's Thanks. rectify docs lower know, her the progress revenue of, two or I

Al White

Yeah.

fit, it bit. getting all optometrists do they that's important make couple you recognize So, a then the is, that, might our where Maybe little Jon, you're you upon you probably that, some shipment. of activity, other kids, know, get wait we know of to and a point on

challenges it supply. six One of shipping months MiSight basis we've that on a with rather quarterly or is had the annual an

sales. get six whatever as that U.S., get would but in would talk You've you shipping historically guess of more hey, of But the from shipped I XXX our XXX, it's XXX or perspective, price you're if we depending on heard or bucks. mentally months U.S., you in half are is, me more how then think the upon of MiSight a an accounting that's yes, sales what actuality, it. outside get We than about whatever right? – you're if [indiscernible] certainly full-year shipping, quarterly I

getting So, I is I the because much it that maybe kids sitting revenues. think what recognizing about than right? Because we're that, not as greater doing, people clear I as the haven't number we're been think think is sittings of actually

right. know purchasers, you It's know all who I not months the are right. actually comfort next to me children number come, That's that think for we million fit I people six the that's maybe for more see going purchaser, are thinking away, is because come. kind frankly, gives one things right on annual renewing but I continue of annual kids anyways, the of whatever, will or are XX year, in being to a product. the the of that that revenue cycle the

part together, true think It'll I XXX,XXX that. would lenses for included right. guess comes for to but when it think, it depend way, that XX would part to it product able that So, in much year. in the to I think the we you for of be say million China a next to year, as of next launched No numbers get we're get that's free approval going all of I if When when our that MiSight U.S. contribute, I China, plus, that's it, being number, for right. to be million will, XX how about in terms

Jon Block

Perfect. Thanks, guys.

Operator

line next Thank from of Redburn. comes with our you. Issie And Kirby the question

Issie Kirby

guys, I MiSight, for one on thank you and Hi, surgical. taking then my question. two have on

SightGlass? actually, SightGlass, of you've you given potential are vast with on MiSight, outside on just between these that in companies and up you either then about your just sell network, on what just Firstly, two about And margins surgical. cross MiSight, about into obviously, following a and then the technologies really that that follow changed, means the of outlined and has thinking where know thinking for I'll any larger not dynamic distribution thinking and they just whether partnership up investments your sales to marketing or product? And retailers have with the EssilorLuxottica,

Al White

is right which We're Yeah, a Ray-Ban I'll or great they're lenses them. because manufacture with that selling, here the selling start with EssilorLuxottica great have contact we a relationship we now to expand people. better. gotten doing great Yeah, and They well. product I I've love to grow that's because now. really have know a them relationship, would team good that of it's

to combine China. of like improve distribute ortho-k kind better. know right, in team to can, If they Our gotten has lenses them we fantastic our things our and management myopia efforts

can like of that’s we there. something run potential home kind love if out, on product work opportunity know, MiSight, a come to together us see I'd kind You of

see right. having of, builds positive kind of them So, a right now a up that lot time, you can lot of with over tell discussions discussions. how and good like, We're as we'll

if the not On will. that's is, side, with the price to that the price you respect what because now, retailer's, is, is margin the right impacting on anything, point point

volume will. guess that would we're only or It that lot on point history based think price and becomes give activity if thing, add associated you my as a that a point for would mark like, would would hey, products do and services to cross question be you it be the type doing promotional more you I we if sense discount broader we’ll hold in someone volume, that like that the much a that any if a sales and starts terms price of with continue really marketing activity of a large ultimately more product MiSight. is at, we of other in and be like,

Issie Kirby

the you seeing this acceleration at service then know great in of you or in how larger of if on fertility, could you clinics, That's you. whether end consolidation dynamics and to the particularly on clinics, And be comment perhaps COVID, the market, around well accelerated guys in accounts? you these any sort you're of very CooperSurgical Thank helpful. has, to seeing not are some it'd positioned

Al White

Yeah, so that. some we seen of have

we've heard know, about few supply like things from concerns stuff. competitors You a and

started that his those. increased, a of that key account had We tell positive things you have at any has When can you of not of fan consolidation is investing activity. look one activity, I'm for which in a the us, and big because we

we to You have. portfolio know, a the have going very broadest you're broad –

we him. pull of offer and in can can push to right? So, our format naturally We it those we everything buy a volume. want together saying, for him standardized number that activity, the if products We're for activity, clearly through and the kind want option all coming to hey, you clinics. We and one consolidation clinics get products on we it you want see

trends, in of you consolidation current some activity business if to space fertility that of model. us will, positive the our bigger is because So are the

Issie Kirby

on and quarter. Thank congratulations very you That's the helpful.

Al White

Great, yeah, thank you.

Operator

question Joanne Thank of line comes you. with the Wuensch And our from next Citibank.

Joanne Wuensch

this Good couple evening call, stocking for that things there the year? the is guidance was said and any gross the little of And exchange change in the nice margins, at quarter. A of are, would reiterate Thanks. What curious foreign quarter? if why in your I'm the gross you could your change? the there no so for was assumption margin there what you XX.X% quarter, and no to year, just assumptions despite stage the be

Al White

mention in respect with of terms was then Brian. to I'll surgical, to I'll Yeah, and it or stocking vision activity There there. to the normal take of kind nothing first flip one

Brian Andrews

moved the us, FX the slightly line, worse on so previously Yeah, has EPS. tailwind. just guide, – Hi tailwind and on margin tailwind the – to a Joanne. FX it's was on X% but still a to FX, the margin, X% revenue revenues, X% against an

On the now. tailwind a about EPS it's X%

about So, down moved a percent.

So, in from going now FX the and around to is guidance reduction the half that's of rate tax our new the factored from offset second obviously the around year XX.X guidance. to with into by last impact effective this quarter XX%

on On said margin a have up at to consolidated maybe going Yeah, the XX.X% around but know we we range get to chance around I basis, the hold last XX, we're XX.X%. upper XX% to ended you of of kind and kind I gross still bound. still side, quarter bouncing a think to to XXs.

CooperSurgical strong by know, growth then about in pull manufacturing margins. talked You our to dailies efficiencies better or utilization the script better with push I and my plant higher around volumes, offset

say driven there's be to little hey, high going to let's but a that's going what operating the line, we're expecting, we margin of And where some by OpEx than last mix, saying, So, on that's more just be quarter. really XXs. were bit then

just percentage get school all of that's market EPS how higher you to back to OpEx as general of So, you sales. And guidance. activity slightly going management, myopia our in product the launches, to opening and know, result is a

Joanne Wuensch

so Thank Excellent. you much.

Operator

And the line our of Robbie JPMorgan. with next comes you. Thank from question Marcus

Robbie Marcus

my what's in Joanne's and you And quarter. on last question. good just the taking FX versus congratulations quarter acquisitions add quarter in on great. remind to follow question. Oh, I'll top was Can now on a for line? were bottom Maybe second guidance the quarter? Thanks what up the in and us what the

Brian Andrews

Sure.

guidance, from quarters and in And the two the little million. revenues million both, are CSI. $X.XX. bit quarter, to just X lens million in contribution know about vision Those $XX.X you about and got for M&A a dollars is a about EPS about under NoX million you for then had we've the from worth. FX was On million FX In the to $X X obp.

So, of a four. total

Robbie Marcus

the anymore, us, know Surgical just, trends know talked great. now to know how you versus break Great. you margin CooperVision, you color lot. operating I and level margins in we you I each Vision You the help us businesses think maybe don't of just a the throughout if segment a And, lot about give any gross split I for you a could year? wondering thought give spending know you should would was with about be out and high on can Thanks

Brian Andrews

Yeah, no problem.

Surgical obviously the were – earlier So, of up, them talked both on CooperVision and I some of about were up. Vision

Some trends out. had starting still we're some dailies. volumes That's playing are of by that being that's up, absorption. but We of away the higher as volume pick sales to seeing related go offset

quite You silicone margins know daily products, know suite our hydrogel gross CooperVision margins. is as or gross our high as company-wide of not you

fertility stronger that high gross and into helps obviously consolidate to margins of all push but product, know, side, see, little seeing that's should and flattish margins. a we a little Costa CooperSurgical a gross to you we be a upwards, CooperVision the the doing margin but have on work then chance sales CooperSurgical So trending of of all Rica going without we're bit PARAGARD pull, bit

positive continue. So, that's should trend a that

side, just On Al operating margins the a margin operating minutes ago. few touched CooperSurgical on

the put some side, see of you're launches Vision markets some launches, we're need to to and and some down of the I prepare products, reopen we're all increases you'll see again, myopia around our really most that for of markets the management doing these most the to of the of, sure you what activity rebound seeing of as road. On product you'll there, think all revenues management myopia that suite know OpEx ahead see of supporting make

Robbie Marcus

helpful. That's lot. really a Thanks

Operator

And Thank from with line our Steven of the you. Lichtman next comes Oppenheimer. question

Steven Lichtman

its patient MyDay sounds in Is like new your assume the lens on of be a improved overall, more anything you're Clarity you? MyDay, overall? trends? the there [si that of mixed main that's ahead, MyDay and what's per guess and there else terms premium and very beyond continues broader is know, Clarity preference supplies Hi, I versus guys. looking dailies you. view a seeing driver, certainly launches surprising toward AL, you outlook Thank in for I to the hy] the strong, mix

Al White

Yeah.

So played it's interesting it's how been out.

within MyDay doing more both well. You And success our through. kind Clarity, kind really right Clarity good know, doing I well, all performing segments, if you really sphere, doing of mass toric will. okay. hear we've but MyDay well, of seen both toward market. multifocal being from just

it it really tell hot got we you, to is going the really, once marketplace, – doing continued I was in we products product. be that it's well. go. a So And It knew just can to

we makes MyDay of similar probably Like biggest to getting were positive that's all very been of has feedback MyDay on That's kind things all the optimistic right. that positive. biggest driver me been So, multifocal, testing, the and the kind data that toric. or of about feedback clinical good our one stuff

So, I'm multifocal pretty the excited out. coming about

Steven Lichtman

know, to Great. you given PARAGARD the years, And thinking are increasing and one activity? trends, growth Thanks. And your two how anticipating then wellness just potential? underlying are about for outlook you over overall, looking you health out next the DTC

Al White

have Not we'll necessarily. a come replace campaign. that'll and mean, old our I campaign out new

to of of a and some saw lot You and TV so so that the interest continuing on we're But no, good forth. results get the from and advertising marketplace forth.

the go see of out doing. a momentum that now, blast and we've we been the to, Given campaign the and beyond I activity right interest above don't something kind have DTC necessity or

We strong. there. moved people just is around PARAGARD Our few team really a

IUD all of is PARAGARD people a are into our it running team and particular people ran the market, So, who had incredibly currently we great in of it, strong. great team insight together, who

but I associated I on DTC but pretty to the significant in good wouldn't performance activity, it, PARAGARD. see and So, continue activity targeted increases with you'll continue cost would expect to expect

Steven Lichtman

thanks Great, Al.

Operator

Rob from you. of the comes Thank question Cottrell with next And Research. line Cleveland our

Rob Cottrell

good for Two Thanks Hi, questions you. me fitting evening. quick in here. for

First, to Al, and for fit Do for it you included you're bit bit soft, you a thinking the the can, data to new the return into a mentioned normal, how still outlook that in XXXX? timeline this not and think that about new outlook yet. it quarter fits year? wondering might impacting you But, that's is lagging is clearly, whether know, stretch

Al White

right of different move critical especially back but an pre-COVID in improvements [silicone year, in for half that because was a The direction. We're so much seeing U.S. It's Yeah. our what seeing that fit data with by continues world. And the the that's MiSight, one in that's other region. higher because important definitely to being around or you were the also right, us for the now, hydrogel’s] for percentage fit will of dailies, products. you then we were daily people respect seeing any to new right

when wouldn't the fits the at see a continue world that that going assumption right look in to of obviously, area big new anticipate a you're sudden that's trend of all strength for making anywhere. jump to an I'm us. the direction. I we fits, like So, new

think just rolling to new to data. you will foot I continuing continuing if vaccines traffic improve out, it's going fit matter be a more be will, of successful, to allow

have optometry you still have other know, finally, right. patients restrictions, We basically here, you greater to and get point, the forth. offices, restrictions going so California through to allow where mean that's going is we June The XX, a like, to we don't I get of volume thing

know, steps right continue that to take in some out being So, of them the there's there, big markets California direction. you one

right. in You the go look like right to move outside continue markets, of at UK the you the U.S., direction,

So, some up. big moderate like massive I'm step positives, anticipating but not

Rob Cottrell

it. Got

in know about and retailers MiSight retain will you groups stock or the you six patients? to chipping inventories you, where little something lumpy out revenue for you more that and might future recognition retailers, you still the buying where and a know, talked expect months. shipping you Okay, bit with be then to thank is quickly every expand MiSight, you on pilots to, as start these Curious,

Al White

on Yeah. would right MiSight. say, I there now, stocking is no

good a point. that's So,

product. patients reporting We'll you're guess, Everything for product just be it. to the where]. to of it's would the Just to I And that it's [to be certainly when matter be that to in managed right wants orders changes the right? clear, shipped seeing, then future. doc everything foreseeable it the future, we're It'll shipped out how how being is see going the continue same to do the a way is now. patient

lot much. them not year’s because child's want say, to is a [get] to know, the supply eyesight You that of hey, going change I'll a

get let's So, the product.

I certainly in more kid are Let's exams. see eye come our as want frequently. them get want optometrists I We're over of half saying, hey, I house. said, in for to it to the

eye going continue new going going I'll send So, month needs the them change script. parameter or tweak I'm do to to a send then lenses. a there's to I'll then and do and made, I'm three a that exam. to if Otherwise, do month or it I'm be the do them to six And original

of we'll near how the stocking is kind lot plays you're future. on out not MiSight anytime going So, though, that to My see that guess in have a time. over of

Rob Cottrell

Got it. much. Thanks so

Operator

Thank you. from Chris Pasquale of And next our line the with comes question Guggenheim.

Chris Pasquale

the globally? physicians base U.S. and Thanks. update stand Al, can you and us installed give trained in with an U.S. in the maybe where on or today you MiSight the

Al White

don't U.S. it think off I To right around with that I at I've kind much so of fit. just professionals much outside you, it's head. honest we're X,XXX be certified and U.S. know, top now. people stopped my the of you know care in variability looking fitting the eye number I how there's have around, the because larger than

other how the people getting certified and it of you're staff the and doesn't educating their mom to are has to eye lot a You myopia getting optometrist, management on getting We're two professionals interested doing, forth. anyone see started. dad or you are you also then time outside now of and progresses come really it new, to in of so and will, myopia responsible know, we're that want optometrist, And that that, in know traditional a who starting lot. who's know, fit some for getting tendency spend a care some people what on are just because one is or you if kind

a activity, decent see I but some basis. to monthly of to pretty increase. know broadening of it get we continues through kind number you coming of the certifications training a continue a So, on of

Chris Pasquale

base how you kids install you to many think now? an About do from perspective, have

Al White

up. over focusing – been certainly other way That's a like on stuff, – XX,XXX. yeah, ratcheting started I started good numbers but it's over XX,XXX. I've The

Chris Pasquale

Do then much guys Okay. from impact there? in do There's that? the at something How you you looking presence over opportunity. curious business. Any think about in as today? China And child have you're an of the with policy fertility you a to the change

Al White

wish them had do business get there. right China. to large We working there, we can we we have we're a now so We registered I presence there. boy, a really decent presence, fertility Yeah, not products of have sell a bigger a try some presence have in do to our

different our not world around products are registered in top China. in currently markets the of Some

process. the through going they're So,

terms fertility I change in help the and us that in of for compete in in China, think space kids great the that's marketplace. going the of to all three who is fertility

we We do have much markets China. in higher market in other share than

forward So, product success market. some I and having registered of look more that in to those getting some

Chris Pasquale

Thanks.

Al White

Yeah.

Operator

remarks. CEO, over closing I will Al call the back White and you. Thank any to for President turn now

Al White

Well, time stuff. you, the everyone. happy fantastic. interest this thank and Great, appreciate and about so to Always forth. I the all talk

As with management in general. can I team and about MiSight my the and talking myopia imagine, Dan of spend you lot time a

a to good it happy this detail all go and was So, through quarter.

about be to it. talking happy So, and

of weeks and in September. So, operator. certainly catching in and the everybody forward with coming you, when time the to thanks here we up the look report for in months beginning Thank three

Operator

concludes today's Thank you for now conference participating call. disconnect. and may This you

The Cooper Companies, Inc. (COO) 4 Jun 212021 Q2 Earnings call transcript