COO - Earnings call 1 2024 | The Cooper Companies, Inc.

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Operator

Good afternoon. At this time, I would like to welcome everyone to the Q1 2024 Cooper Companies Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to Kim Duncan, VP of Investor Relations and Risk Management. Please go ahead.

Kim Duncan

to First welcome Conference XXXX and Call. afternoon, Cooper Quarter Companies Earnings Good

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

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

expectations, statements, initiatives, and I'd operating income, EPS, and like begin, that other we and product revenues, guidance remind you trends operational this launches rate, including FX strategic conference regulatory conditions Before and to call market financial and contains and forward-looking and tax demand.

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

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

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

Albert White

nicely world double-digit revenues all-time business our CooperVision consecutive the started Cooper CooperSurgical year, solid its Call. Quarter an quarterly record with posting on off Great. of organic around and growth. fertility achieved revenues note, outstanding growing XXth million. start year quarterly Thank We're to posting a the Companies quarter Fiscal XXXX First Kim, of Conference you, welcome, and to this record $XXX everyone,

very is progressing strong healthy. with earnings were demand capacity momentum and expansion our Our excellent remaining well and

numbers of Consolidated silicone revenues were all the daily of on million, in strength posted our portfolio. to X% CooperSurgical reporting by revenues an And revenues of great quarterly $XXX fertility percentages we profits led Moving hydrogel and business. in up $XXX that $XXX up CooperVision X%, million, per year-over-year. million, organic basis. a by led posted $X.XX, earnings were week. quarter remembering share another X-for-X improved, up with X%, Margins non-GAAP just our split solid last stock completed and

and Pac, flexibility Americas XX%, success X%. the product with in clariti, reported daily portfolios, CooperVision, modalities, key lenses, innovative our For MyDay grew and silicone All EMEA and Asia and hydrogel grew X XX%, our our regions market-leading X%, our for demand, and growth Biofinity accounts. Within is shortly. is and silicone where monthly grew this see that cover Vitality improving, hydrogel MyDay, lenses, Avaira we'll to especially higher and outsized in continuing reflected our We're X%. guidance X-week capacity revenue

an easy to being be of Turning is with feedback is We're own. to in X MyDay combination advanced demand fitting MyDay. my seeing momentum pairs with very fit system The multifocal, patient our of with And multifocal design, XX% an unique growth in in truly or patients outstanding, strong Starting less. continues fantastic. products. including paired resulting

the these or is market and that. wear they're long hours, doing our eyes home, vision I my multifocals crisp anything in I'm screen and demand strong at growth know, you comfortable looking these I'm out are for Whether a the of feel certainly many and outstanding my great. As lenses driving and best else, supports saying amazing. eating

availability driven expansion rollout tremendous across been our and success, we increasing forward also parameter is extremely The capacity of MyDay performing look be widest a and Europe to our daily to to Biofinity's the by Moving lens America range toric. North is toric improves. far This and which well. market. has toric in industry-leading continues design, market-leading by as range, design the SKU mirrors which Demand the our for product

Energys the to MyDay generate day portfolio, U.S. X wearers delivers on it. screens its approaching sphere is MyDay more per It's Boost anniversary spend continuing optics for love and in today's is market X-year great digital people innovative our average, lifestyle, hours designed where, on In technology and results. than

done our those a also customers I'm now forward. moving keeping be more success check that constraints results. expanding new is report allowing To and on supplying on existing happy our team posting premium is great wrap MyDay while easing expectations phenomenal geographic launches sphere to Meanwhile, in up MyDay, our us active capacity expansion. job product of and has some to

dailies, had Moving their led by balancing to we're led worth which making torics positioning levels patients remains about care torics. with that. multifocals, demand quarter practitioners Biofinity new of ease multifocal, primary silicone lens presbyopia to Outside is torics With The of do we're it nicely eye experiencing price wearers. differing for and of excited and be hydrogel markets to launching strong, continuing clariti. by Biofinity nice full many a of for market and We'll lens astigmatism. soon, more toric family a existing Avaira have choice of our growing expanding new as Clariti complex lens a and for availability in continue also be its very highlighting so this vision well. comfort, spheres, needs multifocals. It's led of handling

SightGlass, a with reduce myopia momentum K across powered where EMEA continuing of revenues We're Worldwide, of to contact results. and it's proactive backed up the process, management in differentiator community weakness first clinical critical myopia designation. launching lenses within heard Breakthrough high obtaining half children. Outside rates and the a MiSight And declined have halo granted as of only to is SightGlass excited quicker. MiSight digital and see also of partner, all excellent easier and become the progression Spectacles about data the by record fitting and This Moving of this second due XXXX. we're closely our XX% for of accounts, from the We're XX%. Ortho FDA posted retention Device recently MiSight, standard FDA-approved myopia China. to key to that nice in you effect. another and regions JV to care the eye up care continue FDA with management. extensive remains our real-world posted quarterly help may XX%, in the with programs of in control EssilorLuxottica sales. in we making it lens new tools the hopes on working by streamline approval in for This and update, we'll strength was myopia $XX We growth particular million, quarter MiSight,

pilot of Finally, to ] Illinois College of provide Pharmacy the College to College Optometry, program all the as children. England [ Sciences, care Generation we've Sight Massachusetts care launched in underserved children, to look collaboration New we a U.S. schools, in myopia the with X Optometry called expand to of top the myopia Health optometry and and

students local into pediatric their MiSight. leaders. myopia helps professional program eye This It public clinical to systems while real-world the awareness school free of engages they capabilities optometry increasing also drive and and develop free by as generation get exams providing next experience of treatment

the with XXXX, in we're grew management finish CooperVision that calendar leader kids XX%. on proud our CooperVision, lens growing this taking the X% programs contact communities. To of space, a certainly in are in share like myopia market a difference with As making

global pricing, products, focus increasing We to will premium to When many industry. Within XX% of product today. expect XXXX, people for strength roughly fit have remain this, that macro we myopia the multifocal long-term another strong supported data. leader ongoing our estimated more with robust hydrogel and products we to years from product year, XX% population growth the XXXX combine It's trend and the solid launches, the dailies, of ongoing on needing be correction. leading management by in and by year myopia a this with the the toric business fast-growing shift you expect new growth and portfolio, higher-value silicone vision innovation, up higher expect

artificial of labs. fertility to revenues equipment that products expanding outstanding cycle of quarterly market-leading best testing. CooperSurgical position to primary samples. geographically excellence, million, errors to genetic transfer adopter forefront we We're track services X% the was new now our also digital with and unmatched. patients Moving opening remains new our advancing and for testing. we're sites, of the future, for centers Witness focus intelligence is and genetic believe advanced was accelerating witness approach $XXX driven enhances our of cloud-based innovative and a leadership a million, clinics to This solutions further consecutive further reproductive template-directed identify and donor capital the innovation. We early which to recent of IQ, of reduce the organically. success investing quarter launch the up during XX%, organic launch amplification DNA in This at and our remain our activity, to amplification, platform efficiencies embryo Fertility fertility-based most IVF biopsy posted up the improve and an benefits providing our in fertility of of an and within double-digit consumables, and XXth system the includes were And extensive embryos sales CooperSurgical. We delivering investing training team $XXX by record growth. on

accurate Delivering better patient it's this we're anomalies help to and to to innovations is advancement This embryo process, drive better in type XXXX the the major and DNA of outcomes. commitment identifies work. manner. technology types in faster, enhancement As our an a of since testing space, existing this a more these genetic will leader pre-implementation continue and this why is genetic first amplification

greater trends rates women global improve increasing delaying supporting broadly to including the For speaking, benefits and market, improving that childbirth, intact, growth coverage, the success access long-term technology treatment. patient significant remain awareness, fertility advancements

globally by at The their affected highlights in X lives. will World that Health people point be some in Organization X infertility

impacts do an and issue of people So this to so a continue lot the that in future. will is

will is to of advancement to fertility people, patients advocate basis. and in As we many of this, human always the incredibly for and support increased accessibility incredibly rights for treatment important Access a part and will and clinics. to committed global so stand remain the on continue Cooper of industry reproductive fertility

up sales Cook X% Within business, to that medical that and last organically grew Office cell PARAGARD, products medical X%. we our labor posted X% XX%. our $XXX the million, device of delivery we devices in up portfolio, and reported and X%, acquired storage we growing stem Surgical, including with November Moving strength up

minimally We manipulator strength capital our portfolio. which as products, our also in surgery innovative and include such reported market-leading disposables invasive Ally gynecological Uterine

CooperSurgical outperformed we say CooperSurgical, take increase. To our stem using We're execution difference great in a around born a quarter minute, somewhere had in of part conclude that business expectations big able making price us. is products. around with world, outstanding PARAGARD solid pride makes a every and the to Our for and that's this a baby what cell people's being lives, a mid-single-digit special business

over turning performance, to areas important Before social to Brian, advancing let within responsibility call our sustainability, business also that me operational other the environmental efforts well. around our strong are in say and corporate our addition

employees the So dedication to our thank to the and XX,XXX-plus as around work I'll turn their you our they for Brian. hard call drive over now world success. And

Brian Andrews

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

by from revenues XX.X% For CooperVision Consolidated CooperSurgical. X% $XXX and million, the gains organically. consolidated up X% gross up driven at up as first reported was margin and last price year, both and quarter, XX.X%, efficiency were

with expected average Non-GAAP million was option quarter. $X.XX cash EPS negative FX X%, improvement operating XX% XX.X% from margin up the SG&A to year-over-year and shares outstanding. The CapEx to as XX% investment of of $X.XX, flow margin $XX.X Consolidated was leveraging $XXX continued roughly effective the rate impact up lower we to tax million. million, XX.X% Free leverage. Below with prior the income, improved from improving revenues than stock due expenses gross was led operating interest was Operating expense $X by SG&A for XX.X%, at was grew activity. XXX exercises. and million

As continues such both remain results, return exceptional CooperVision excellent as We continue. Cook start due projects. with debt expansion to in closing our the as with prior to and activities summarize an expect to free cash posted flow value. we're capacity we expanding this long-term progress fiscal year. CooperSurgical calls, be discussed this on to November. To $X.X and was the this impacted increased due acquisition operational we capacity Medical strong combined confident -- closing QX, Net and to focused geographically, billion execution, high to on and will significant drive increasing investment shareholder the

Moving X% future to lower fiscal to full in of performance revenues and incorporating XXXX results better interest expense. up consolidated billion, organically. year guidance. revenues X% our We're QXB operational to increasing earnings and This slightly by [ billion expectations for $X.X $X.XX ],

results X% to to For and $X.XX an in CooperVision, driven we guidance to $X.X improving expect capacity. This by to translates increase demand revenue strong healthy our X%, to to billion be which billion. equates organic

the our increasing interest an assumes during or CooperSurgical, changes fertility This expect in in to our to up product roughly to of XX% year-over-year we organic $X.XX in currency. solid to expense, our surgical fiscal performance includes office the million an to $X.XX to interest For category. continuing no translates EPS to by guidance to billion XX% along of $X.XX, strength non-GAAP increase $XXX of remainder Fed expected which with to year. range X%, X% guidance X% $X.XX This our billion. We're equates up and rate revenue guidance in XX% constant which

expecting we're incorporating and of full XX.X%, assuming year QX tax effective tax, items. roughly a rate additional For discrete by no

For operator initial X% We're that, And back unchanged. and essentially to annual continued is earnings. To questions. the Thus, reflected guidance. And revenues fiscal production impact investment full growth. efforts excellent advancing currency, are had QX strong, still that's impact we the our it prior a well. to to our QX to to are negative and to and rates and roughly QX our momentum the to a is business and in up, our for negative is wrap hand leveraging Demand the guidance. X% similar year an with trending updated I'll investing drive activity, very

Operator

[Operator line first comes of from of with America. Instructions] question Your the Craig Bijou Bank

Craig Bijou

But comments, start where Obviously, hear volume -- with to daily and are the transition how I'd lens bit of the of I your capitalize supply your And pretty -- growth the maybe the and market. AL, I that? with about heard you little a strong. still on love guess just just on kind So pricing market. overall on maybe just some to the backdrop -- trends. of can you guys contact

Albert White

I'll that. about Absolutely, think I Yes. as comments, cover Several it. we guess, Sure.

of now, is right and contact the show down. slowing market correct, You're doesn't lens strong indications it any

And to those transition the we, industry, pretty the dailies, dailies. So at driving we're and I to does shape. When pricing really good drivers. the back points are in that's and hot you -- I transition go as an look are one biggest trends mean, the to volume are that it market. mean of the

the that that's QX. pricing in As dailies pricing. continues overall saw from perspective, price market monthly that's of to growth it many, and the to us. From And continuing many and to a I to positive front just happen modalities, has increases We driving away years, think, continuing shift through see the the in X-week you're marketplace. of

it, that wearers seeing at you as it in terms number we I think as where increase. you're world wearers, think is now. Volume are around see consistently. when continue price right wearers does about trends, modest frankly to we The increases is of given you kind of if market the of increasing a the move pace going to forward take

So growth, that you transition and pricing then of the big a of have to component but kind underlying that being it. dailies

torics other want I there thing and is that to the in growth multifocals. The mention

to it. report market, torics But products seeing in continue they're higher-priced world. see because really Those going the and You're lot multifocals. underpenetrated that doing you're throughout because of growth a that they're as numbers seeing our grow we are well, obviously you are in -- a to and

in about roll hitting And what's lot off kind and supports team. than a of so a that daily I when lot perspective, year. with of the start even spot multifocals, we this hats now strong supply in that made torics to for there. From market to So -- we're growth daily future when talk were My were dailies a multifocals. progress. you that's the better we a We marketplace talking torics into more the out of growth potential we have much

the a quarter. CooperVision, and last fantastic tremendous manufacturing over progress they've We have some made team within

able better and much able a in base to launch and position be support new we're products, existing our So to products also be expansion. to customer geographic

Craig Bijou

up Obviously, I strong had follow IVF around digits. again, could if the just fertility And fertility. lot it. guys pretty growth headlines obviously, environment. you there's on of Got double And a

And some that pointing benefits getting companies calling or pushed. out may be

guess But growth? very and I for I think fertility the strong reason to continue the sounds you double-digit to So that just you, environment still ask do wanted like the to trends. environment, any overall benefit is can't it

Albert White

getting is headlines. fertility right, a lot of You're

there. in it's of thing of the like Now were kind support patients my there in all continue if the going court as frustration horse, that's fertility out won't Alabama about fertility clinics a player, we get because big so. I we my you what's we'll But all side to on high the and and obviously, U.S.-based a do and -- largely like, to will,

anywhere So there some the out U.S. in more world. market else than the that's is around commentary there

to are I in a years for underlying we'll fertility the really support do for on So so continue going look number end years, too just to and double-digit post doing, are when that because much I that quarter-to-quarter. fertility believe. global we're many be of to I markets But at growth put only day, the the I of going think how market And growth too characteristics front of The and would see much to we continue at strong. strong how weight market we're the us. of

Operator

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

Larry Biegelsen

then and one on to my and on with I AL CSI. Brian, quarter echo I'll here. the margins start congratulations wanted actually

do phasing? from and the gross It margin upside based and margins guidance the margin could we were in on implied gross nicely see I So tell. for operating seems fiscal QX. Brian, we what and the can the what's about like margin XXXX How up think the to in operating

Brian Andrews

Larry, thank you.

largely OI, goods, the and similar EPS on last the and FX of commentary we're we to pretty to provided story revenues Our pretty piece, some to year. -- the gross Outside us . similar holding of cost is and which is frankly, quarter. last still negative margins

bit as-reported it around the year that mix XX%. implied will somewhere perspective. Operating ended to bit, year. the our currency gross work little where So taken margin but expect I'd growth XX% last a as product we'll land of you on little in to we've a a margin, up an It bounce depend constant on we will neighborhood basis OI from through

So we're a effectively increasing I our we margins where constant were had would quarter. expect basis. to bit But more operating quite margin an we as-reported on where touch operating from be up on a year-over-year, a yes, basis currency guided -- last

gating a so from point worst our is of little in telling of particular there. the been I bit a a out we've wouldn't is And bit last perspective, really quarter, which FX, FX us it's that impact negative QX, to in a going people anything quarter, more as outside fact and

Larry Biegelsen

That's I helpful. question on CSI. a Craig's follow-up And had on

organically, X% guiding grew X% QX X%. to you're to in You

why you and growth Are talk slow? IVF? PARAGARD please? that, does are So slowdown competition you Or to assuming some new assuming about in

Albert White

with X%, factors When are strong fertility fertility to put say, up to flat forward. it comes the maybe kind QX. mean believe And entrants in good We'll X% basis, of does to continue to PARAGARD to on competitive the "Hey, and with ultimate continue underlying are still you correct, we're think to quarterly in that's to I fertility on a basis", market. guide some a by growth into even right? people I moving the I way, I the be year-over-year due going right? say, underlying we're demand growth see I of strong. Yes. would that still QX. quarter of volume would how have be roughly that going PARAGARD a to to strength going drive -- And

you'll that get upside Now that. maybe some and from happen, doesn't

probably I a conservatism there's to meet of And that. enough. X% up to bit X% little argue X% could X% one certainly think you beat But we're quarter, hopefully, that number. if able to is it in So that not from to taking after

Operator

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

Jeffrey Johnson

exactly that back as does for So at AL, but XXX so acceleration for maybe Larry basis over in the quarter a an question, CVI, you're similar the asked just on right came right year. where you first points imply This up the half. it guided taking CSI, X%,

the you the So where about XQ expected, number quarter, double quarter, digits being year? you of back quarters, to in confidence the in after that to gives the CVI CVI X, potentially next the rest this in this early what to first few getting year one? And last talked number the you of capacity-constrained hitting year I over the do double-digit quarters the with think raise with growth you still X have potentially confidence faster this

Albert White

almost question, strong Jeff. in round to was did Yes. I Great QX, we ourselves It X%. X%. Yes. a got we X%. Well, mean to up

good ourselves a think double QX start the get solid I year we'll do So back digit. off. to to

chance to As of we've a in good fact, matter double digit right think here away a to got get QX. I

look So going move did how have comfortable going, that improvements how the where of X% we up to we we QX, it taking little our see bit flexibility, today, when year. at we the quarter to I how we'll in we in is capacity sit that's feel February to that closed I how out, goes yes, to X% us as X% more allow a And through kind X%.

Jeffrey Johnson

clarifying question the gross on Brian, then, you a commentary And could ask if margin enough. made. I Fair

first up basis was points it, year-over-year XXX were the quarter. You -- what XXX in

gross even You're that. XX was and points in just year-over-year nicely currency decent quarter, year-over-year because simply it to something is up the negative? else flattish XXX the in plus so kind like points in there QX second would year-over-year going balance or that swing somewhere basis a of back now year. to But for basis the quarter, out the Is from implies perfectly each X down year? the it's doesn't of and third first down next a the that amount maybe get currency? just around in in it Is like talking that margin looks gate of quarters there to purely the year-over-year It

Brian Andrews

thanks for a Jeff, the gross and Outside the perspective. question. of I an year. that, Yes. impactful I operating as we about part anything wasn't QX first from are Yes, latter worse would profit in wouldn't quarter really currency in Certainly, the or point say QX kind of the as of profit to expected. particular. landed where QX

of But little Some I say, would in through similar a bit pretty of basis, we're general, the year. timing. it's gross expecting we on as-reported work an as margins

Operator

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

Joanne Wuensch

where Nice there am Mechanically, CooperVision. the consolidated is quarter. going you've some way of revenue part that, reporting a to MiSight? you're see I for reason And of the that now

Albert White

So behind consolidated where Yes. that. think reason ultimately we dynamics. see look was the report And just we MiSight at competitive a And better I in representation we'll that it. you'll of business, sphere, how because really combined it's is with the

Joanne Wuensch

JV second steps sort income do to has you follow-up that remind to What up please of And to And the can on the of how bringing SightGlass. my now are your question statement? shows with us market?

Albert White

Yes, sure.

SightGlass, most It's line, below a we as can invest JV now, shows income. in as right you operating imagine the loss, So to it. continue up below the for of

we'll will that's that FDA. detail report children, than that are way well, the really obviously be our So to P&L. now the we among the it moving goes if really profit, to just below with that some line. The There work all other strong some have through and into too will is continue a to without is, data. forward And run right younger process spots, we getting where clinical much especially turn

work requirements get the in that year. half around feedback hard product including they're that meet that we're continue looking that the for selling FDA approval getting In China, to multiple the for FDA, world, of we're and meantime, to the product, approval some in it. So markets in for on great the here and with next back

Operator

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

Anthony Petrone

just Maybe lens here. bit year. Congrats about on again Brian, on one this and the capacity earlier a spoke quarter this we little

on getting to being clarify, much Just supply not follow-up is because the Like Cooper on constrained? And actually there? demand bit you much management. how how where you maybe are And out myopia build-out? left is are then like a

is the Just with opportunity bundle recap products of TAM a for those combined MiSight. the just kind maybe of when overall the a combined. we of reset what on of opportunity X think SightGlass high-level market

Albert White

On to Sure. capacity, continue lens that be demand whether are moving going wearer strong moving think new is or existing yes, torics multifocals. because get to into to It's going themselves I a Good questions. wearer and in, strong. and dailies to an continuing wearers you're it's

it, today of demand, not that but have to demand and believe going us. you're us years of position in So lot a I of and in capacity years that that perspective and all demand. that of years lot years we're demand. and a that underlying for from The a years front allowing is meet to

a post I to I here numbers. about been have to QX, to to, where As earlier, be going position able we're in We're spot but return enough certainly in double-digit growth believe, I strong to able it. here in may asking be mentioned put where we're right? us good going Jeff a think even

think of So front for on, I now. years that's of how that continuing that I'd a in in frankly, number us with position it's strong have, us. to answer And capacity to come a going put right to years

when of at look boy, it bit I But myopia develop. what's It's crazy, We a right excellent. talking get well. be markets. MiSight Europe TAM, marketplace the a certainly care". we're those difficult along taking really really way needs to "Hey, that's It's a is little faster. in going management exciting. good myopia its I month, obviously a the just thought out to are is in somewhere about pushing dollars. would coming momentum that's now to a We're the glasses, the see at some billions and every there move going it's If look of almost doing other and MiSight seeing a some very management into while marketplace this to in making It's standard some products there to and out and that's marketplace large. fantastic one the of saying, with we become little and is market, SightGlass society but feedback in And

don't think to should. I most be optometrists to standard And it children. to crazy that out U.K. does. needs recent the It's We treat that and care. was we the one. coming of need degree we to the proactively saying do

I'm that And a to say glasses frankly, right but FDA-approved the great, the making product one to industry you only is is which have with progress lot need MiSight we happy that. come with And and of there. now, along

opportunity in front of a us. So big still

Operator

Our of question Bednar comes Jason Sandler. the line Piper next with from

Jason Bednar

AL, start, your I think perspective. I about heard new fit in from past like wanted to we've maybe a calls, position,

love really Just the dailies you're what [ right sight ], or on hear in torics, out now. daily well eyes multifocals, data punching where just seeing to would there you're pretty

in insight Just context share your the market side, the where any stands new of on categories. maybe on again, in fit those current your share

Albert White

Yes.

while it's that say only caveat sign way our here, us. world. is in But fit comfortable good would share our really a running and that hard front of fit asterisk, and is general sometimes right? As to And is current that put through data few market a which for a a continuing what in that would is. get little answer, certainly And is sign, will, good say if for the on of a continuing way. that been GSK The I'm to excess around get other data our run our sources. I or you market I data to we're that's that share, that all we've We

Jason Bednar

any But where strategy maybe one. also think from? categories maybe as say pricing Any is latest maybe the I key are or there in can and next one on over As that think gains, and revenue outsized you about those all account And there, trending category? color more that several we just strategy then look out come wins how quarters? share how to then and geographies. accelerated update mentioned growth or I across add you growth just of where we separate you'd the Okay. going a is there mean, follow-up the -- revenue

Albert White

Sure.

to growth I to torics where we think well and you're that to as you've we're meaning going seen, do going multifocals. going is continue what see in forward look be to here,

categories We position, have well. those and do in right? position We leadership a great really

numbers I strong think going to see continue to you're there.

numbers, place side from perspective we're is the that daily hydrogel in doing see you'll fit silicone other a well strong things. The of

Now some include multifocals, the that side. on would but torics and sphere also

we strength. have where that's So

the at there's areas. moving. weakness look of in strength have you of certainly direction some that market our kind fit in is legacy our -- is those If and right, stuff, data hydrogels But we that the and

progress, goes it going their franchises. standardize growing, that started MiSight and we well accounts started to product did we've to a the starting they're figure They all creating out of to management activity optometrists and has how activity new need with been I they're it, to a around that's of to sell going accounts, how MiSight. the key doing yes, myopia franchise, that, or is highlighted price the infrastructure, account myopia throughout out about key roll It's some accounts. seeing did, we're right? work this within will, little quarter. in consistent just So a why what, sign. Within we we're in where The you XX% That's well which talk control solid, if excited kind progression that. within the But on independent is key over great XX%, we What our That done, more key I'm being growth to progress script, right? get throughout interested with it and

see to XX%, to a at brands growth that. you away like of underlying XX%, you're just with kind think we something kind on good from XX% whereas have now. side, them a continue of driven a I that of consistent Jason, so That's basis. key right, the XX%, And through going plugging right accounts, relationship those being lot know, by my in store and strength forth

that expanding relationship include to MiSight. So

Operator

the line next Stanley. Patrick question Our of comes with Morgan Wood from

Patrick Andrew Wood

On kind probably like the toric just is a curious, X/X side, the population. of I'm astigmatism it's of like

the guys you have have, it lenses, underpenetrated that from category that data good you Rx perspective, sense of i.e. the on totality? how do from an a are like of curious, just where we I'm is kind So

Albert White

it's underpenetrated. Yes, way

has penetrated definitely I have astigmatism just really U.S. fitting right my MyDay very the improve. years, and most see the you're well. fantastic to stable, market in it's And solidly would U.S. the have quality it toric it. starting easier the It much off improved top it's of of to be like an is to your the fit over market, underpenetrated. And who product. toric of the and the U.S., underpenetrated. So to product. the has the of head, far patients a and tell way way, go is would by continued outside underpenetrated I you -- those don't you, it's numbers a product the but It's fits products a patients by still When point,

out just And So dig market there's care you looking of comes who every can I I single mean significantly correction. I to growth grow There's correct visual -- lens eye into of I should can great toric underpenetrated. patient in the top continues XX-plus as it that's tell of you as a practitioners off tell come my details. question. world. head, to that's optimal it's going significant years fit around for the the the to the continue for the

Patrick Andrew Wood

in but bigger there. CVI, sense. rolling as like Was Europe dynamics I you astigmatic on makes some then that -- I that maybe as things, very about side curious number were so in side, know And well. there on big anything the was it. color of particular get well, that you a a -- I'm contracts that of within can and gave some have I over the Europe, Certainly

Albert White

Yes. number Europe. strong Yes, good in

continue have to going we're them. think I to

team there. fantastic a just have We

it, for just number and of have team a Our commercial is they killing years.

rollout there, combine think of there now going in I better going currently in some forth. you have of to some team the ourselves strength So with to over of sell. Yes, key there. our position and having get a new to we're we that accounts expand products, so right when right strengths we're We're products the products put the

think going with what to capacity you're As see European happier our to continue is team I improves, product availability success. doing. I couldn't be

Operator

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

Robert Marcus

the a some to for that what coming on congrats lab in there's exposure and your developed to know any add in out view? I your was wanted quarter. tests. I'll good to April I Maybe see start, regulations And implications

Albert White

sure I'm a you're what kind really of applicable because which to, that's wouldn't raising my referring good I'm be to probably means sign it not eyebrow. us.

Robert Marcus

Got it.

I management. think it's in myopia touch maybe some down just to circle It Maybe filings, was of back. I'll your on quarter-over-quarter.

down about talked K. XX% and You Ortho China in

an and globally to both basis market K and the competitive. maybe Just underlying view your specifically speak in China there, on and Ortho

Albert White

we Ortho around Yes, the K Sure. had growth world.

something XX%, So here. do continues our it's XX very upper to with XX% down K or we bumpy. but mean, team Ortho what, QX like well -- I that in and XX% within China, grew,

channel continue So for some is activity happening it's that's bumpy that fill to other whether in -- China or pretty going I us. bumpy. China, be And that's believe, to

we're Now for -- a as market you not know. that's huge us,

MiSight still is year, to as would that's to So of in yes, still that Ortho you're maybe in MiSight, to I'm strong. choppy. some continues we're China. going seeing certainly seeing are K split China. I going within and really for it's claim because and maintaining say, market would the it's we right? with improve. volatility I Ortho not going from seeing the the be K be one to fine to the a of And that do strong, to in Ortho but for probably K an the going MiSight respect expert But reasons volatility little is kind But strength grow that of to year,

Operator

Our Chris scale the [ with line next Nephron from ]. question Scally of comes

Unknown Analyst

it X% than AL, in was on do about will talked X% call, Or better the think the growth underlying that to expectation be last embedded that? 'XX, market expectation? in lens Is your still calendar I you the contact guidance. you think

Albert White

but X% with right of towards would I probably X% upper guess certainly now, lean I the the I would end to stick that.

Unknown Analyst

cannibalistic to on of the that not could it then market you MiSight sense spectacles for get older of you've first-line a U.S. Or reserve the myopia thinking contacts or how already? SightGlass versus together fit how are what become And do spectacles therapy about term, is markets and patients? how like in for got the clean? in be going addition trying Okay. Just longer additive in

Albert White

have able myopia line, Yes, want going that's what's XX that's lenses put years going space. them myopia sports is really them door. things. child people or optometrist It'd almost in don't forward be is glasses. what happen old, the you're to because a door, to and whether going contact and people for that's and somebody if to why whether the you is wouldn't that, going for treat sort optometrist children, is are of One, market looks, the that's in not in put So normal to going you're in out child the easiest you to XX, right? Because activity do the to interesting glasses that get one. become know what contact every to which lenses, to world, will. a to the that the in I for talking that. up when really I some be about push happens fit that's of or wanting an have management And And far think malpractice Spectacles and by to have their we're old years glasses and walks wear going to will single in to a wear couple X progression. But off first fit you're

going the able the Invisalign, And the of treatment The be going wear Because child wearing for is them the going add-on not is be the going is them -- It's that not to be have to with tell. in optometrist thing when child their If to value to if annual wearing treatment you're be their in appointment, it's that, getting lot. they're same and to order to going though, they you're to compliance. for wear has a and right? the a they're successful, to it, glasses to not treatment.

see The has progression to I the control not say, optometrist "Hey, myopia enough parents wearing your them these the to child able is and be can to and glasses, going see they're the of myopia. and but talk

business So a contact treatment." in of of think the do they're myopia going that the get lenses contact value of have so you have higher lenses We lenses, full within you're I within contact to than rate control getting into general. to them penetration

Operator

Company. from of next line Lichtman, Oppenheimer Our & with the question comes Steve

Steven Lichtman

the Brian, capacity quarter. you're obviously investing I guess, behind Congrats on expansion.

expect do So year? this percent to higher in And how go cash and try sales you about CapEx should think you as to flow as years of of free maybe stay a CapEx demand? coming we ahead levels the

Brian Andrews

yes. Steve,

we about is flow first the say talked about I'd year, million up of what free $XXX say probably guess being would last this the half I cash quarter versus I that expect QX So last going year of in sort saw numbers And and flow would I similar nicely then and we're kind we QX. is reflect in QX. as free will cash to QX of see year.

on down a flow is I to pretty expect conversion revenues, year a look cash it, be I to would last I'd percentage should would be improved. basis. So similar will going as I the of mean, it year of at basis. next high. as call be on this say kind percentage a, it we thereafter, and percentage to years But come a a

Steven Lichtman

investments it's update SightGlass expectations? the the term the they to Okay. below Do the Understanding I'm board's curious then behind the near for in a follow-up up go later SightGlass. do there. that. expect go just sort Or bit to you on just the And on line. approval? a given down approval the Got Appreciate it. of

Albert White

have how we continue get that we'll way to FDA about think approval, capitalize and work with I invest conversations EssilorLuxottica. now. the Once we'll I FDA best we to to on are approval. Well, as the launch

half the world spend trying a clinical work market then to determine the get for to we to and right the hopefully, we're we'll launches back including path open the that now, be year. do. And things when the it in a FDA thing around supporting continue doors forth and we'll us. that So accomplish, that to and we're pretty so trying would on product significant the best of next kind of exciting really And forward, approval really and

have go then. the we'll have and see to So we where conversations

Operator

Fishbin line KeyBanc Capital from with Our the Brett comes next question Markets. of

Brett Fishbin

getting of to a some context a couple pricing. driven just by guide on know sense directional CVI of the of as the a I is in just One, then year because ones that you playing X%, much have bit follow-up, full changes had X% quick catch-up curious relative how Just this how price price? And you year of do forward, might a is the little to of the to going continued you And this market, are if for be consumer accepting the some a of activity catch-up relative year? there room little guys bit the think more industry?

Albert White

as to how we'll Well, the on Yes. price see continues move. increases future economy to

As remember, pushback, of to continues the lot date, seeing industry, of we're be growth not a of the significant moved but to daily.

higher is So product sense. price trade-up, within makes of includes that which a if mix lot a embedded that it,

that's So as forward, you're going we where continue to see of move to a lot that.

products. product to it's So that's increasing, a but if mix shift you will, higher-priced really price

single market low where us, going we're now about, that towards where digits You have end industry to the of that's X% probably for it's it's to in sitting. more upper the kind I -- and and is of that, residing looking range that pricing talked -- right for that within the X% and

Brett Fishbin

And then other just one question.

these initiatives. introducing idea of be might little could digital in a some think kind the with bit, to comment, but tools was had streamlining which it help fitting really MiSight I that pretty a you brief bit be on seems of little facilitate new it like friction interesting the helped a of process a

how just it a little process? and on what So help you're expand there doing maybe that could bit

Albert White

Yes, absolutely.

They optometrists in, have challenges parent have what while. is myopia MiSight bring They a little have lenses the to to got out. talk of put the lenses myopia. child. progression of with is contact are, process to explain explain to they and what lenses that child take how in. takes the One The to to the They the

it it, than makes you layer difficult bit it And when contact more lenses glasses. into little a

very and really of process has streamlining able development team the are it it our that and a nice be make So to some improve anything job can that ensure And the quickly. activity team process to marketing fitting faster do there that going that beneficial. to is we done do definitely to on and optometrists understand

forth anything can I technical that that But the attributes say, necessarily to suffice won't we help of what we're yes, get easier that streamline better. do is and so and the into process faster doing. and make it

good you it's a that us So on yes, to is point growth. is because picked continue that help to a benefit, drive going and up

Operator

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

Jonathan Block

try I'll brief, somewhat be ones. to quick X

that I seemingly from don't improved talk Is beat ago, like you the standpoint. maybe has am track First again, anything the quarter. I in from had nothing I a decent feel there X a really AL, on where, regulation right? PARAGARD, know, behind changed just months has

a something about good less seems pretty to fiscal in more correct? start little XQ. Is dire, if there talked just You a It it?

Albert White

little think And There that. underlying ends bumpy. gave product that market, in of get we that's in up guidance I was a the essentially not potentially and we has is But a that back some get When does grow respect before. volumes. PARAGARD, demand able of been being product be approved about That to a going of December, being then struggle terms approval The with incorporated there We the hit a that other a to still that's talked could generic. to that if us. impact product. aspect approved. FDA that would competitive

this year. year, it performance for yes, little me, the at look makes more if bit move we better So optimistic that you through as a

Jonathan Block

with cleaning quick little think, Okay. second bit. estimates. just up X%, CVI, overall a And one, was I in within just line The

But I of capacity when standpoint. and maybe of where out go know comp, APAC? APAC one easier that? on from sort But it that. sort guys ago decently to of a was ROC, actually don't ones the year from look if that's Because could elaborate to signaled you was ahead, 'XX. if at specific just below call I fiscal anything from You EMEA the we

Albert White

with too Yes. constraints. some I a much that little to communication picked Japan bit we Yes. in think it Not about to than respect other up got some on say had capacity

the probably allocation So little here bit when again and will, capacity that that at negatively in second impacted had, look a frankly, constraints quarter. Asia Pac you of and product we

the Asia is strong. we're and underlying still having and But the fundamentals Pac team the success in

the a I bit picking of little constraint on think just is there's capacity things what side up. you're

Operator

Next question comes Atlantic. from of the Redburn with Kirby Issie line

Issie Kirby

to I know obviously, product. how new potential one. you mean of love launches. ] We'll just stick innovation your [ that about within MyDay the potential But have and strength would with product handful to Filshie Clip space, the you're new thinking I

close MyDay I years to XX now think it's we since market. the hit saw been first

How about guess, what thinking new are you next? lens right what launches? introduce now perhaps is extent I So your capacity And a to new in ability family? to does

Albert White

MyDay at years just look a just multifocal roughly ago. we couple an year If question. as I Energys, came MyDay in of ago out an the out Great came think as market. example, the a example, Yes. U.S.

we need to to we Energys around MyDay world. still still Frankly, into. framer roll to the need areas the get we out the more There's multifocal So expanded the out toric there's range. get need markets

but bunch of. launch of activity, a coming associated just be products will mostly you're it years, to So to going for continue that the you've to heard the already see

Issie Kirby

runway where I you units? for in in the where Just if it Okay. ceiling we've really on do guess daily? lot I is daily really for the think And guess, And terms about a you units I what's dailies the in of of but sitting, I follow-up, mean see quick runway may, just terms currently do XXXX? a then just like toric penetration. in talked

Albert White

[ somebody's Yes. when dailies, right? year. if need XXX-and-some and how in year upon go depending of their wearing terms tough they units right, wearing so they dailies, they're many a Because It's a like from us because lenses there ], for lenses are often units Biofinity XX

you, the now going said, dailies a and getting FRP was market, without have kind X-week runway So tell where looked market terms if dailies wearers. and that tell that's just you I and core monthly comparison it's But that's a would tough. of that get you very would the is -- significant in details to of the you at then ultimately, of

market hey, saying, side. years a market to it's So that on great dailies because like where the so something go that's underpenetrated is for the back like XX or I

Operator

There time. CEO. White, to turn President are over I'll and no the this at questions AL further now call

Albert White

Great. to Thank call. for you. joining Thank and everyone time taking you the the

We're really commentary in can We where you we're and our now. moving to tell As response good started really questions, about position we excited a well. the off from forward. probably are year

up I really So you, operator. with catching thanks again, earnings next forward Thank everyone look on and to our call.

Operator

call. conference today's concludes This

may You disconnect. now

The Cooper Companies, Inc. (COO) 29 Feb 242024 Q1 Earnings call transcript