The Cooper Companies, Inc. (COO) 1 Sep 222022 Q3 Earnings call transcript

Good day. And thank you for standing by. Welcome to Cooper Companies’ Third Quarter 2022 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker, Kim Duncan, Vice President, Investor Relations and Risk Management.

You may begin.

to Companies welcome earnings quarter and call. conference afternoon, The third Cooper XXXX Good

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

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

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

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

Companies’ Cooper welcome Thank everyone you, third to call. quarter Kim. And conference

August growth and start of highlighting seventh CooperSurgical’s our and to currency CooperVision increasing strength the has organic and continued in demand quarter the and for This showcases we’re organic for the CooperSurgical strong negatively our services. take consecutive environment, guidance the Overall, this macro consecutive impressive performance drive reduced inflation for CooperVision but strong see. organic that top-line by digit me not chain for was of sixth supply and teams the we’re the the to and products and our ability revenue quarter share business. challenges fertility has double and sustainable, headwinds impacted Let This revenue revenue our double from challenging continuing including incorporating momentum QX both digit profitability, strength of growth.

CooperVision quarterly $XXX $XXX free revenues of portfolio fertility record million with Moving of high up to Growth reached results, posting organically. million. products as an per $X.XX. all-time million was cash silicone reported, consolidated daily the and management our of flow Non-GAAP organically for CooperVision share revenues $XXX led XX% CooperSurgical And we of earnings in hydrogel up for record and million revenues up X% of myopia CooperSurgical. by quarter third posting record posted XX% $XXX

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

our continuing a lens especially with driver multifocals. led hydrogel MyDay the continue and industry the be both in clariti spheres, broad clariti. offer including Daily the and spheres from MyDay Biofinity the optimistic share lens posted another silicone torics, driving solid lenses, daily product quarter world. future Fitting main the contact of The quickly them very reporting success we Regarding is we’re broadest fantastic. accurately. markets this grew to particular portfolio great is on Within in and market that reported continue silicones clariti is in solid and the feedback brand. fit quarter growth from rollout Binocular a about very patients halo details a And remains of silicone taking by And this on remain we XX% available multifocal, effect and breakthrough also lenses FRP results strong and the Avaira the allowing and for System of see hydrogel which This from growth. Progressive noted and growth Asia-Pac. optometrists around of with strength the MyDay, to range torques, our X% successful MyDay for positive MyDay, to of

along in most I’m great with be manufacturing building excited the had we’re today’s in about parameter leading toric And excited Energys and prescription a recently including Biofinity [ph] daily so this the production products. another to really multifocals. daily MyDay Demand extended Biofinity supply variety I’m activity MyDay clariti the lens care, knowhow. and lens how be launching announce XXXX. these supports in MyDay to with providing our with capacity FRP superior for range had Overall, this for of of expanded opportunity. toric MyDay we with Zone the Optics is torics toric made technology news. a adding for cause we’ve to improve exemplifies All Biofinity a continues daily component This innovation order technologically also brands. products, us this using first on and seating to exceed technologies the increased to also a an happy the products wide brand the offerings devices ongoing further core options given offers early of contact fiscal standard toric digital these MyDay with segment, we’ll this disruptions, the Digital practitioners this, comfort. and world expansion on will Meanwhile, lens Energys, lot market-leading perfect it’s Energys market launches, months be requests same leading strengthen launch Energys already which example range of of product customers and Energys, availability a essentially share expanding a and fantastic and with and match next the we’re industry. enhanced will allowing in using report over that gains. CooperVision clinical care Regarding technology CooperVision’s of calendar focus the for greater full offering And success is when use supply a in we’ve great relationships deliver we’ll care and market where eye very We’ve XXXX. of lead around active. several Biofinity day is scheduled remain product which will defining professionals comfort world, store digital on which early a as the will

We Moving myopia million, to including XX%, management, we’re revenues XXX%. leader. where up area MySight up a posted another $XX to exciting market

MiSight FDA strong China, approval data with and where ongoing its and strength Outside the world. Our with backed by in of the including we’re contact being MiSight challenge sales, COVID key to practitioners lens all performing growth extensive due experienced seven-year and main and really China, restrictions. clinical difficulties is ortho-k around seeing remains products accounts have well trajectory private

a effect seeing customers also of MiSight use selling positive We’re CooperVision their other halo with accelerating lenses.

three-year continues the JV team For finalizing September. FDA EssilorLuxottica is to going data make clinical well submitted our SightGlass in myopia of and expect with the the to we’re U.S., submission and relationship management progress. In glasses, the the

FDA the glasses is continues well really so has myopia the product lens QX. propel the potential approval myopia field CooperVision, for growth To management X% obtaining As the finish a reminder, market with the estimated to contact in exceptionally perform only in market of the management MiSight calendar approved on forward. U.S. on to

exam of world capacity. screen has by that large of growth is is exceeding today intact. increase COVID-related challenges trend is XXXX. where, among many roughly one-third driven other including expected that remain growth This macro This eye myopic to here starts time U.S. The in the to Although demand by XX% factors. remain and heightened exam a long-term with back-to-school industry the drivers the

penetration number of the to Additionally, seeing remain value hydrogel shift silicone growing, and we’re price is and dailies The higher products of growing, such strong. the wearers is as multifocals increases. torics

management the categories, in and U.S. calendar wearers was I’m QX all torics showed manufacturer new We product company fast stats proud believe of daily one only the our for multifocals. number to spheres, expect and will leading And product growing global and to new launches, business healthy remain growth fit with remain myopia portfolio, data, leader and grow speaking share to a ongoing robust CooperVision three data. say

fertility, of Moving XX% to led $XXX million solid CooperSurgical. a sales quarter We by reported up posted organically. which

quarter organic double-digit mentioned earlier, I growth. the As this seventh consecutive of was

So to our an strength seen a well. business doing with in the are team. world noted and products particular was around congratulations big and fertility like growth. catheters the part with throughout pipettes, product excellent consumables Consumables Success that future needles [indiscernible], core of portfolio indicator and of

strong So great to results. continue we delivering shape remain in

the challenges fertility fundamentals with the is of but a XX drivers, Regarding start the many factor couples around now very as It’s growth delaying worldwide roughly behind measures, growing. XX% increasing broader fertility There women fertility industry’s impact are these challenges, XXX,XXX market, primary negative are remain childbirth are and numbers reproductive starting pronounced the age healthy. estimated and babies have through more born of age XX. over that fertility assisted annually a at

market Regarding sales, X% in CooperSurgical’s many the it’ll is we come. roughly and to that estimate portion XX% in the billion in grow range years for positioning of compete to the we $X annual

include improved services improving donor technology and the male challenges. increasing improvements fertility activity number and female infertility offerings to maternal and age, of in product increasing cryopreservation In other addition growth to both clinics, for treatment, awareness, drivers such patient access as

growth, momentum Given is to fertility the and be driving an industry factors diversity market certainly exciting of the in. the of

OB/GYN a up negatively including increasing to surgical supply as QX. to of our an we OB/GYN cell But price comp, on birth chain signs expect impacted to medical due and increase as an Moving XX% growth forms We posted difficult fiscal organically. start supply quarter, medical due patient We’ve storage. by was and X% buy-in in such orders IUDs products QX comp the heightened easier in effective efficacious back flow control growth healthy XX% expected activity. in chain down focus million, of related but and sales year’s expect nice PARAGARD. and positive sales we includes office improving and to patient last X% to PARAGARD good down with stem PARAGARD most were device, demand device which seen so this XXX challenges.

past December from in-line this stem X%. our our CooperSurgical, fertility business a against acquisition This up expectations we that purchase difficult grew To was wrap prior enter business. strong. the remains comp Lastly, cell storage to generate would on with of

activity the going making of and parts is progress business other The the are well. integration

We expect impact resistant on recession, mid-single-digit industries to excellent. strong year a as our strong immune believe reported we not are results. conclude fundamentals and but challenges Having our excellent finish in we’re position in an that trends, said to currency business growth. to we’re chain grow To is deliver operate having long-term with material macro core and supply this a

And delivering to price. We’re the the while taking manage long-term proactive maintaining be facing discuss on market that, challenges Brian We’ll guidance. to and value. leveraging taking a focus we’ll we’re where can, proactively results over on and focused call shareholder operations remain we’re I’ll we’ll turn extremely financial and us, with share, we

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

million, expenses margin Operating Third by XX.X% revenues points from of up XX.X%. grew and primarily primarily up last Consolidated were was generation down consolidated organically. or result operating the year XXX X% were XX% quarter margin of sciences. was XX.X%, Consolidated of $XXX revenues driven life XX% basis acquisition gross a as currency. generate

of increases raise prices we’ll is along costs. pricing supply a coming and currency offset inflationary – impact and some pressures. and having results to additional have this work to these We chain impact negative continue significant diligently Within controlling with

at roughly EPS earnings rates and in Moving the $X.XX higher line, our quarter, driving XX.X% and call. with balances non-GAAP the $X.XX interest significantly was below XX.X impacted increased increase. the large the which forecasted of rate to negatively was year-over-year expense year-over-year effective than FX debt shares tax The $XX last Year-over-year worse with outstanding. average by we was $X.XX million earnings time million

which of out In re-measurement reduce to As forward, $X.XX order our and variability we’ve certain nonfunctional trade large last exposures are of and moves, based with made expense. receivables, synthetic a intercompany the quarter, recognized including hedge and in the closing improving foreign income moving was this positions. to part natural currency attributable other

the believe will we operating quarter, FX these cash free strong losses better And do times, income a long-term forward, by the million. extremely efforts impact occur or we Moving below by reduced flow line. which on Returning that job of gains lowered the rate points. net mitigating credit $X.XX to facility XX basis billion. borrowing to X.XX pricing leverage million $XXX at our to debt grids $XXX decreased This was the

debt As a to remaining fixed is a with reminder amount our XXXX $X billion of floating.

guidance. to Moving

CooperSurgical for the We growth results strength revenue increasing the to enter seeing QX. our we are and CooperVision we’re ranges as and include QX full strong year organic fiscal

rates, slightly And XX on roughly the guidance of QX, $XXX a to an consolidated the million expense, million to million X% expected is be basis better million negative to up revenue $XXX by million includes in $XX.X currency X% to guidance fiscal to a of effective interest and increase offset to $XXX Non-GAAP million based to XX% to XX% CooperVision CooperSurgical Specific and in updating of for September. to organically. organically. we’re point range interest XX% range roughly revenues of With For $XXX up $X.XX tax EPS EPS, $XXX $XXX organically. $X.XX which to assumption is of XX% impact performance. operational reflect the rate up $XX million revenues

impact negative Regarding and currency, to year-over-year, an XX% revenues the EPS. to to QX roughly be headwind forecasting headwind in X% now we’re a

fiscal XXXX, be but guidance, me For let detailed won’t we level some high providing direction. provide

to expense rates multiple million due similar $XX increases hikes. Interest currency remain Assuming to they to today. where are around rate

effective macroeconomic XX% and Our rate challenging. environment tax increases remains to the roughly

report not Cook’s growth. a Health year-over-year of low the expectations pending Medical do include expect EPS Reproductive non-GAAP Business. digit We single acquisition These

as Lastly, still is pending our to approval. it that transaction acquisition regulatory pending relates of Cook,

options including process and different and back the XX, close exploring questions. U.S. Cook currently approvals. sale are the timeline June tough potential the certain of We with hoping we’re is the to that, XXXX. but it the given to the to transaction estimate, transaction, by operator to I’ll assets for in And necessary close abroad, The hand

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

is line open. Your

up in real-time organic business Al, the on the their period. questions. commentary for strong the the you Hey, Thanks good taking afternoon. for you Congrats mentioned provided stronger continuing growth growth here picking Maybe on the into August.

for grow check, then are to and is or, CVI both It’s shortages normal a suggesting Just demand And respect wanted is you but suggested to and you with a fertility around exceeding fortunate visits. office capacity demand above what’s function this simply have also to pace? continue lens problem, is a sense, of staffing you really strong double-digit a the back-to-school season? at contact do

and other people. there’s Yes, on that on one. see definitely strong. commentary is some back-to-school increase second an demand that We’ve The of

comes vision to and I demand. really their shortages it on It staffing national talked call. down about strong think

that’s putting it’s optometry all whether retailers on independent optometrists meet that pressure community, demand. to So or the

now. So that’s a right challenge

August. Now and it’s numbers challenge”, fertility it’s, a CooperVision both I that work but the are months. still good on With needs having But respect good challenge over the “a to CooperSurgical, give yes, industry to coming through won’t August, including August, right.

got the tech have helpful. bit That’s now up the around to slower Are MiSight to seeing you. that things right. you’re you started you commentary MiSight’s Just just All any with market? in but compared the market education can the to would that And lockdowns and August into other in shorter about mean, start relatively seem process, uptake Thank available? I little and there, on recover where to I July in China. been sales lens regions love China hear color of med talk that in probably a there.

Yes.

and of we’ve including have the there. if a August uptake bit month where seen you certainly, little things we So seen will, in in MiSight loosen in China an

most of that that the success positive around seen markets on So other that in than news product faster moving we’ve uptake of is the world. and product

positive impacted certainly It’s of those XX% path. the our XXX% China been don’t or numbers. really Because are So now thing crossed that really a I what’s fingers numbers. that’s, on we’re Right. that know, is that’s in signs better a impacted that,

you. Thank it. Got

Yes.

Instructions] you. Our Larry next Thank Fargo. line Wells [Operator from of question comes the Biegelsen with

is open. line Your

think, maybe XXXX. EPS Good X% afternoon. interest any you, heard better digit to think can with line Cooper, of question. about the growth or on low sales color I about to so single Thanks do one currency about you fiscal for and currency that in much could for Brian, growth. about had non-GAAP Maybe, Hey follow other on X% ask EPS, we taking the historical growth, you year-every-year sales Do talk embedded right color assumptions it’s do the up. growth, Brian, but for should the And underlying I too. expense, thanks now, some organic organic those if we I headwind you to $X.XX think I think think in X%

Thanks want few into the we this for think story core Again, just all advance. questions. long the the calibrate long-term Larry. our elements few in that our today guidance to it’s going really provide not right you’ve we macroeconomic we’ve P&L leverage the specific to talk just to revenue we’re of challenging this on there, to just strong, We’ve costs a to about high, year say, drive fundamentals hard got year. for very people to we’re I far P&L right really pieces. to to to important low some going double we’re Hi, and leverage to, digit a want environment to growing in decided time, go give single reiterate the on, to growth a Obviously got and diligently it makes long-term, us controlling grow that Obviously business well, we’ve now, we to followed mid-to-high digits. too prices, share, EPS remain we’re not now single a can. early and raising and But where we’re next mid

questions, but the appreciate update in we’ll that So Larry, December.

didn’t of $XXX reiterate QX but SightGlass million did achievable myopia the on first million for million this year, management in Al hear I looks $XX it on here. based and $XX to all, Understood you and the you

And confirm what’s Just for hit, progression? approval you. Did goals calendar and want that. to by myopia end Axial Thank XXXX. you year FDA’s confidence the here in your U.S., SightGlass for Length

Yes, I probably ends think the up $XX we’re not a XXX exceed over primary that mean a million or only well, million XXX the range. on myopia a end will not globally reason management And being we’re I to at two reasons, little in up or, reason but $XX currency.

it, take one that get would probably is $XX slower, but the $XX, little a SightGlass completely other in. to data it say forward a into that many China by on The wouldn’t good better so I a you’re talking we’ll to on moving won’t on, and we’re get off in believe a certainly obviously and we will be settle I table, I’d bit reasonable, probably number to looking too calendar on that, I submitting have specific a chance details but say approval the that FDA

you. Thank

Yep.

Instructions] line is line you. of question next Thank Cooley. your from [Operator Chris Our open. [Indiscernible] comes the

okay? Can taking the you hear questions. Good for me afternoon. Thanks

Chris. Yep. Hey

organic sorry. broke bit. growth. Congrats there the a strong I’m up on She little

year correctly. chain side, me sure, of off roll you will color to more growth XQ, us confidence still about organic give us ones end? we as but just I to may like two have just you bit thought little little with improves think office what the wrong you of Thank that Could then the here, on into give when that mean, bit little that expansion we the the about make that more looks some the cadence I on surgical expect for start the going a you constraint. a And fiscal you. to MyDay product be when side portfolio. out maybe first, I new Could equipment, the, quick were understanding in a gives it fiscal color about stronger bit supply go the that’s Just

growth gave that QX. that the Chris. questions, you can were range to see, in Good CooperSurgical fiscal Sure. we kind XX% organic XX% guidance for of for in And CooperSurgical

have So itself fiscal stuff move some quarter. supply a chains in of expecting really because QX QX. strong We into did

As range. I within good with quarter CooperSurgical that we a mentioned, but started within both support to guidance off businesses, of kind

any, So QX. going thinking, were touch Hey, be to you maybe a in stronger anything it’s that

You’re organic QX. look of bit little seeing guidance well, going kind to continuing. really up there. those would doing I results the If at yours is up, putting in business think is for is expectations people’s because above yes, and really QX, I impressive end or we CooperVision are most that imagine team expectations some that’s a strong The growth

expansion portfolio, products of the very I our and successful that’s right. new been teams new continue. portfolio, we’re our very and of lot And parameter amount product going a of think our sales and marketing underestimate in a of breadth we’ve people segments active the itself, that’s power a the of to that and we’re the strength or whether launching,

market of to kind As leading I next we’ll be of roll again, going Biofinity year, even already better today. parameter be range as the mentioned it’s It’s into fiscal MyDay up expanding where this is. we

team manufacturing into about really kind really well The the We’ve just to us done been is [ph] on be if daily is job get we’re a daily killer excited up itself. technology strong. ramp of really turning Biofinity you The you to mean, had to today. production which within We at And Energys, do Biofinity considerably demand I’m able has where a about it will Energys, MyDay sci-hi of that. Energys awesome, story, to kind around has did I MyDay amazing. success think launched that. So a for when

product. that So we have

launched forth mentioned, all with stuff of organic all going couple are year. the and to in We so along probably start believe other Toric that be the extended going to early activity to the look people revenue And Biofinity the are I I to seeding months continue forward in that next and support and like Multifocal, ranges, getting expecting growth. is here next to things going what and than Biofinity stronger market

this Appreciate you. question. Thank

Yes.

stand next question. Thank Please you. our by for

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

open. Your is line

Good start afternoon. I’m the with roughly maybe Great quarter. bridge and Brian, XXXX I’ll can the different last by what guys. you just it, out laid be hit down sure you, you EPS missed not coming clearly Fiscal Thanks. components above if $X.XX. may FX EPS. but you something I the interest rate guys

FX maybe So through walk from interest just us headwinds the and rate.

a little up expected of came You on maybe chain from by offset XXX roughly better And – as the than mentioned supply bit there’s well. organic better growth than operational expected a noise, as the a sorry – then was what bips. lot

sure. Jon. Yes, Hi

increases. headwind went was a to versus Interest midpoint a my QX FX QX. XX% the because un-favorability I FX guidance is expenses of prepared gave prior X.XX. The $X.XX. So un-favorability up Fed the last in remarks guidance of

about Jon, were you you I thought asking about XXXX. QX? were asking

let quarter I trying and conference the up and I’m to towards. by go on just of just to did down? I’m $X.XX get you No, by You bridge be you and relative $X.XX, the FX are take $X.XX, – call, rates you rates down just I’m back then just make interest sorry. making I’m did that number when interest FX up. me second where clear lower sort on to XXXX, what like last fiscal guided make on to mean, some asking numbers,

on year? So the full

Correct.

starting it’s with EPS last to Okay. FX, I I XX%. now The Yes, the revenues about was last headwind year quarter talked we now X%. it’s to so mean, – XX%, full headwind for FX being just the X%, quarter

of expense about XX, now XX, saying As it September, there. and we’re in was and XX, it interest XX to relates $X.XX right XX, forecasted again XX that’s

just interest improvement, of So, you to to we’ve primarily some gets and midpoint that guidance in which a slight XX.XX. our adjusted expense – FX tied operational

Okay.

organic I’m think to relative it’s brought a to rebate to new do one you, was there. CVI drivers, correct? year incremental And certainly a last seems that the about And on that but you you And have think might fits? a in arguably something one two, the for Does some is longer recently. I What rebate maybe then some or XXXX? XXXX? just rolled Talk MiSight, one on have we price up, growth program wear, It again. one Is back guys. new fiscal just like we price. it Please or up if step very so, is down I picked have out us year chatter that that then a year that three? Al

are think, what to on Yes, MiSight activity. John, I to you probably referring is back promotional school

So, the strong very I has optometry and the been demand that back school demand mean on to community. seen we’ve

were we As running that or for of part running activity are promotional MiSight.

year price look So summer. we took yes, you I’m took we pretty again, price at we confident this then If earlier that’s and what are there. probably out price, seeing this

price into looking and We’re right next increases now year. additional at

We that from if is driving I will us. the of with forth, entire of have you and still a So be it economy, see and good growth our think continuing. year everything still so underlying are marketplace factors us. the lot incremental for increases holds and inflationary a as pressures the should growth XXXX growth price

Now gaining we’re wearers.

So when well. you fit look data, mentioned, I doing really the at just we’re as

We’re data. number one on fit

entire some and and the And with products, I as space. these pretty we’re continue end well new for frankly, well to it included. continue products wearers comes products perspective. up another out, think, winning good we new to of fit coming marketplace that think launch availability when do you that the doing year when And of from new to you new improve some fits, I price, the roll So in we’ll in a next really and us year, winning combine with that

guys. Helpful. Thanks

question. Thank of Instructions] Joanne Wuensch line you. for next Citi. with Please Our [Operator the from comes next by our stand question

line open. is Your

And Good thank evening. the questions. you for taking of couple I’m a things. about curious

you quantify then about they being talking the a door? one, like-for-like now how going as out price this and And and that’s a Can much year, of reflective product happening third or one family, of increases a such new price earlier those sort are? the Biofinity the then products You’re are are one. increase Energys launches that’s second fourth

I Yes, those points products we won’t to But of ago and seeing so are in few Biofinity. mean, stuff that recently forth, had some only I’ll the took increases around set freight I terms like a at you on actually there think, the other happening one of months different world. some most I different we quantify increases. Joanne, year. price that is surcharges was but increases start Not the different

You right are we will being “increase” a opportunities as at MyDay move which this And other of year then into you is launched at Energys look and the year. price certainly next as through will. end another certainly or launched premium, be will be we’ll that

I’m And continued share. a my is curious your a new for that about is And fit second question new number or is number that spot? one source spot the one

a spot. is That continued number one

On the source?

a then you them up picking is the example number multifocals dramatic areas are mean, of into some variety really well A multifocal who is I are an up picking of what really product than from would about. others MyDay coming talking multifocal it’s on of also companies. depend And market. and new more that wearers are other as doing

wearers I’m new new and wearers, the New the marketplace. XX-year-old enters who talking about XX-year-old,

daily as We as as terms some like of from of trade benefit the we really don’t shifting that, up of our that. doing traditional, have opportunity know, have new to a hydrogel will trade well don’t of competitors you and MyDay silicone, in getting you there and much old if an them lens the do same with of clariti. up We’re

it ends up variety different at look different it’s new coming areas in spots our world. around from wearers and you when growth, really of those a So, the

Excellent. Thank you.

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

Your line is open.

may kind be afternoon. Thank down I you around the assumptions this Have And of how done power good increased know we Hey, so Rico. for the amazing And some and into taking incorporated Puerto those in Al, that UK, think resiliency for have guys the some outlook? about in you costs the winter? the of questions. in Hungary power forward should supply and you regions? manufacturing the things some difficulty

Yes, built was will. talking numbers Matt, challenges ongoing if next macro and of that, have kind he was incorporated with year’s to economy we into commentary respect Brian’s when you about that the

have some then supply issues. do – the you those And you And peers? are? How you’re of think competitors chain of from know your some from do excellent. some much a had of how of those Okay, Yes. benefit sticky some those I you think getting

itself, right? go little around so get I a and the benefit. much the would of goes lens it very say buy. You prescription In contact you script still to industry

lasts have supply wear if that magnitude to having base chain challenges fitting you supply start decent a wear So have changing glasses they their someone’s extends products, whatever, those get or to generally in you order seeing before a issues, or while behavior. of their lenses their chain really

period and So, of I know, those would would now. that don’t if little. don’t high much I time. think go extended stay of answer chain as difficulties an right say levels I very of I change But but very now, at kind supply

Right. Thank you.

comes Baird. of the [Operator Jeff with line Johnson next Thank Instructions] you. Our from question

open. is line Your

afternoon, you, want to Thank price you Al, sorry. guys. said I good you Hey, increases, know quantify the didn’t

Yes.

like having. know, is Jon Al, don’t I’m if Can I was having you See same sounds hear me Block better problem, the this okay?

can We fine. you can. I Yes, hear Yes.

Thank you.

price about be this we should to mean, net your CVI X%, August, in points, maybe side? ranges two say half this you contracting that. quantify on increases, the the another two year, earlier year I would far So, our points total won’t but X.X% the but a it’s are about checks maybe so with and those thinking in I X.X% hard know X%, know

this, And in than think that’s of about some the and others. think talked right, had bit quarter quarter before, those I probably move I fair. for little last in we a slower increases Yes, price us

Some of list their right? have price list price, when on get lot relatively from quickly. raise a So they’ll benefit price, the guys they those a increases

we’re that a brands especially under store anything that kind respect to about doing stuff. and of have lot We contract, with

over what ballpark in now some the those need time roll re-up. the, right So slash magnitude the of increases I a lower. price think is, to longer for period you’re is as of about those a to talking us of in somewhat tendency contracts But have to

Okay.

One, your that’s on you price and well costs, where Okay. side, or in Thank those deducts and survey place the of just that on keep our me two two, work an activity of just back-to-school in those to are and you mentioned those or And And you. MiSight. maybe revenue and surcharges can changed little a longer just would that to little that. you that, follow bit, much about do some not transport on when starting promotion ups bit as into you item? the expect to price, down there distribution costs, then Have lower sell-out? one maybe line MiSight sell-in remind come in to fall expense how your surcharges sell finding a think kind you

No.

our sell-in, in our held So, terms we changed pricing of we’ve haven’t pricing.

to used is some source, the about will really or really, right. who’s you stuff, anyone referral think the if When us The you trying to do We been positive. MiSight. are most product for market has success other successful rate person

wearing thing year who MiSight a give MiSight, third second into back-to-school. parents everybody we’ll who the or campaigns, now people, around right? positive comes of to those refer offer in a some coming them, who telling for for their your type wearer new product are instance, that brand we’re activity you you MiSight, Hey, kid’s for their promotional discount year in So on other trying to are for promotional So,

about Jeff a we’re So of fair to in that There’s little high. doing some there be the been pricing, few a is be activity pricing. highlights that terms

will, here. we with down, list activity, season back-to-school haven’t if are heavy especially price the but taken running So the you promotional

you. On on I other tell everyone side challenges tough there’s say but their freight freight’s has a – a things Yes, still better, getting got still to there. the still the bit are little one, of I things would

those they if will. revenues, through And that all I permanent think just that they? you price tells go gut think changes don’t increases, my are I me

freight. Yes. fly advantage Freight we’d revenue. to difficulty able I us mean, meeting the we’re only to to, of thing take more I like would add and to it not that is, than ocean having the as does force demand, we are

So, all charges you’re across freight board. up go mean, seeing I the

we that freight we’re as inefficiency surcharges raising, by but there’s to customers manage in seeing having and detriment to try whatever our that to still to doing can that but and way so company, out We’re a also in inter shift you’re distribution. forth, a to both

makes sense. right. Yes, All guys. Thanks that

Thank next JPMorgan. of you. the [Operator Marcus Our Robbie with question comes line from Instructions]

open. is line Your

Hi, question. taking for Robbie. Thanks this actually on the for is Lilly

in were what lower today. than significantly and lower ago we thinking So operating came margin than pretty year a

So how is that is there to operational way FX versus any quantify much headwind of challenges?

Hi, that one. Lilly. Al, this take Yes, I’ll

you’re seeing margin or us our for quarter. margins more we in gross you’re P&L, brutally operating think expected year’s FX – less quarter. last was that PARAGARD third third in the killing came I just is that where a and down That’s high product. seeing versus

So margins through. that and impacted the flow

we had also within quarter do in knew which third we that shutting usually the and down into do. to we what We about always to QX inefficiencies CooperVision, going lines fiscal tied refurbish,

we knew a of some story knew but FX. about it’s really activity the and so And we and about

stand And lagging normal much. geographies being just as it. to there levels? any so out levels are where now? a Thanks Got follow-up; helpful. new above is that pre-pandemic That’s right fits are or And relative

pre-COVID at kind Yes. world there’s even different data different got being much we of the X%, that It’s because pre-COVID through shows data fits below levels. not U.S. And as spots as new really just are interesting going XX% data levels. that the around back to

at data – of X% the wearers look the that happen fits and industry strength to still back that getting in there data, today, into just fully the things people you opportunities maybe get then about of potential able numbers not fits. fair, get that a if their have and where of prescriptions back different to increasing, revenue ways. lot to we’re believe But and to get that over in that to wearers coming showing forth, pre-COVID to we terms lenses levels or so market, right? is pre-COVID the getting like I kind to fit renewed you the those is buy you Telehealth the the captured get in of the be like go, excited able through You of are are different XX% So ways knowing levels so or not years. that also in are can get man,

it. you. Got Thank

Yes.

of you. the Instructions] Thank Lichtman from [Operator line comes with Our next Steve question Oppenheimer.

is open. line Your

improvement on your potential on seeing you and ground the are get do Brian. for you from as What improvements comps. what Thank PARAGARD you. Hi, here ahead? confidence Al and PARAGARD Al wanted just to see beyond for there drivers easier the

We’ll in Yes. started of because at had the where PARAGARD. we with QX tough On quarter. a we Matter here strong finished PARAGARD comp. good August. end we quarter have of off this the We a fact of said well July

obvious happened, So there bit concerned out Roe women for Wade with and v. little about a things are what’s reasons. and they’re more

we the women you’ve and here LARCs okay, you of efficacious that form that more what’s in numbers well, have go the in recently. seen should most birth seeing control? here? in So What are at are interest – We some of I direction seen looking an increase

holds, if it that trend to see if continue IUD. So does, we’ll in you’ll see outperformance

you a was a to envision positive a v. that I it say kind We’ll I modest, that saying our I how PARAGARD the to I would to saying upgrade see So positive would if modest will, QX for outcome of to that would us. probably that Wade turning quarter goes, Roe was that’s business. decent be in out a to but sure. neutral that’s

to year anticipating at flat is outlook for And you about and What and this directionally talked think are CVI. of a Got in lines Brian in Okay. across versus number your CapEx? it. production, Al down, next CapEx be spend up, year I you year this ramping

Yes. Hi, Good Steve. question. Yes.

lines prepared quickly So in we ramp-up talked place about hugely in CapEx as we’re we’re we to increase up meeting to the quarter. capacity. and some doing – bit as remarks we’re can quickly Al his and demand. difficult in picked third can a we tough put capacity time how having a It’s little whatever

trend capacity but next to number demand. So the kind flow expecting go to put quarter. I’m try year, to meet in continue a CapEx high Still where place being that of in strong fourth to full for continues higher continuing expect, year I we more would as free the pretty cash CapEx

Got it. guys. Thank you

by next you. our Thank for Please stand question.

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

line is open. Your

Yes. taking just on PARAGARD. Thanks for a Hi good afternoon. questions. the Maybe follow-up

so noted of the I in confidence growth you – a it to but market, like think softness the fourth. fair bit quarter, it here returning have sounds you in last in

point? you’re at this that you to price soon, on is So I know to again any took passed going guess opportunity us And with take of dynamic be pricing, then market price, PARAGARD? kind at I just laughing but

Yes.

impact After be challenges, the I’m matter. OB/GYN PARAGARD. We that down visits and visits So visits PARAGARD visits PARAGARD, I will of office situation is, v. summer PARAGARD OB/GYN had we’ve attention due a to related other obviously during – plus that office stuff the and you negative the respect patient contraception to of OB/GYN things bit was that because down like definitely things right. Wade XX% to improvement COVID same a staffing on months. capacity, with bunch And little general terms did the Roe in some that sorry, highly saw But offices see seen it’s you benefit efficacious, world. seen and efficacious. in optometry We’ve mean, if on in attention focused especially a more traffic, of of to a and has areas sure a couple I’m seen everyone we

as So it, that, IUD interest and inquiring get become in PARAGARD look pregnant, of non-hormonal for seen and people the it. don’t searching obviously an an want to about marketplace. get We’ve is the the more of terms IUD that you if product in people at only people in increase aware

has think capitalize to trying that Our job activity. a really on nice done team, I

our through one one appropriate. a price of increase continue that saw take can, starting here price yes, see did improvement it growth another in evaluate doing QX. TBD or think you’ll if So We’ve and increases, seen if we one competitors in I we will and it’s is certainly August price here July. on

not sorry, contribute on management Okay. that to how so to out. it and when if myopia And earnings? portfolio should be XX then shakes Is that That’s to starts wherever to going profitable, at we about XX helpful. Thanks XX much. think

the around year. somewhere that call breakeven of this kind would I Yes.

support just go management build say shift get Let’s year. as forth. lot and infrastructure of infrastructure in myopia to and to year. it’ll profitable – so breakeven, a people being let’s next We leverage of then We’ll next we that into with terms it’s start there

we’ll gross get next the So, what it year in pace now. that grow margins gets yes, and that’s some margin. hopefully yes, with the an we’re in better the operating margin continue right as if Hopefully point growing It positive, then improve and drag certainly to it’s continues future seeing that especially to at be at business. that to margin operating operating

Thank it. you. Got

Thank will I turn you. questions. remarks. I’m not White showing now for any further like to Al call to closing over the back

I is the everyone. you. us. optimistic. us – are business core what for touched currency has it Thank Again on one fundamentals been what making you painful It’s thing brutal. the what’s strengthen Great. we’re been pretty driving and Brian mean, the Thank

having business it’s quarter and year We’re we are going about remain or taking whether we can believe it and at to Started they’re well, strong its fertility CooperSurgical and especially the things a optimistic good year. CooperVision that measures of that finishing we’re strong. well, this we off QX next if fundamentals best the currency can But and the working through the we’re look exclude we really and business, take. the

I at Look QX here, the the So Thanks appreciate with you and seeing people, everyone’s look forward Fargo hopefully forward during else speaking call. on next of to the Larry some think to week, quarter everyone I interest. Conference Wells to

gentlemen, today’s Ladies conference concludes call. this and

disconnect. now You may