COO - Earnings call 4 2023 | The Cooper Companies, Inc.

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Operator

Thank you for standing by, and welcome to the Q4 2023 Cooper Companies Earnings Conference Call. I would now like to welcome Kim Duncan VP, Investor Relations and Risk Management to begin the call.

Kim, over to you.

Kim Duncan

Awesome. you. Thank welcome Conference Fourth Call. and Year and Cooper Earnings XXXX to afternoon, Quarter Companies Full Good

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

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

financial stock we I'd and like demand. income, conference expected statements, forward-looking contains EPS, and begin, to to operating this accretion pending initiatives, and and Before our strategic including rate and tax guidance, revenue growth other recent trends and call conditions launches regulatory split, and remind you a market revenue, related product that operational acquisition,

and are to uncertainties. on cause set release. actual available described that and statements filings, differ forth website and depend our Form forward-looking subject XX-K of could data under Form Events caption described those from forward-looking coopercos.com. at filings, statements to and in our Cooper's SEC the are that company which assumptions, are of statements imprecise future may our all And are including the materially actions results earnings on methods risks Forward-looking XX-Q or or today's be in in incorrect

under following reconciliations please Investor you under ir@cooperco.com. the Should to reminder, you Also, the consider as our this call our to quarterly is a the we under non-GAAP is website non-GAAP questions the as encourage will Relations results any e-mail a as provided information. GAAP supplement refer and our information on release, financial call, additional provide as well We on to have GAAP provided our of in earnings which section available materials.

Al call And over opening for I'll remarks. now the his turn to

Albert White

year-end Kim, and call. conference and fiscal Cooper you, quarter XXXX welcome, Thank fourth Companies to everyone,

XXth posting almost quarter positive a consecutive our by fiscal launching lot gaining billion, XXXX tremendous year with our CooperSurgical growth. strategic fertility revenues and record Truly focus and executing driving driven market CooperVision a posting was maintaining culture. finished organic double-digit we on by really objectives, on all-time quarter fantastic as services note for of business We've closed consecutive and Cooper we growth Cooper year its XXth a of its organic share, of including posting innovative with $X.X revenues fantastic This products the phenomenal quarterly of excitement now on teams. long-range double-digit and entered with accomplishments and our profitability record

organically, share in XX%. of numbers. per the up hydrogel million, CooperSurgical's up $XXX strength our was Consolidated XX% $X.XX, posted Moving organically. daily revenues earnings of million, CooperVision's organically $XXX $XXX were to and by quarter million, led were growth posted a our growth solid fertility X% CooperVision profits was revenues with very X% and CooperSurgical non-GAAP revenues quarterly year-over-year. business. portfolio, Margins by strong and improved, silicone led up in of up

our innovative For grew CooperVision, and flexibility and The having key all accounts. success XX%, XX%, in products, percentages diversified. organic growth and X% market-leading growth with X strong with was an grew EMEA basis, all grew Asia revenue reporting Americas regions Pac and on

Avaira our Within grew lenses categories, non-single-use and monthly silicone modalities, Within and daily grew grew multifocals torics grew other grew X-week Vitality sphere X%. silicone grew XX%, and single-use XX%, XX%, sphere Biofinity lens X%. X% hydrogel and hydrogel

outperform product passed our including outstanding. on daily patient, multifocal rate it just pace very launch, this a MyDay. This high-growth silicone our expectations pairs continue results We the with for of the portfolio, the a shows doctor with high XX% growth fit and starting and satisfaction products multifocal to fitting and success of X-year easy momentum. makes remains the has MyDay win in anniversary or of system and in with design paired X an unique hydrogel combination in levels, resulted and less. an The the we to advanced Turning it

shared From I that. up, as how market, to the don't amazed in these and I a as and on and the the And I multifocal personal how as fantastic certainly multifocals, be lenses soon lenses and take out I biased, are continue and at time. sales I and I insert I may last growth these perspective, easy my remove vision quarter, until now best are MyDay distance put wake near to them I are. lenses bed supports believe but be our wear truly

across the and strong, our rollout MyDay following expansion toric, and product's mirrors the industry-leading remains market-leading to toric Europe. is due which design parameter of range. America SKU to our demand North Biofinity's Moving very design, success This

product In that our innovative eye most most continues designed care XXXX lenses digital U.S. say a practitioners patients recently fantastic care boost expectations. with recent and lifestyle. and our for recognition an to accomplishment MyDay team. innovative MyDay voted exceeding Energys, our impress was eye its to I'm today's And The are comfort, Energys and of specifically launch awesome practitioners, great sales by technology for digital deliver proud the

soon success products, these in as MyDay capacity rolling of out we the additional markets the certainly to around With world allows. forward look them as

segment, comfort, driver a which spheres, a to we're lens torics initial of with a key and continues wearers. positioning to the The multifocals growth for have price to offers daily excellent clariti of clariti great be continuing handling family full new have be price point. success MyDay while led silicone and And choice in our at

coming by strong excited remains announce highly successful I'm launching be several our by Biofinity our And the we'll dailies, to extremely to Biofinity family Avaira nice toric multifocal new year torics. quarter markets torics in of a products Outside demand led also of response to had led healthy, multifocals. and in for demand.

to in $XX China. the EMEA, XX% growth with myopia Pac due by Americas another to while revenues challenges for MiSight of posted in MiSight, This We up was up and Asia Moving powered management. million, was flat quarter excellent XX%.

fiscal growth has region the enter Americas showing excellent Pac hurdled EMEA growth trends. orders with past in the stocking we're and already the XXXX, returning we continuing as improving trends expecting and Asia is and positive As to

Additionally, rates, up and see over products. very being we're nice effect to adds world a our high key All halo this and retention in children other around accounts momentum growing XXX,XXX on to MiSight continuing momentum wearing the strong.

differentiator eye cataracts, retinal detachment along the myopia, to reduce only macular with as a clinical health K of proactive myopia remains first FDA-approved of extensive progression care reducing year-over-year. lens degeneration. and myopia quarter, with the a control, had such management associated in community eye rebound it's becomes the as children, by within standard growing and MiSight help problems This the for myopia contact data. crucial care is of backed our and nice XX% Ortho of Meanwhile, risk long-term franchise the

share lens roughly CooperVision finish X% QX, taking CooperVision, grew contact calendar To on XX%. market in with growing the

our the this, up When many kids of have is focus We you macro higher-value expect remain on the population growth time expect the Within correction. will of healthy, years pricing, combine remain XXXX, digital to XX% X% our and shift coming trend launches, Fit myopia by to product to indoors It's strength growing this growth needing greater expect portfolio, myopia to driven Data. for New a leader estimated solid management by fast-growing more X% in ongoing and products that ongoing vision toric from the the products, this robust innovation, XX% leading with market premium our other silicone we people of product long-term screens multifocal and by today. of industry. with the use hydrogel global roughly year, increasing business more factors. and supported spending among related the we This higher dailies, the year

consecutive CooperSurgical. growth. and revenues services, consumables, This of we share this, quarter up our by which sales market-leading X% up was around Moving portfolio, products including throughout organically, world of reproductive posted our testing. We $XXX record of to organic double-digit our the genetic capital saw and million, XX% driven $XXX and Within fertility gains million, included equipment organically. XXth

geographic in R&D. accounts key expansion, and We continued also investing

entering new of and extensive portfolio training expanding geographies, 'XX great excellence, sites, well centers team, fastest-growing existing to companies most one world. and we're We're fertility and developing diverse of fiscal donor and new as the and launching our delivering given continue momentum. through providing positioned opening in products, our in We're global the innovative new success,

and male fertility developed with technology assistance and benefits age fertility starting other include improving patient awareness, and the in For in old several for improvements drivers Other moving XX growth median fertility remain and broader years to roughly Age the market, increasing the to and factor challenges. growth women and coverage fertility treatment, contributing address delaying the macro first a access need U.S. the key to birth women's higher. both increasing is within of is countries female trends intact, childbirth.

the X Health Organization X/X of of is a future. continue infertility are of data combination X in underlying affected by lot is given globally World that of or is cause and to at women, men an is so point issue infertility a that two X/X this the And do their unknown, in The X/X lives. some that people impacts highlights people will the in and

of very acquisition X% and Cook our this growing from surgical. challenging we of several highly products office medical Medical. to up closed a with the $XXX million, against posted Within organically of sales devices Moving part recently We business, X% comp. strategic

results flat be forward success the decline sales. several this acquired X% future unit look us, higher on Given will delivery the device team strength deal and for a products solid space, having in offset pricing of labor in and of we're great I cell these to and and growth our was medical PARAGARD these Stem where posted reporting reside, of products. as storage the

a in born To CooperSurgical making say We're we being take and that's special able lives, is makes part CooperSurgical, really pride business what products. minute conclude to the people's for world, a difference that baby somewhere of this us. great our around every using

XXXX. fiscal to Moving

revenue will guidance, Let rest and the cover P&L. the Brian of me provide comments on

We limiter for to post new demand, to this guiding revenue wearer growth expect for The MyDay. and to CooperVision organic growth challenges year. are to from main the is X% strong results capacity X% especially

We around expect for the X% resulting of revenues in in constraints these quarter. QX, growth pressure capacity fiscal to

we move We capacity actively the high though online, are through year. growth report double-digit as and single-digit additional to to expect bringing

year Fertility, in we're stem and guiding volumes. ] which growth organic low to year and medical declining includes storage in growth of strength flat X% slightly due to [ of down another revenue cell to full CooperSurgical, PARAGARD to X% For mid-single-digit devices in to

entered with without possible is our great dedication the this To incredible conclude, we've let fiscal was work me for of of momentum. year a this Cooper, hard none great and say XXXX and employees. But

for team incredible Cooper So a year. global another thank to big you the entire

turn I'll the to now And Brian. call over

Brian Andrews

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

expenses margin Consolidated operating saw Operating XX.X%, from currency. to consolidated revenues grew Consolidated For of favorable XX.X% better by prior the from as XX% and were leverage and XX.X% we $XXX expenses. revenues leverage activity. operational last fourth gross up operating with gross at CooperVision X% by million, organically. margins driven up quarter, improving XX.X%, margin improved the from and CooperSurgical, strong was performance to X% both along as up led year, X%, from our investment up reported

was million Net at average Below $XX.X rate was operating outstanding. tax for FX respect $X.XX QX was with XX.X%. and than cash $XX worse roughly to $X.XX, effective guidance than million positive XX.X was guidance. slightly Free million decreased With shares of the $X.XX with it million. income, to was the billion. quarter, debt expense $X.XX EPS flow higher Non-GAAP $XXX CapEx interest was our which year-over-year in expected

and basis. full up we For income this, up revenues XXXX, Within $XX.XX. on constant a billion, currency record grew or organically of non-GAAP EPS X% the XX% $X.X consolidated of operating year reported XX%

a more To color gross operating with leveraging focus first, margins provide continuing This stronger we emphasis our on additional an leveraged execution and XXXX. fiscal on P&L on our in as delivering had expenses. solid results, fourth delivering quarter

in with up significant is majority business. This associated but integration the and our a implementing impairment of move great did quarter. ramping infrastructure and And we deliver the commercial of an CooperVision which completed part result of and care efficiency our into core intangible from discontinuation finished is asset a us perspective, puts adjustments of specialty projects. success integration capacity our to amount this lastly, a unit quarter. noncash including the large improvement lens This a moving non-GAAP certain in excellent it a this of continuous products, charge we position Second, activity forward,

closing be the The price to acquisition XX, was XXXX, acquired year. assets assets mention $XX X% annual X that November me of installments. with the X. at $XXX September currency closed $XX $XXX guidance, remaining as we expect on select to of paid million generated million of in in growth constant Before Medical trailing to million million and XX-month let X% Cook moving purchase paid in $XXX million and The approximately this revenue we

charges Excluding per yield-related transaction to to and share $X.XX XXXX. and in non-GAAP accretive earnings onetime and accretive approximately operating is by be amortization, gross fiscal the expected to margins non-GAAP

and up to $X.X X% X% revenues revenues X% to guidance, billion fiscal organically organically. billion consolidated XXXX to to X% CooperSurgical of X% $X.XX billion billion, revenues organically to billion up guiding Moving $X.XX to $X.XX $X.XX CooperVision billion, we're of with X% up of to $X.XX to

is EPS interest $XXX the the from by which range This includes rate assumes no our assets interest Fed Medical the in fiscal be year. of of the from debt expected changes million Cook and to during $XX. Non-GAAP $XX.XX to expense roughly acquired

expecting still a stock as tax such effective any rate, excluding we're tax, exercises. option XX% items, discrete For roughly

Cook For a lastly, of currency corresponds XX% roughly roughly XX% to results currency, excluding X% earnings. And current growth Cook XX% to the roughly with range X% or in we're EPS using FX and accretion. XX% rates which to OI revenues year-over-year to to roughly constant acquisition the headwind

XXXX. release, approved X-for-X has a accessible up, our ownership semiannual many XX, desire And and investors. to and with employees is date an years as in more we our our the made stock stop minimis Board in our de dividend. to effective to stock split the our February earnings in wrap make paying adjust to strength This announced of price response decision of to To lastly,

was hand and it With year to to that, leverage me let I'll deliver conclude XXXX. a operator Cooper, And record fiscal and growth by for solid positioned XXXX well for fiscal saying in now back questions. we're the

Operator

Sandler. Instructions] the from comes Bednar line Our with [Operator first Jason of question Piper

Jason Bednar

on Congrats first close connect on CVI the of discussion I to year. really growth on wanted the nice pricing. start revenue and guidance

the You're think calling. market, gains guiding Al I least that's here, how you're and points to at more share growth Brian, X like above

price We're historically I that's below peers. think month seeing you or beginning increase of gains hearing the been at you've above at this price though. peers, implemented a

more So the growth you're anticipating in we when this started you're I to you where challenges similar the those guidance we fiscal think pricing is aggressive mentioned? to due to about have versus your CVI in growth moderate imply with you and but capacity your getting guess a 'XX, growth does past, performance little volume bit market than

first but maybe these current for fiscal have packing confirm then the be -- quarter? in can a few visibility headwind And just aren't that you again, sorry capacity here, going to a challenges beyond you

Albert White

We're Jason, I we first X%. put we'll going good roughly be mentioned up the still quarter a somewhere Sure. to about here. couple growth of in think things.

that more We lot than but faster are capacity we constrained demand could that on capacity, had and that. a if of wearer grow we

new growth have we quarters. to in. lines that report bringing double-digit additional the in able progress or coming digits year through single lines we'll We'll even upper be some on continue So to so

X% -- price. the think about on the the of X%. to the the maybe year, lower to look We guidance pricing X% about our at Last that. of 'XX, market look to in kind market, I'll context at we of was I if end right? probably When X%, it I give were

be that's would if in the the this it. higher X% again looked X%. at will to I market that, probably be how year, pricing of end think probably We'll and at I you define

the at where So I normal. in our a our I is respect earlier least We'll what of much than pricing pricing I to coming do of we in market between months. and ultimately wouldn't the into our to see some delta going read increase here dramatic price too be. some for think the price competitors increases with year our mean did

Jason Bednar

a I Al. bigger take with to And a -- more in pricing one investors. Okay. back going to high-class get picture from we with come the it question, margin it like most What's this operating question It's question in line the other challenges, But get is and lot business? if a the maybe want to to get. I peers Yes, expansion definitely the be I common out zoom the may capacity sounds past. to problem

I become moderate X line investments? seeing and guess into top you know CVI a fertility. that been now really sustain you're you of challenge. plan business. I multiyear across back commit we're XX% XX% growth But the good can I a think good margin that a those more time has growth into that FX I years some guess willing for will if expansion like there to margin take could us when to to range

Albert White

this my that's I income constant faster be year on Yes. basis, would grew response that XX% revenues. we a guess currency operating than

consolidated the just Brian that XX% our operating And Our currency constant at this growth XX%. income to midpoint year X%. is guidance mentioned is

success focused margins So operating improving again we're and that's on and leverage driving there. our

We're 'XX. see to So coming years. belief 'XX, that you'll in it it my is doing the we did continue anticipating in and in

Operator

with Wells comes Our next Fargo. line Larry from question the of Biegelsen

Larry Biegelsen

constraints capacity 'XX Al, at same wanted the on guiding the about guidance fiscal of only as changed And are? is, more Is any capacity? call, at think, 'XX. that the thing where on I the the The I conservatively just understand the to less was it of year. the start exactly those talked fiscal last color start you for

Albert White

tied Yes. The capacity MyDay. constraints to are

we MyDay growth wearers growth is of have range. wide SKU A especially, torics, a faster continued in which MyDay at that coming lot and have were we anticipating. to from than win in clip So a wearer

some that's on So put pressure us.

we're driven capacity wearer of kind I has the changes. those So again, of would success of some hey, say, terms having, that growth in

Now investing knew We've in we that it. stuff. been We CapEx. saw

You can see numbers. our that in CapEx

manufacturing additional online. have capacity We coming

more a a a good kind we're just very where shape. a not bit running of We're quarter, quarter. double-digit issue maybe So little have into in but strong of short-term here we'll

Larry Biegelsen

anything is the Is last you on where exactly And aggressive bit more it the guidance to year call reason same that QX alluded there versus this start the is the being a little else? to year?

Albert White

capacity, the If MyDay be we more range had guidance higher. would

Larry Biegelsen

then, and the operating assumptions talk cadence? the Brian, for the for for not gross the margin you year I in didn't guidance the And thought hear about can but sales cadence, And I for I the myopia 'XX. fiscal number Okay. commentary full and heard management margin.

Brian Andrews

Yes. will pretty getting margin constant are last similar from next as-reported but are basis. obviously be currencies gross it operating operating basis year, both OpEx. an gross little on better for Larry, bit a operating leverage year. be currency negative, negative respect a margins than up again, should With last currencies and But year. to margins, to from We're

our respect or... that with do we -- you I'm to to our take management management want myopia to sorry, myopia respect range, Al, -- With

Albert White

like growth Sure. guidance year. to of range. else. into a SiHys not we going forth, so anything but I our don't I'm Yes, guidance range details all and do not for just rates to mean get going we're we'll products, we're going and this give to to give do similar daily or myopia continue management to guidance not for mean I other a

you than to and greater to usual the like to I pre-COVID, quotes, and X% X% market X%. want to X% at certainly mention One at to and of Larry, was usual X% kind that mean X% pre-COVID, guidance, will, traditional X% running I if our at of will, other put thing, market guidance. you our if kind the is just X% us guidance, in

I guiding stronger to pre-COVID. and be at clear stronger we us So performance that want to from to are than to we a guide just overall market used least

Operator

Jeff with line comes Our from next question the of Baird. Johnson

Jeffrey Johnson

those of if letter sure a some We capacity other on not and the to of did just Japan. issues. hear markets as I'm back some constraints. going in supply supply went just it in well out Al,

is going to Asia region, the should thinking about one. Pac impacted most be So that be we geographically in number X%

seen have warehousing strong last things fuel side, think And I of lens rebound top that with companies, number two, as on right, that, a and over costs. a in of on lot you guys some move distribution pop the of years couple to lot some dealt line, included, side, up, added the which helping the dailies contact is this we've

to of Can in are to you good. like year, there's things, You demand going any having this assurances some kind don't which put that hit all feel give to extra lines us from that away anything be you are kind gets being earnings some that these of year? takes the of a cost uncovered adds are guided that some to midyear sudden this of or for

Albert White

questions. great Yes,

answer second one me Let that first.

are You right.

amount more We job. chain. done going our of over team, work our global take have my hat you off chain, did to supply they've years. a will, an that or amazing if distribution We lot really I'm to expansion that through of example logistics which behind I'll of team. I happy vast done volume couple significant through is is Henrietta nice And a a last that activity of the And the Great us. Rochester, talked people. group the is a of outside West That They're New job. getting center I They've distribution done. majority York. our great use about, our say

forth. with with Liege team so of So the that risk updates activity our is lower. in thing, software did fantastic Same and Europe associated significantly job kind a

a the forth. we're to labeling, confidence in spot So team in got And think I good when distribution I've there. our so lot it a comes distribution, really packaging, our and of

lot a say that to happy work of behind us. is So

out. plays to of perspective any don't else it's On we'll how tip or anything my point kind the from supply or anyone. want competitive region particular hat regional to constraints, a a From to see perspective, I that again, MyDay-related.

a want that we're out. we'll good in see I just commentary obviously, I'll again, give plays QX. be how on to it the expecting QX still certainly, solid But So clear, quarter.

Jeffrey Johnson

against up I you've No, double-digit comp. that. come get Yes.

And some just guidance, you there. pin if currencies pound, the have bit bit could on Brian, guidance. euro, I of guys make been good sensitivity those just are really few then, what down I understand pretty the you the in little guess, a two. EPS on sure has to Obviously, I want I a all is the the of to big the range over The just the have a kind quite yen. strengthened last weeks. or tight here in pretty last yen a So week

current So couple points. yen when didn't assuming you morning you're update the off say X this was I'm using guidance as rates, guys your you a or will X.X, strengthen

So just but have are XXX currency, yen, you I yen, the ridiculous sensitivity the it's single is on at the XXX on XXX? know the to there. just

So $XX. the to to that we're like assumptions on kind of where $XX.XX I'd starting know

Brian Andrews

Jeff, what did We in today's particular the is yen. use right. yes, rates, say not I but moves, currency we factor you're guess roughly current I'll absolutely in

currency So that initiating year. to say always well. would exercise guidance, of as we We like with respect we're with the did level and a I certain prudence,

Operator

the line Our from next with Jon comes of Block question Stifel.

Jonathan Block

unlike frame can changed? about a constraint demand been -- Al, on consistent the was part because want the the that you always if behind Because it X your of XX-week I then you're very acute And of to Or front I But of the case, capacity, think X-, be ahead very demand recently it to what time you to growth over with demand the you the you curve from the caused I really an wouldn't really how transparent stick competitors. it you just months? always challenges for And in next maybe to staying it? think in rate, have the had that's rectify are to X portfolio? confidence seemingly in -- a and it. do or second. industry it's of the able that's suddenly terms one reconcile in that X-, some in particular spike of mentioned so

Albert White

can That's MyDay a we not months product the XX a because Remember, it demand marketplace. spike, the about Jon. you're lines, now, little lines Yes. much been so still we to demand. a talking robotics, of Great time lot line when that that longer consistently forth. of somewhere to the so the taking our in strong question, the systems it's time line of area has order as as the still speak, from It's the us camera is into producing that all and sell bit manufacturing

increase but on getting say, kind about demand, on X here new sometimes be products, in the that those last over little would which So seen of we've you're an right? ago. lines, talking months, takes thing, what You So had if up X, order we production to X.X we ordered a that it that, right lines years for catch while, now in you're right? can

plan of of you of of get more get you And think winning little these than But did the team and situations. an wearers together. out, time anticipated, in extended really terms a out in you period when nice I So to job that continue that yourself in we that planning tie advance. it's can kind a hard to

we could on. see I where are on. lines We what lines get But coming is see coming production, know comfortable we the the

into Our and great production, lines and doing a job. up at they're team insanely strong is getting ramped these manufacturing

all and demand, forth, we're have schedules, activity to have we able see the we So the and we all so manage the it.

Jonathan Block

regarding acute the those was great EPS, coming And but cadence violent earlier we quarter? fiscal Okay. the of most color. to That some out year? just are last that sorry 'XX think I'm fiscal over call to missed throughout this Brian, as anything to I if shift, you. on less in due FX know, being leverage in And XQ to maybe, about don't constraints I particularly

Brian Andrews

with probably biggest the think nothing today, I would phasing at of currency I something gain point particular yes, a -- said. and of out. normal there's in is point currency the other say out the hitting year. through would seasonality But if I'd quarters. we'll us to -- really I in as that to kind but look if Al I of wouldn't QX versus We're impact year, have -- kind good that Jon, a is, I from outside be And there's that, going I guess start going maybe off

Operator

Our of Joanne next line comes Citi. from with Wuensch question the

Unknown Analyst

for is This Anthony on Joanne. actually

one customers Just capacity you potential any in -- challenges Are losing do new us. from MyDay? related you to think these you're

Albert White

definitely are Could wearers? any about customers. wearers. to question going we're That's not There's we're sure. continuing permanently -- we lose Are gain even to doing to Yes. Do the for I I'm we We're we a going gaining think X% losing X% guidance more not the No, at new year And about for X%, that. damn no dramatic market. be them? we're because have talking product. rolling QX. and of in change. into It's to about talking the we're giving

not proportion, is of here But we're this continue there's winning this a to this rest -- are wearers this blow We're quarter going year. let's a to and little a revenue of large the from perspective. QX, to thing in clip. win win short-term like normally right? at wearers So Like going them out we

Operator

question next Bank from of Our comes of with America. Craig Bijou line the

Craig Bijou

the the there let sense I a the for that you on Or fall year, over get the I line? benefits obviously, if follow-up plan of the extent of to wanted to To guys fiscal that how potential weakens to reinvestment start course wanted with some been is of the just to bottom there? either guess year, a FX. I volatile. it's dollar And

Brian Andrews

currency certainly, great if against continue. through trend yes, us weaken, yes, I would because to to to certainly that getting the were been line. year love moving going lot let we're see after year. bottom the does question Craig, it this after question. fall But to and year really We've a dollar currency this been has

Albert White

want Just -- because recent the trend [indiscernible]. you

Brian Andrews

The recent trend. right. That's exactly

Craig Bijou

maybe then for And Understood. Yes. Al. you,

expect that thinking update or Just you've maybe data expectations timing? any on FDA? what's and or any SightGlass? on the any Just What's I the even front SightGlass the the timing from or that heard you mean communications on the

Albert White

Yes. have, to but about don't on give any positive really next be that have momentum. now. unfortunately, right say that do world. mean, continues on work. I guess, no, you right There we I the to I'd around I in We're excited no to progress updates I'm it, SightGlass. and continuing the selling We're updates markets call maybe but right now product nothing now, good

Operator

question of Marcus line Our comes from JPMorgan. next with Robbie the

Robert Marcus

Great. Two for me.

in flow. on you like on year. or minus First, million free It $XXX the plus came cash looks

time I to last million. you guided think that $XXX this year,

the should generation about 'XX? we flow And cash how drove shortfall what think So in in 'XX? free

Brian Andrews

CapEx we of we We Obviously, cash landed right yes, year million actually at free $XXX came a Rob, kind $XXX $XXX pretty the been We million guiding mark. that in CapEx. of year. flow. in large ended so had at had we at million, around

that had the paid so were of offsets the we cash fee flow, in Cook taxes XXXX. We XXXX, FX, that interest, headwinds also in free termination some

a cash put to generation. do But free probably really probably about and us. flow in taxes over elevated So going that kind improve headwind similar certainly, a we I 'XX. as tied if be levels to We look $XXX for flow that that saw interest, $XX XXXX, probably at of million creating it's more are headwinds again free XXXX. some CapEx, I XXXX in damper on excess still cash FX, have expect will million of of in in

Robert Marcus

more Great. And here. of a strategic Maybe math. question apologies on my

few double-digit number of for reasons, the past line currency. organic the bottom yet it not or to we're top had translate a whether it's just line seeing margin operating down growth, You've years,

So I return something a or hedging it's how And reported any do else. you commitment leverage help you reported to a you know about to there of are giving forward basis? growth? EPS the think could do growth moving with to the do us necessity how But things on don't think double-digit EPS about your if consistency.

Albert White

Sure. Yes.

about right? growth income question comes with currency. gave FX, One seen asked operating move talking and things. we've it this in the as couple we nicely constant in are we back as When Craig year I we to about Brian, to year, it our talked I guidance favor. think a I'll there of last go our mean is,

the As way. some but Jeff to said, through And moves currency Brian If we're business in some not to P&L. I'll the continue currency is have great our of which that current guidance, our moving flow in to that incorporated in favor. of reiterate going -- said, manage the what favor, is to currency going the it's that's

up moved We get side that. with have us of And years where they a them currency to last through If and the of have we'll currency some to and pose I'd and lot I favor, flow this that mean see really post quarter. great was as quarter, in in opposite some the currency strong worked the I deserve strong love through will XX% while P&L, EPS our quarters. move against investors, several us. think moves favor stuck more our we've

would hopefully, And get crossed, delivering plan this what business we growth. we that like to I you and run tell expense. on and that, we that fingers currency, And that's drive is So generating add leverage reducing some down cash that. be then us maybe top some on paying positive interest one currency helps flow, of would guess constant debt, I other drive

Operator

line the comes with Oppenheimer. Our Steven next Lichtman question of from

Steven Lichtman

near point, months. for you think moderates? here -- the you the your term you've as Al, year-over-year in the maybe same over that about the XX industry level X% of we What points increases the saw at is X as industry levels. year-over-year sustainability for X.X confidence increases inflation above I X% to historical price and price mentioned last expected is said

Albert White

mean year other I probably years little some early our Yes. terms this price of a compared to increases. in we're

here So But I've in mean some constraints I we'll of the have talked what other about we little capacity. people do. bit see a

similar We have other We chain don't some competitors the supply who have have of challenges. challenges.

working have Some been of them through.

geographic in trade-ups, But core day, it's in multifocals, growth is number at reasons, nicely. growth of in end the growing a growing growth the different the of wearers, lens And expansion. contact for industry torics,

and are you're of lenses, to with takes moved of of of are all through And as that to is that of contact oligopoly growth. manufacturing kind manage logistics to keep the where up of time -- this ramp environment remember, an global have and to a that's struggling all to lot for you us revenues we've with it capacity things do up and demand. the lenses, demand XX% close ourselves, seeing to and J&J creating One this that's for because a Alcon lot contact happening happy get lines new

So are you that's demand a Anytime is associated long demand. out an any in of able pricing way there. challenges going of and capacity-related I have saying Companies with you that demand those would have to to environment I have and pressures believe then that you take for normally you have the inflationary have challenges, issues foreseeable future, strong industry some also the very strong pricing. to contact offset that potentially lens add are where

So number of I happen to a here see believe in higher level trend of a to years us. you're at pricing going for front

Steven Lichtman

rate follow-up here. that doesn't, contemplate based Does your year And Pillar 'XX fiscal Got tax the it. or that just the doesn't. it on should FY thinking a Brian, about And it Al. we over term? Thanks how for X on if medium be

Brian Andrews

[ be expectations It's expect contemplate Steve, yes, in are our to Pillar restate, X. that guidance, and XX% -- ]. we our incorporated does just I'll around incorporated ETR pre-discretes

Operator

Our of David Saxon comes with Needham. next from the line question

David Saxon

Great. Maybe one on CVI, one on CSI.

I of covering just inning on peers portion What MiSight. of Aetna wanted they And that are of terms to For CooperVision, and in are it actually reimburse? do we cost ask the MiSight like coverage? what in, sort Kaiser,

Albert White

the that. don't if in game. one first know early there's the It's in out I inning even We're on We're probably very in -- that.

that very, on just in getting industry Aetna so to through Kaiser in the very forth, that. is So and it coverage terms process. of early that has insurance started reimbursement and optometrists But coverage. some

significant because want that very get to in are with upside of game. we potential that front I very some there's not associated very, do So But in that. early

David Saxon

I'll they flat quarter. to question guess, been kind PARAGARD. just, this down, past mean then I are I ask how reimbursing? just my obviously on especially of Okay. second volumes And much have And

wanted long so, just Or over point drive can pricing to Is term? drive updated PARAGARD pricing guess to of growth that kind ability your on kind to get away? driven at you the what thoughts growth to that go do I through of going So there volumes? if is be recovery in does product. anything primarily by And

Albert White

the plans depending or is. XX%. MiSight. high, mean high XX gets as and what upon the coverage Yes, it as vary amounts sure. And I it's for some who have high as how as fairly covered Yes, -- people of

it's I a process I of But defined how coverage how lot by half saying of caveat the to be XX% want of the would So very reimbursed. think it's just that again, it's and in coverage. early that

So a work lot of there.

On maybe areas. around to access birth there, are is year. PARAGARD, it out control guiding easier options control pills There's down yes, as other access to birth flat that other be to to an challenge example we're a The volume. or

that do people take a IUD and market going do be the pressured I that kind offsets other price We is continue as to it. think of to from space, in volume perspective.

year, know further to to as at But declining forecast at looking think want I IUDs for volume. look this I least going to be out, much you I we're don't for -- too at if and flat but

right the So that's we with respect that just live world now to in IUDs.

Operator

of Our BNP next from with Navann comes line Paribas. question Ty the

Navann Ty Dietschi

will your after lenses maternal can be the allocation driven will the gains contact health about And ask priorities and I well? acquisition? And So also capital XXXX share that CooperSurgical be in please innovation? as by

Albert White

Yes.

We'll continue on I allocation, down to capital So have a paying focus our heavier is say paying right frankly, on debt. we but on now. down debt do we'll would focus, the do, things

and innovation Energys, MyDay we about that there A like that's talked a exciting lenses. there, share at continuing will to yes, well, anticipate products gains, is look because doing contact of lot share product I really out from well. are doing which If example, some an I really cool, take as come innovative

of the side the innovation And that it, doing to on call then of tied stuff the we've been on toric some side. I'd some like and multifocal

we'll I the good think So another within Vision have year space.

continuing ongoing faith them, to them. a share quarter. I we'll in just fantastic we'll in fertility. we'll the within And share moving world within absolutely an I CooperSurgical, just all posted see And there, job, And doing tremendous invest have I also behind think behind think and fertility. team to might invest gains we're forward. take certainly within continue the Great them

Operator

from the Petrone of Anthony with comes line Mizuho. question final Our

Anthony Petrone

on Vision, one Maybe one on Surgical.

Or the recap any a MiSight, from attach seeing high? maybe noticeable just adopters? early you're side, to back patient there the Are rate still is Vision on going drop-offs? what On

they And MiSight? then you on adopters writing the think for when prescriptions the early end, prescribers, more of prescriber are

landscape, M&A there of from we are the areas of attractive the we assume area. quickly issues when that kind And on CSI? are that antitrust, would health just be just there was potentially think an Surgical, to so women's then wouldn't in IVF, What really

Albert White

debt. November X. we forth looking them. -- at and so tuck-in going Again, continue we'll deal down yes, find though, done look to we is CSI, reiterate, at a we to can us would for out be closed fantastic think if paying that For We've are that some I acquisitions turn to I

that we'll we'd are So smaller that. stuff focus on maybe Otherwise, If there. evaluate device eyes out down our keep or paying sense, tuck-ins on some that open we'll along medical debt. some comes makes something

at remain an our retention We that I high. rates that. app tracks all very use MiSight, look If

we're XX% our all rate. running on are somewhere So of an still retention app, and patients around that

for We fitting are seeing activity right exciting within seeing key kind around increasing fitting activity in is We're also, of us world. increasing now. the accounts which --

are It our to business So the kind the growth we off we're the interesting even that will of there are in within good had the on and QX. business, of We that going a there. now QX fits terms We the of right strength sequential anticipating trends out have normally the have seeing. see MiSight decline. momentum that's whether that good number be right good of I'm a given bat. that a

The Cooper Companies, Inc. (COO) 7 Dec 232023 Q4 Earnings call transcript