- Earnings call transcript Q4 2022

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Operator

Good afternoon, and welcome to Cooper Companies Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions]. I would now like to turn the call over to Kim Duncan, Vice President of Investor Relations and Risk Management. Please go ahead, Ms. Duncan.

Kim Duncan

to earnings Companies conference welcome full quarter and XXXX year call. afternoon, The fourth Cooper and Good

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

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

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

to I'll results will e-mail GAAP opening provided Relations additional on our now turn our following non-GAAP to is quarterly you remarks. as Should any results. the set are risks our actual to XX-Q today's the And of differ caption coopercos.com. methods to questions non-GAAP actions may financial forth well and data Form are forward-looking Forward-looking information we forward-looking filings statements statements call our his company reconciliations or on the as a a under Cooper's Also assumptions, under results of depend for over Investor refer as our XX-K encourage at in and that please you call, including consider the those on from available available provide be in that on could the filings, in to described which statements supplement section of under Form the cause is uncertainties. this earnings and are website call and and GAAP Events We as subject our website provided future our information. AL all imprecise in release, described release which the reminder, earnings SEC or to materially incorrect have and are ir@cooperco.com.

Albert White

with fiscal Kim, its and Cooper was Year-end forward very I'm continue dedication organic another Companies seeing strong Fourth of that within in for eighth services and and revenue and fiscal business. our Quarter you, consecutive CooperVision and in the extremely in Fiscal its fertility Call. CooperSurgical, growth revenue welcome, quarter our post QX, year hard an double-digit Thank took posting and seventh everyone, year fiscal organic to it Cooper we're double-digit reporting Conference quarter of consecutive to growth XXXX. Demand work into XXXX year this I products and employees XXXX. finished We another of the to look record of XXXX, revenues proud record-setting of

reached of quarterly numbers. high fiscal and the Consolidated closed revenues revenues of record up posted in posted high up million, record revenues CooperSurgical of of fiscal billion. a reached XX% new million, organically XX% record quarterly $X.XX and revenues $X.XX revenues of and billion. new to reached billion quarterly Moving CooperVision year organically $X.XX revenues. million, fiscal of year year $XXX $XXX $XXX we an record with the all-time

CooperSurgical's primarily this distribution costs due led earnings later broader elevated was device Brian were and Non-GAAP per portfolio. broad-based to lower $X.XX. we products, spending cover were was hydrogel call. medical and PARAGARD by growth share in than CooperVision's our tied launches the quarter, and This forecasting commercial product silicone management our myopia and growth fertility to will the For while daily strength in portfolio with was

Americas and growth QX was CooperVision in organic an performance all Asia flexibility and growth product key new through our offerings EMEA ranges, Pac and grew strong basis, was and all reached by This product customized all XX% For market-leading spheres, revenue and expanded on in and XX%. torics across geographic driven The product accounts. in diversified X%, regions reporting was categories, up percentages launches, multifocals.

Regarding in MyDay portfolio we region. clariti the the and and Asia with especially XX% in available range Daily contact from Pac lenses and the growth multifocals. from broadest of with spheres, product growth driver grew lens broad offer details, be the the MyDay industry, strong silicone on for main silicones of a and daily hydrogel continue to towards market clariti

Our quarter Avaira, growth. and silicone hydrogel solid X% FRP another lenses, reported Biofinity of

strong meantime, active. price Regarding the Biofinity does launch only MyDay, focus product technology and multifocal capacity forward. many focus national daily our incredibly offering MyDay in Outside tour customers market-leading rolling all the to to rollout outstanding. started launches, we this continue feedback In wide look MyDay be toric the is The practitioners and on forward expansion Combining broader constrained. a contact space and remains the from We've to technologically spring. out and care launch success. category full parameter technology demand well, hydrogel going market enjoy practitioners activity, same expand lens market. additional for Energies the Energys be remain is a MyDay This this made-to-order is in are parameters to CooperVision's We extremely through alleviate expanded the daily remains MyDay this early and scheduled seeding and capacity We'll the demand continued toric variety we lastly, FRP has we're to and as their a been move scale the over range bringing getting eye the daily toric Not of eye torts offering. multifocals, U.S. X,XXX for innovative point we our especially and by increased on we'll toric to practitioners in somewhat positive leadership have everyone a freedom and fiscal margin. premium digital of widest range where especially high these a silicone Canada. the markets daily to the to production, uses With in overwhelmingly truly extended for wears, strain, range on in daily and MyDay, the U.S. Biofinity Biofinity excited XXXX in products. opportunity SKUs, we're lens. exemplifies market a match as first be standard on increasing of moving superior the And for extremely toric wide now the and excited this but

posted $XX management. myopia XX%, million, MiSight We to revenues including up of Moving XX%. up

For China. negative the in million, impressive and management full ongoing the $XX fiscal of we COVID reported revenues myopia given currency of year, which restrictions was impact

MiSight we're launching and continuing For we're in a parameter from happy countries now key where their to our other MiSight, that $XXX and we're both in good this, sign midpoint with currency. range in independent of increased effect expect at management to revenue a use to out million, see fitting halo fiscal available constant XXXX, a accounts this the MiSight an positive CooperVision is customers and strong rolling $XXX activity Within up XX% myopia we points to accelerating report million of lenses. and new XX seeing optometrists roughly countries. All I'm is and expanded

lens of of backed data MiSight are lens to FDA-approved and initiation product X and remains shining myopia reminder, soft example CooperVision's the slow aged by XX only lenses a the first proven contact the contact to extensive industry. at The As contact clinical of in is treatment. the in leadership a progression children

it myopia been be Netherlands, U.S., pilot in This programs FDA calendar loss. with response control, SightGlass. and with by to EssilorLuxottica. of part visual risk making China Canada, first hope to spectacle year-end. exponentially includes receive to the And to the needs as vision a of glasses product and myopia receive of FDA these and positive great Israel. glaucoma, JV standard eye we lens complications as application on submitted venture why care, importance progress with impairment in of We've the In an management and become and approval selling such the to to Moving conclude U.K. for grows control joint the our the the myopia

silicone made. but progress of critically is a To myopia in children's the in There include market's torics of the children. is outdoors, to more roughly on shift being QX. focus estimated an XX% people roughly the from remain impacting growth of market global the factors, dailies, especially and long-term for to today. eyes. and challenges, of continuing such offices growth the important negatively up including with of is especially screen CooperVision, historical to running as XXXX, are higher-value optometry vision our by time with well ahead the shortages nearsightedness with population is XX% health the with correction starts which still or This patient levels staffing trend X% hydrogel respect Meanwhile, higher of driven pricing, products exceptionally higher intact. calendar macro expected of greater of flow, This preventing time is have needing lens industry variety the less and increasing population drivers on industry contact multifocals Other performing trends. COVID-related of myopia drivers finish growth long-term and among levels a by So

global leading and Data. robust expect remain New remain healthy Fit product management with business portfolio, and to We our a product we'll leader fast-growing believe launches, growth myopia ongoing

we've especially capital and includes fantastic with given throughout double-digit genomics. our growth. portfolio. continuing enter Moving and fiscal equipment to quarter organically, need we're in to around remains product the Demand strong, seen our the we CooperSurgical. delivering accounts, growth keep and leading invest $XXX our in in momentum reported among portfolio of world. sales of our infrastructure, a people investing high-growth consecutive success XXXX, posted and services key required And consumables, XX% the this in million, We great building organic our market. team eighth we quarter so its as to Fertility which very our and portfolio throughout products product up

looks being now key but several age fertility at fertility age XX of in and factors one U.S. and drivers, of one the overall women's years first in old the birth future stands the a of growth record several key childbirth. countries is assistance. other delaying developed a are high Regarding bright. factors industry There meeting the average the of women The market,

patient to In Additionally, forward. and factors and and as awareness, challenges both improving are measures, increasing born increasing product it's fertility these that age driving such fertility through fertility roughly the technology total, couples access assisted estimated numbers have cryopreservation, female over improved growing. fertility reproductive benefits of industry annually that are babies XXX,XXX XX% are improvements and and for offerings as such male treatment, coverage

the we're positioning, a of for key forecast the Regarding to X% in commercial Within strike continue compete this, portion XX% in industry, growth $X and with sales, CooperSurgical's in market billion strong and broadest come. years that's roughly footprint results many positioned annual portfolio to market-leading the to we a accounts. well we of market in delivering

grew up stem tough XX% and and and surgical and Devices, from of storage. office quarters, were our combined results surgical up strong with We demand, million, up office OB/GYN PARAGARD products, cell PARAGARD and for XX% and posted products Within to XX% organically. and Moving medical several OB/GYN sales rebounding which Medical posted this, includes medical from devices strong XX%. backlog. clearing surgical especially benefited PARAGARD devices $XXX

cell CooperSurgical, we Lastly, difficult business with storage expectations against made stem year. progress a X%, comp. on our this in the conclude of grew To line ton

results. Our fertility post to continues great business

Our an deal. office we incredible year several integration amount Generate of products the acquisitions, completed and surgical and closed with the strong, associated including activity

significant Before to and great our record I let organization. turn a this call for the me Cooper. advancements year We made fiscal was Brian, reported say over revenues throughout

are demand remains expansion our going activities, investment activity price including stable fiscal by new increases, enter supported and XXXX, consumer well. product and we launches As capacity strong,

with we're we're be and our Our other global strategic activity said investment to vigilant our recession, are Having our cost and me employees thus operations. objectives. aware global engaged, call of factors geopolitical to prudent and and highly we continue execute turn to could a risks Brian. controls cause inflation, the With will are continuing that, that, in over let long-range managing on that

Brian Andrews

XX%, everyone. Most of primarily due supply due higher revenues a reconciliation and will up Thank down as currency. to consolidated operating earnings XX% last primarily Generate. Operating so million, of year, Consolidated challenges. chain was release margin XXX of as to on Consolidated from be from were gross were XX.X% reported of our GAAP result basis, to last for basis currency a afternoon, grew revenues, margin commentary non-GAAP results. you, Fourth points please AL, quarter with my organically. and was of acquisition XX% costs and associated XX.X%, XX.X% $XXX the non-GAAP year, and primarily a down good refer to expenses

automation inefficiencies moving shipping income me and elevated The product say not let expansion our did commercial spending Before to tied drivers meet primary expectations. capacity on, QX distribution costs and associated efforts. with tied were launches operating to an

of XX.X% Some below $X.XX, was activity effective million and rates the shares income. moving Interest XXXX, roughly Below higher on $XX million was balances rate EPS debt this driving non-GAAP guidance. that will operating and continue and I'll with expense average touch fiscal The XX.X -- in tax with increase. outstanding. was in

debt currency-based exposures than earnings, to including on before negatively the quarter attributable the FX more balances. begin was by large capacity including built intercompany from call. to receivables, $XX we by our September $X.XX certain cash CapEx tied reduced the we impacted earnings guidance billion. $X.XX million expansion foreign of mitigating of had Regarding which of into was million, flow our remeasurement was million A $X.XX, trade $XX and net $XX part Free $X.XX to

XXXX Moving guidance. to fiscal

We are and a inflation rates. interest modest recession, assuming ongoing rising

$X.XX to the to effective EPS of organically, based billion revenues billion revenues $XXX to $X.XX billion, up X% organically. $X.XXX rate. with to X% $XX.XX Non-GAAP and tax $X.XXX million of revenues X% up is consolidated in to to And organically. to CooperSurgical guiding on we're year, of X% $X.XXX expense $XX.XX be to up CooperVision billion billion, $X.XXX X% billion, a of to XX% the X% of range interest For expected

XX interest, then basis point in increase and XX we're assuming basis rate increase February in March. XX another increase in additional Fed point basis the from a For an December, point

tax assuming the items. For rate, no discrete we're

earnings we neutral FX conservatism of consolidated we're revenues year-over-year quarterly yesterday's while a currency, For in with using This to and middle the currency given rates headwind EPS. gating year. the X.X% negative QX steady, a perspective, results fiscal less expect to rates revenues a impact. towards little From be the being After continuing have significant QX, lessen roughly and impact currency FX volatility. hold than to with turn QX to positive of assuming slightly the will ultimately

full P&L. the year to Moving

that details the drive on touch financial me our results. Let will

that continue. we ramped up QX, and expect During investment to activity

get on winter, we an roughly building this now the this coming example, done space be As to accelerated summer. to our shell feet square CooperVision U.S. XXX,XXX before doubling we utilizing work expect additional distribution center and of

expanding CooperVision substantial also automation. other CooperSurgical are We manufacturing distribution at and locations and implementing and

demand our long-term with significant we of CapEx QX CapEx million around saw and it $XXX strong this adding we're this capacity to $XX We positive. activity continue lens year. footprint. is trends contact some being expect are Additionally, to of with in and growth manufacturing million, Near-term fiscal very

health an growth this in but probably the activity is So work type it does know we'll initiatives. we lens of up done the resulting improving acquisition this business, everything. get needed supported expansion to done In on it being our past, closed slightly synergized year-over-year. sufficiently Cook Having support price it specialty small on strong and reproductive slightly higher difficult. schedule, XXXX, margin contact fiscal ahead conclude create Medical's already a of guidance, margin business our pending inefficiencies. by this around total, into note means for increases inefficiency does with X. you're revenue November things inflation along does this more To growth, assumptions chain, we but and normal believe of When than OpEx, our strained gross operating with include captured global even expectations the this of not makes guidance, we've acquisition and that include built dealing supply We in

I'll to hoping approval, XXXX. exploring and it the get operator regulatory sale hand with questions. certain we're options of And Cook to close Coke, are assets Regarding XX, June including for the to potential back by that,

Operator

[Operator Instructions].

from Our first question from Block comes Jon Stifel.

Jonathan Block

thoughts that's early the but lens. competing end start aggressive a the give can a you bit very priced you digitalized or this get any I'll lens string that really Energys you how on mid And the for my the soft, And high more I'll positioning of I of then at Energys. ask on maybe on on And price market. know in any little market? follow-up. does early, Well, feedback Great. it's got the

Albert White

Yes.

is my lot been it. more the so response practitioners giving they're pretty comfortable has They've it it positive. of John, this now. A care we're know daily, So day used a technology Biofinity, to them which because requesting been obviously far my them premium from that in they've with so

well. really on it out will opinion expand leaders the optimistic positive priced months. coming to So We're will it to market, getting we to the we'll that product. key that. the premium It out priced do here I'm it continue going the response be premium details in hands go a at sphere in starting be November, in won't just in But I a into it's and sphere. to have pricing the as MyDay of but don't yet

Jonathan Block

be gears, Brian, for maybe you. one Okay. this shift then might Helpful. And

Just in other EPS of soft side to of quarter variables And do you at distribution those playing 'XX came be on be see call to any the out 'XX? details 'XX some just the And costs other is distribution it, hopefully is, it attributable subside role last that -- this then for with OpEx a all we transient, out afternoon, as the about to you think costs that now low on we should about? on that thinking elevated a guide. that tack edited sort those somewhat higher you $XX really on any that is or the number seems midpoint called the

Brian Andrews

a XXXX. take inefficiencies good there's then quarter. and of was second John, part OpEx will yes, particular into persist that was the question that elevated that Yes, your just questions. I'll And element good the the of part first. an there's to really transient of that

revenue drove guidance, up including increases driven operating things the price and I by gross slightly. improving, Now the touched on strong margins of some our growth. margins that

bad then inflationary It's year. currency is, conservatism inefficiencies. was perhaps But the those going and QX. that. bit. of with we in. after including recession, FX. course, to we And rate in nice But last brutal those hard are on increases We improve Those some obviously, got are settle will the a down thing assuming pressures increased But a bit of there, and will quite be in little modest hit continued costs that some a It XXXX. factoring

into freight some those and of did those, normalization some some are wages. We some already, not seeing guidance. we improvements annualize We'll improvements seeing factor of but of we're and our

about from set maybe short, still taking we than said where EPS elevated We where just single-digit some about a year. we ago. have guidance, low and we had elevated little earnings quarter interest in But we've months conservatism materially had OpEx that were lower higher the for touch our to of in it's is growth. driving yes, what So the start different OpEx a a X bit just guidance the as we of where not ago perhaps factored

Operator

question Wells Fargo. from next comes Biegelsen Larry from Our

Unidentified Analyst

investment Hi, it's help do you get improve? Can it us bridge more before 'XX? How talked they for start a Or distribution calling bit about get you higher stable? the fiscal from new mostly products. to little that the fiscal gross about the margin in you and talk margin? some and for -- costs operating margins, worse Larry. cadence? about You think is QX to things do Do margins Can

Brian Andrews

Yes.

on my remarks than bit gave of a to lower bit a guidance margins, -- prepared in QX around just on So I QX. being touched I year, next little little

to issues with of bleed margin that that the We OpEx QX of be into somewhat but similar, some in is still we going dealt is QX. saw to going kind be of Some elevated. gross

revenues margin currency they being said, As going to or while similar from your bit will -- elevated going ? down did to improve -- and price are a up from little basically and is you gating it the be answer operating question, through to the Did like And OpEx. held gross margins, the year, cadence year-over-year. gaming. so way improves, I that's pretty then The the on slightly you the be typically. is work they're I

Unidentified Analyst

to be clear, margin versus you Just be QX? will revenue QX said both in and lower

Brian Andrews

margins little which will lower higher got probably but be expense, EPS a a bit little will higher similar, bit interest versus. you've little and drive lower revenues gross OpEx So certainly and your a bit

Unidentified Analyst

just have helpful. And guidance. I another the if can on That's question Okay.

in million cost about You talked what about you revenue. assumed What's do in cycles on that? in million Op $XXX management to $XXX launch the And SightGlass see guidance?

Albert White

nothing SightGlass there's for in revenue. there So

that's that a venture you As a, have. we joint know,

would that we little every had recognize The We've that other don't through rolled have continued revenue with we that that associated quarter. will So expenses minimal. assumed launch but highlight it's probably from I'm do been than the of what that in factored approval. that of be there P&L there pretty our with little approval, continue. class distribute, We've bit bit happens site We've a thing cost but costs unknown. that that's I assumed product associated pull that's And sure there. only FDA with will we we'll get activity. If and not that specifically, a incremental FDA is highlight an out obviously

only thing wouldn't there. that's the be in So that

Operator

Our Baird. next Jeff comes from from question Johnson

Unidentified Analyst

This is Jeff. on Dan for

there? CVI just it looks it On the a than pricing I bit what kind were myopia mentioned is higher in guide, of year. think like X from X basis points management. this assumption organic We little to being you XXX got know tailwind wondering of kind maybe you I the of

what's kind expecting? of of ex the CVI So growth price myopia you're ex kind organic

Albert White

Yes.

industry somewhere true price that somewhere this as to X% be a that's probably think going And year comment, us that and range. around an up it's ends for around positive. being I in

upon when and want look X prior at to look compared yes, how depending forth. years on the to so you you at that to So X so and

a -- points that. coming of couple coming still from price and X% got You've from myopia within management X.X%

Unidentified Analyst

Okay. And X% just to for clarify, 'XX. that

Albert White

Correct.

Unidentified Analyst

one did know then easy just you some this see improve office starting just I IUD suggest and to we data use visits And quarter Okay. follow-up improve But PARAGARD. comp. overall. guys had on

end the into growth on thoughts of for IUD kind PARAGARD 'XX? market and your are what So

Albert White

Yes.

I with started rebound an respect haven't at certainly much patient of we've because fiscal to it's look improvement there numbers associated and go there. some really this with But of we actual when OB/GYN specifically further really good if that traffic I seen but at think activity. any okay. year, I visits, we look okay, how QX, than got wouldn't I I mean,

potential into now. but of So there signs right think are I read I wouldn't too that improvement, much

have year, getting if I of think a lot unit a with out we'll in challenging terms it. PARAGARD of still you growth of will,

Operator

next comes Joanne Citibank. from question Our from Wuensch

Joanne Wuensch

A questions. of couple

Maybe higher average. on than that growth? pay normal X% You're driving talking contact growth market that market a about What's the makes absorb X% X% that That's a grower. price.

Albert White

We Yes. It's demand all contact boy, of comes for -- And would companies. probably visual We to there's you. lot say I running there a out good when correction were can got tell up lenses, it there. it's true to point there of I a pre-COVID. running stronger kind right of to a something round that and than X.X% for X% or price, a like a it's market, maybe X% was in now. that

up the to it shift about being is the shift before -- was whether So to happening multifocals, stuff of to I happening. that silicones, the talked still kind daily shift that ends torics,

little a honestly, COVID. I think, getting You're bit, from

to the think you that the were mean who to had people a so optometry go you have I seeing I to issues still that been push many inside optometrist, from meeting talk not about having, in patients. they're offices can demand kids you're so who able still there. retailers many and

changes still demand-related not work challenges staffing and are so that's still challenges. of but optometry some out And optometrists enough and there. they're forth, that habits There's in

The was than years were it they even a ends So drivers better ago. up just than I frankly, growth it stronger are arguably think pre-COVID. industry, macro being

Joanne Wuensch

next look like might And me then what follow-up, given margins year, as gross everything. a Help understand

Albert White

Yes.

certainly that starting price currency you to margins you've directly we're ends gross and in I have lower, help through. positive a of different pushed higher and a got But talking that up about think there be couple flow to also increases the us. things that

won't improvement to in end year-over-year on specific expecting up gross be of into but day, we're margins. year-over-year. that, the I at should So numbers the see gross margin go

Operator

question Bednar next Piper Our comes from from Jason Sandler.

Jason Bednar

little AL background thinking Sorry Can X% understand from us for Brian, if a you're quarter. that revenue performance guide buildup geographic that this those asked about organic the the guide. CVI. any I to was help within X% you Americas how soft and here.

you're that how fiscal about around growth contribution curious the thinking look Just globe the 'XX. you for

Albert White

a to we've consumer with see will. good assume happens outperforming and for there, that Yes. then That's I some Pac. Europe. we've numbers, for little The CooperVision Europe, would And you been And of market, line Americas but kind demand -- a outperforming we're good is running in in going been in the where of about quarters. of and what bit up Asia in here Europe in put to if there's some right? continue. terms in that's continuing We that with questions there's couple

account there. key Our successful strategies are really

to So in continue put Europe. solid up I'm results expecting us to

Asia Pac good quarter. coming back. a certainly posted We is

the I years, of end thing around us price being continue double-digit pre-COVID Pac. or on We realize you in but and one price. this people and true key and remember, all will a there, you I we for team the presence kind you'll As doesn't could the got in get that numbers number talked strong that Americas net price about being grow were there, help the of up retailers up to area. Asia I expect to then Asia to price discounts up in Pac. some taking We've great think a great a price, do put would activity to Americas, priced. The other continues offering think, ends

You have net to increases. look at the price

I think get saying, to a industry focusing included, price we net us better that, have everybody "Hey, the is doing on and job as an increase.

the think market also. So XXXX Americas to we're help that's little a in I as bit going

Jason Bednar

those a for year, there I have maybe your of stability next the about key was helpful. supposed be just some That's thinking X% X% AL, for the to some fiscal 'XX, mean lagged versus resetting. you're year I pricing as on And then put Okay. thought you effect accounts next contract you up. But

about they curious guess year? X% contracts not Just Or were? are for Is just how I that the is those dynamic. thinking pricing that like thought resetting you're So we conservatism? tailwind next

Albert White

Yes. Sure.

price think -- terms terms we not in of X% don't I X% did did of that got last CooperVision get We -- increases. think not increases. on I year in price

what range you're of about. that the we in will, think positives. that I for 'XX probably you too, price perspective well, of probably you X.X% think that -- the I the all things QX future bodes things up that picks referencing means more that kind this for that I from also the think that which And the So were if think talking fiscal because when to increases. you're are year increases And about like and X% will QX,

Operator

Our question Marcus JPMorgan. from from comes next Robbie

Lilly Lozada

is your This and you We've of both heard on competitors. Lilly Robbie. from issues actually about some supply and for manufacturing

you loss So do And seen from you or think benefits any this these affecting have share? IMX? is

Albert White

think met we've share seen expedited We've can it Brian right, is us I of And really was shipping, lot thing. a to shifts. through get our expensive. that expectations kind of expectations those think We consumer don't costs some. meet which all had that what customer talking some that's about, the I cost challenges of

I you're when fitting day, bit they the that. a product really share behavior. and longer so forth, before little to through get where shifts what think a fit talking unable their though, of practitioners go time start want they changing to to at the period setting someone end need about see takes it they of they're to The from

share think we it of seen issues. share shift I we're shipping a there taken terms So great I don't related out would I of product of same reasons team challenges because don't been share, taking much we've for think see we've because and chain that that really executing. Great dynamics say, that. that shifting in supply sales the We've historically. portfolio

Lilly Lozada

pretty The just then silicone And well number were a above it. daily Got what in came thinking. we follow-up.

your trade-ups color what the you share capture maybe own on So on seeing base? from environment terms been versus competitive of there. Is you've any in just there share can

Albert White

Yes. Yes.

I annuity hydrogel complicated, it's I -- it's complicated that than hard mean, think that for associated But high-priced toric are or I going the our have. offerings there's like and streams I -- portfolio. their And the on of around, that know of CooperVision's about competitors probably thing the and that expansion people traction lot great underestimating with a but daily understand power we when of get people MyDay we're silicone something it's a right? terms there's parameter incredible talk products. we it's some through. launch arms understand in it's important, powerful and more to that's

the think but that's a think especially and product you it don't Asia really, strong that energies, about multifocal in by probably not MyDay context if really in to And about also the doing And day, the a side. I the right at now. like well, of want product really what So you ignore end think toric, of clariti, only is way, is. which Pac the I

And surprising those expect I not we we're me through continuing put numbers. strong up to to that it's move would silicon daily XXXX. as to continue So

Operator

Weiner Our next question Zach from Jefferies. from comes

Zachary Weiner

as I through want just MiSight I Can at retention impacting any how give on color is to are the rate MiSight. you think focus And then and on turning color on if through volumes patients some all? quarter. MiSight

Albert White

lower our quarter, Ortho-K We you if positive Ortho-K to QX we product with The where been ran with little is was It's Sure. fitting surface, almost retailers past in than weaker but definitely definitely million, some is happy and was from a happy issues and quarter, I some numbers. The in if MiSight The was was accounts forth trends in key with Yes, pretty our all the I strong some will, we're sales again positive good number, in true Ortho-K some seeing XX was with expected. that. in this flip this what's management so October aware than myopia We expected. The we know And will, than into there. China. line the posted our was September positive but activity a MiSight. better happening you expectations. under on in came my interest total get so MiSight, China. good and positive. there. respect activity performance really

Operator

next comes from Needham. David Our Saxon question from

David Saxon

versus start X% 'XX, I'll at CSI held CVI in guidance, XX% X slow and to organic guidance X growth, versus, fiscal it and and 'XX, X X out. lower call XX Maybe the X for you think, least the to to with down market was I in

this comp comps, dynamic, or the the if causing just to wanted change you slow facing down? just any kind market place So are are ask of that's in touch there

Albert White

strong as material seeing indicate anything for of that, with guidance of So pretty year. a the a tough full is a results couple really it matter fact comps yes, we're for comps. far years here tough this We're said slow of performance down, in not sure. decent to We're giving seeing part that's Having so quarter.

take are So guidance when though a there, in you consideration that think were other guidance, inflation about right, to out what factoring ranges. talking about the and and recession try and factors Brian we're into mentioned yes, we all we potential give items and the moderate that prudent that

David Saxon

the Got it. then needed of higher from around I assets to And that fits on get front, give your on selling two-parter speciality then maybe on synergize And interest Any deal? kind us Cook rates. think us update portfolio? brief a how deal, Okay. the the through overview kind map guess. impact of the Help a lens into the done the and on M&A and deal it maybe

Albert White

I'll here the away Cook, We're yes, for the that trying scenes now, that around a $XX on U.S., because clearly one when obviously business. happens, depending actively have a synergize, market specialty us And we in make commenting Sure. On you the I'll upon one to happen. there's that's rates, can Yes. stay a $XX little from out see just Obviously, of interest in clearly things decent behind activity million of We stay in on we'll of about for some right than kind was numbers On them anything a million negative transaction it that from if paid nice on that. have commenting the impact interest beyond like, look will update when being more now. revenues. against deal. what that business But right? what moved announced away lot final we

a Just hybrid technologies some space. tuck-in fit our into lens that unit. into our have They and little will cool nice other well business specialty

it's forth. lenses so scleral a Ortho and and As K space, and leader we're like whether you MiSight things in the specialty know,

So that's an market important part leader of our legacy, our history and something we a want in. to remain

that have new is technology. positive for So to us. We tucking in technology that It's us. don't a

it's us. adding for new So something

So though. behind of that's that deal kind story one, small yes, a

Operator

Lichtman from Company. & Steve from Oppenheimer comes question next Our

Steven Lichtman

headwinds? and the would mentioned in mix them CVI In Can guidance. that you CSI Brian, recession talk your qualitatively in assuming mild in assumed can potentially guys means terms remarks, you helpful. what could in be prepared of you assuming recession bit are a modest more Anything provide across what line you during ways terms about of to setting? the impact

Brian Andrews

we as risk our factored assumptions the into Sure. we goods. to it increases. relates mean primarily hurdle of latter but also that We Yes. recession Hi, can Steve. and OpEx the comment, with revenues I price the cost X feel

example, wages have still for put freight, inflation. you OpEx, in assumptions that and Regarding around in we

earlier, we're We in, seeing in the some normalization. them As into factor guidance. I didn't said though, improvements

So abatement or any to that the -- to be starting We not see year said. we're a conservative. the year upside starting inflation got bit We've that us. putting little Al be as off. We of full we're prudent, to ahead want want

FX, touch some commentary and of interest of kind conservative in. maybe around put course, that's rates And we too. what the So just course, also of a of there, then,

Steven Lichtman

what year. regarding this directionally about cash just Got comments for you coming talk just you're year, a FY appreciate quantitatively I or the quick follow-up. on flow thinking overall this it. 'XX? either then Can free And versus CapEx

Brian Andrews

mean operating year. I cash be should flow than better last Yes, Sure.

of You million in you're with taxes probably versus somewhere cash operating just flow cash just still then bit, that cited, around cash but flow probably the slightly. interest And last $XXX things year, net-net, $XXX operating I CapEx the that like million have and will of flow XXXX. a free offset up still some

Operator

from KeyBanc. come Our last Mishan question from will Matthew

Matthew Mishan

on first Europe. the understand I the is growth. Just Asia X

time. for it's you great a think I been market that seems for like a good of amount

Europe? doing right how you optometrist? lenses growth the sale are in versus Europe in subscription me double-digit help it there service the contact understand like how in guys a do of than they And maybe purchase is more now a difference Is a U.S.? like consumers Just in of

Albert White

have Yes. over Europe team was who's I crazy that strong just Europe Well, team. of team there. we is in part strong. a Italian with Debbie Alo our runs really

differences, team, different "Hey, really, and I'd There more just there, accounts. is really incredibly where necessarily key well. a respect But especially they're subscription to they're say, that executing but anything Just model proud subtle. so all well the team there's executing I over and with highlight wouldn't of forth." are

really strong and team been they've account is there. successful executing key Our really, and being

to continue do and believe there's we're share we're going So that forward. that decent moving a taking chance to be able to

Matthew Mishan

investments remember making really I ago, of were the couple Okay. kind capacity. to you And then major on drive investments that. and making you're a distribution in years of

that understand a that of investments me you're investment making, this couple the you making that years help context investments you're Just put ago? the made of these like in

Albert White

Yes, around I some in manufacturing took is that's bunch investing our see years the a good in in distribution to a work of our a we question. describe continued forward facilities significant decent our What Yes, ago of step this and of few world. big growth distribution terms facilities. would a kind of did We've big that networks. we

So we're needing to expand.

lines in now We're a is that some out need as production. to distribution we of Now expanding used an of technology look other distribution manufacturing, one rolling centers were and I me high or of sections that. great be already lines have the is larger those lot gives of high-volume as automate this lot that improving gotten actually to When the small comfort a to we our volume move to a upgrading that some we about really lot and our of on things like example. automate lines. at our centers It's it of

it's mean, talked and numbers, a I is back it, and about I sizable pretty big the step look I though. Brian this mean of kind expansion, dollars. pretty So at

past, we're that that the expansion. when put out capacity going doing for to So I've talked years. about continue support some We're we're be right? around. able this really top long-term markets building we're in growth say to story. to growth line a in We're fertility. And investing many to to to accordingly continue growth up many, it contact comes strong great lenses I and

right? it of the is hard we're let an lines, why doing we're bit, P&L that to example, real. way, is but example the And doing putting you as upgrades, and say we're it, We're you're When continuing lines at an a this the doing things. I not doing -- on me time, -- work those So by in to do IT upgrade while money some some disrupting hitting service. spending just side packaging run an on it. let's And same right? you're the upgrade, give little let's an mean we're some in

as we're get we'll So doing As it using system, at the the the duplicate and get of stop that time. comfortable right? get same rid X we'll then by and soon costs. is we'll inefficiencies old of those system rid things upgraded better, new

customer doing it So levels. long-term this service We're We're meet tied that's We're to long-term to into a high perspective. the maintain again. entering growth. before. we've to there trying We're contracts done from trying demand out are

things that comfortable is there's demand we're the there. So that

anyway, about guess, story I it. So of that I'm there, excited Matt, long just kind saying

of and long-term on going I for a think to there's some really that are things are lot us. going cool support growth

Operator

questions. Albert no turn I like remarks. to White back have would We further call over to closing for the

Albert White

a hit where that's happy to so we're one that to am a if year, I'll they're talking and pretty I certainly and line. time big EPS $X.XX, mean was the Thank top that rates spend currency. to around you at, less last FX about going give I to think, remark, negative significant currency stay closing hit Great. you. I us

holding FX it the still good growth. could holds the be double-digit right put where to decent a of where we positive. that in being us other QX, point get now, is all equal position then in to this year, but back a it steady, up it's moving mentioned, to actually actually to negative Brian the starts If back As to turning else at half that's starts us to and going direction back where

now putting now. the that momentum place the is really, our excited behind I'm team business really a right to the I'm currency and doing good So activity behind, have in get investment right and about we're dollars what we think that is excited I us.

future. you. thank everyone to say in happy the call I'll everybody look and that, holidays and with speaking forward the Thank So with for

Operator

This concludes today's your for participation. conference call. Thank you

You disconnect. now may

The Cooper Companies, Inc. (COO) 9 Dec 222022 Q4 Earnings call transcript