The Cooper Companies, Inc. (COO) 1 Jun 232023 Q2 Earnings call transcript

Good afternoon. My name is Emma, and I will be your conference operator today. At this time, I would like to welcome everyone to The Cooper Companies Second Quarter 2023 Earnings Conference Call. [Operator Instructions]

Kim Duncan, VP of Investor Relations and Risk Management, you may begin your conference.

to Second 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

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

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

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

CooperSurgical to another and both welcome, quarter with Thank Kim, Quarter and was This everyone, CooperVision strong XXXX Conference Cooper Call. Second Great. outperforming Companies you, Fiscal expectations.

reported double-digit we ninth and quarter CooperVision, quarterly record revenues our consecutive of For growth. revenue organic

record tenth our quarterly expectations. reported and of For its earnings revenues CooperSurgical, double-digit business reported fertility quarter and we organic revenue exceeded growth consecutive

Our and we're growth, momentum. impressive teams are seeing delivering consistent nice

remain we future. the about very So positive

a fertility be to and by continues earnings portfolios. $XXX posted the $XXX myopia growth daily CooperSurgical's and Non-GAAP high device medical numbers. CooperSurgical Consolidated $X.XX. led million. hydrogel up share and quarterly revenues per million, growth organically. record CooperVision XX% of our million, management revenues silicone and up revenue our was CooperVision's Moving reached led portfolios, posted of of $XXX X% to organically, OB/GYN by were

for strong lenses silicone continue the be MyDay the growth and and driver broadest contact the Pac Asia in revenue Vitality from flexibility monthly growth to on For main strong key XX%. modalities, with X-week Daily hydrogel quarter hydrogel was lenses, torics organic with driven ranges, and portfolio CooperVision's grew launches, our lastly, EMEA range of growth silicone Within an grew by a Avaira Results XX%. especially lenses and X% geography, multifocals industry, hydrogel XX% multifocals. offer and on product and both Americas reported torics daily expanded product the especially reporting of market-leading percentages diversified. grew silicone the we and all lens and By basis, were accounts. X%, spheres, grew X%. Growth growth And remain of Within clariti Biofinity available with wide categories, of healthy and performance new posting MyDay. and

news alleviate today's of DigitalBoost our really a U.S. their receiving strain. their rollout like patients the as in Biofinity XXs patients original The innovative by positive XXs. heavily the been used going technology lifestyles is incorporating the and in XXs digital great more latest well. impacts is offering, that been feedback products. MyDay caters to has exceptionally of to Energys Energys which to of lot This lens of Turning premium demands we've this by Interestingly, eye lens

Given which blinking uncomfortable, to and wearers eyes are Energys. are it's causes screens, time not surprising reduces of considerably dry appreciating DigitalBoost out almost in on and all more us all that the their of MyDay ages become spending

Meanwhile, available from expected sales positive. EMEA MyDay these and report new are seeing practitioners as customers proceeding remain Pac. remaining multifocal in Asia and the more happy becomes we're to I'm in better with than geographies and feedback robust, great momentum launches very lens readily

is recent parameter Toric our of MyDay in continuing in schedule. rollout EMEA ahead expansion America launch North successfully and Our is also

product, lens lives. Given SKUs, forward of toric X,XXX their wearers MyDay future. to the the toric a monthly Pac option set widest throughout With launching market in has wide daily with Asia margin. range in providing looking increasing EMEA, a near many availability the broad range, be With standard almost Toric for we'll this enjoy success the time industry first and the in contact we're the it's by X-week and in the freedom wearing this of daily the to

product this family and exceptionally momentum at well is is technologically superior performing conclude To MyDay, strong.

segment, lenses mass continues by And at to well option clariti a offering lastly, family price within perform a point. of market the high-quality our daily

led online, have to healthy, Outside with good new shape still come in for to remain ongoing dailies, offerings. capacity we of torics, demand But range some Biofinity meet demand. multifocals by We extended challenges. continuing production remains and

MiSight track strong revenues up keeps We where slightly and world, Moving sales except a see to MiSight myopia $XXX of goal until XX%. to management. the million, exceeded in on Ortho-K the with of quarter. well didn't $XXX this XX%, we China, rebound expectations million reach around $XX late our This us were up to posted year. and million

a of lenses. as there's we nice as practitioners All but availability specifically, our MiSight well higher CooperVision patient regular sales increase sales with the we're process accounts, key use of improving bodes halo also integrate channel. other performance MiSight practices and seeing flow other Regarding target for in our this pediatric when effect their levels into for accelerating products MiSight,

standard to community extensive is This the is of health of remember and important the a and associated as risk become degeneration. of in along is lens critical contact first within differentiator for data. management eye that control cataracts, myopia FDA-approved myopia reducing clinical eye myopia only the of children MiSight the backed proactive long-term and care reduce myopia, the product the such progression macular It's to with with problems detachment care help retinal as by

in To calendar market faster with at finish CooperVision on grew the contact XX% CooperVision, XX%. QX, growing lens

years shift pricing, ongoing multifocals silicon myopia expect many we portfolio to the its from expect launches, remain year dailies, the and this, use leader toric factors. product correction. XX% will by combine that when this solid and increasing the roughly the new today. fit It's with business to industry. to This data. near-sightedness the XXXX leading markets the hydrogel needing by vision is We increasing other management growing And fast-growing a more to of such CooperVision product supported Within or XX% people by healthy, we higher digital robust on up for products screens, among the estimated global focus value remain population of with and you have and growth trend higher of expect macro driven the myopia

another strong This quarter. to CooperSurgical. was Moving

consumables, as our $XXX sales product with the was activity. Success momentum genetic Americas lead regions. as posted diverse up seen and continue business capital both the team offerings is we growth. bright portfolio the solid Regionally, executed and testing within reproductive to in for of equipment, and organically fertility organic consecutive tenth throughout its growth exceptionally XX% quarter the double-digit well million, EMEA Our future donor of have

we and of are potential also that Asia excited well Pac about is region. preforming the

With that. our and doing In Cook transaction, region this targeted the will uncertainty do activity, advance more also do efforts ways the do have that we work light, we're of in build to investment we while we can out exploring footprint to currently quickly.

portfolio success maintain to global our momentum. positioned given and diverse well we're though, strong team, Overall

broader X to coverage World Organization Health and prevalence thought, affects benefits their The XX contributing released improving growth having of old, key multiple woman's assistance. include and Asia age for unique both developed that fertility come. average challenges. the experienced people of technology X delaying fertility market, fertility stage many Other to the drivers and stands compete X more strong other with first now years several growth over is in has a Regarding birth is need just billion to in a for sales than The we in industry female increasing growth updated years infertility starting factor a This segment within infertility countries some annual improvements people approximately now male fertility it the in that's at drivers, childbirth. that the at expect with lives. data access in and patient U.S. for in we and women we awareness, increasing treatment, showing in

trends macro this support clearly industry's So growth. the

storage stem activity posted products, positive excellent Moving and and Medical core well. office to cell Within performing in reported million, In results and $XXX and Devices, in delivery group which PARAGARD, patient labor strength particular, OB/GYN surgical trends driven several we OB/GYN growing really products. sales by X% includes this, organically. up Devices continued of XX%, Medical our

X%, grew expectations. cell stem Our line with in business storage

just looking with effort cells stem more starring we're traction. Chrissy forward the positive we're and that educational current campaign feedback, to highlights happy Our newborn and of Teigen preserving really the gaining importance

increase primarily from XX%, in price declined PARAGARD Meanwhile, activity due buy-in to the QX.

not to any remain a growth expect year. this in revenues we're unit continuing and IUD PARAGARD Our challenge,

we growth any by will price. driven do So see be

we pride CooperSurgical is the it's To minute with great on every that that baby products. world, conclude born say CooperSurgical, a using around somewhere

We're a such sustainable fantastic makes difference Our fertility. several also growth markets business people's in lives, have that. we and as operating love in that characteristics, long-term

good and about positioned the what future feel we So we're holds. where

quarter ninth business me businesses growth its to double-digit record call of quarterly both of posted and stability CooperSurgical's quarter growth, our revenue. and summarize turning posted saying tenth the consecutive consecutive Before this Brian, reported fertility businesses. highlights CooperVision quarter the its over by consistency and of let really double-digit

strong. is momentum Our

a are investments fully at is solid our in and yielding Our engaged executing management level. returns high team

accomplishments. to ESG hope efforts important future. of part in be lot is Cooper's I our success and a the everyone which the lastly, an had our excited culture, I'm we've what read accomplishing ESG has had And report, of we'll a highlights proud about recent chance and of Advancing

turn let me to call Brian. that, the over with And

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

reported organically. Consolidated Second currency up XX by million, up consolidated X% $XXX to improvements. driven XX.X% revenues points up was basis margin X% quarter were as gross or

$X.XX, was due in Operating operating million was was tax last expenses of roughly year, investments Non-GAAP interest $XX XX.X% down with effective was with at line Below from commercial expense XX.X% consolidated and rate primarily income, expectations grew shares margin the outstanding. XX.X%. million, operating and EPS revenues X% was to XX.X%. XX.X to average This distribution. and

negative this expense as consolidated expectations, To was along taxes ahead revenues flow an summarize $XX met additional net impact in fixed to the our expectations. we exceeded roughly FX, the quarter, And CapEx expectations. Net items, that and P&L we interest was $X.XX from guidance. $XXX million last by billion. $XX interest slightly this came against The our and of in cash while of million, such expectations non-operational initial $X.XX including debt. EPS Overall, on quarter, Free decreased we'll pass debt of during million. rate margins

we X out -- billion roughly X fixed, we're years. now now going have So $X.X to

to of billion, consolidated be to up to Regarding revenues X% organically. our organically, QX and of in earnings revenues positive. XX incorporating $X.XX by expense $X.X billion, of X% $X.XX QX. XX.X% increase for support be to XXXX both forecasted to expectations in increasing rate to XX% is and range billion Non-GAAP long-term million in This and below beats. we're revenues up revenue billion, up long-term growth and $X.XX and around X% slightly growth the month, incorporating and this to organically, X% with EPS expected to by billion earnings businesses be CooperSurgical of another results $X.XX million, X% this, the across revenues basis CooperVision assuming $X.XX we're remains the objectives. effective Demand Within very invest Fed strong tax are our to $XX.XX. trends when businesses $XX.XX continuing to our expected to guidance, is Interest is $XXX rate point to

as this fee with me that Cook the reproductive we Medical's million for does pending Before believe not transaction of charge originally the concluding, We $XX now it's took business. let health add breakage that associated contemplated acquisition probable this a quarter close.

the working still as are on though, information. we'll more and deal, provide we We updates have

and guidance execute In great year. positive, conclusion, to operating strong quarter. also continue our we'll this we monitoring and again a taking remain revenue this but was very consistency through we're half investing results level, with have and year momentum. we'll another drive back closely sustainable delivering strong businesses, expenses of at the We're and high We're so, next to of happy the long-term We're up into do growth.

that, back And to I'll hand the with it for questions. operator

comes Baird. the Your from of Johnson line first question Instructions] [Operator with Jeff

know else I when like you kind of data. look that sell-out sell-in and everybody guys GSK Al, So data at the we data, report

weaker never was think a pretty apples-to-apples but medtech. contact really I across January in that, it's month lenses. month. April, So very it's strong all It clear obviously, a for was of

X% just reported what help you XX% February, then guidance updates been CVI range feeling April us high so the March, about end period understand gating the of the low of on you've in now end of you're kind quarter of to in just the of range? how just kind the of any So throughout just seeing versus maybe And implied May? that and the kind half, far maybe back the for

Yes. January strong right, And was you're a month. really

weaker As for mean, February through us. a we it was March. a I month okay. the good is was work month, April quarter,

in can at then the to you grew XX% if quarter. compared kind the quarter the the You fiscal us in because quarter and calendar see fiscal XX% that for grew calendar look quarter of we

those trade when months So you up.

us. May good So April We May, kind a a you're was May did stuff month been from -- a of weaker. have little has some for little good right, month. April but moved into a has been

marketplace seen lens for the at we've contact of in month our May. the rebound least business So

So that's positive. a been

you something your for X secularly this price have ballpark keep probably how then expecting? good mean, lenses, that. that year environment maybe up And tailwind Is at as and persistent like kind a the term, low address that the to just pricing. just in Alcon there. is the to confidence was follow-up, where maybe then guidance, CVI of It half on seems of your to end question longer that comfortable next X% there's a points, you And you data a few Okay. to of if can we for, X a in we implied your I looking if I inflationary the back for talking or other some But the year are X%, pricing some real XX%, ask follow-up high years? about can stay and you're wanted pricing X% to competitors

Sure. think you're Yes, I on. spot

actual X% has to good X% I now. and way X% I'm at out think that is pricing, to X% look you look about everything higher. to price we've a look net there has pricing higher. the talking is if right way net that The to the at pricing been But at increases actual it. seen else, rebates it The been probably

think I continue. to going that's

contracts. especially do a are probably competitors contracts some contracts, lot our we're bit because have that that of think that bigger of multiyear large brand store I little behind we in the a

look I at years I you're we'll seeing within that general. constraints industry you're to for think next that given frankly, think that to those. now. those the But opportunities on see So And supply renew, in several as going adjust pricing the

and economic It'd look at have derail higher the that our the If the performance something half of coming out on I X% something other I time range of I mean here forth to has that recently. strong back past at spent optimistic Some XX% so some a all have expect CooperVision, debt that. revenue this good with be you're of ceiling event been some activity guidance there. the been right? the the in we something tough no, numbers. that happens put little of talking the be to a kind feel with momentum. unless it's about continue week, going bit unexpected, end we I to for But year, for to we'll us even up time of and or to up

with Wells of Larry line the from comes question next Biegel Your Fargo.

I changed us guess bridge you quarter. think favorable, Brian, top and amount The And in this top the question guidance line, little beat by Yes, to on question that had would ask raised the more I I quarter line particularly maybe how the the last you I'll was could line a not I why follow-up. a quarter the guess from the the of FX here. more on bottom little EPS. 'XX? the currency for than help first with guess raise fiscal much is beat? I And by the one

bit was sort Currency there then and I question. little the of kind the to through were quarter favor to starting quarter retraced. the down OI. revenues impact we negative a the P&L take move I'll we very little saw from the that line. But positive a mean currency -- they our Larry, losses really, tied of FX in of is working our as below the was positive to to in

before, So we're smaller several talked we we some currencies have currencies hedging hedging. still had our of we that -- not but material exposures as and we're about

the that interestingly to to a we the loss so all of enough, being in the quarter, or impact the been better. But currency strangely $X.XX, And year for second sort had kind line bit our earnings have currency netted the we half basically a but of below adjusted of for down same. would little the took the for

weaker year at looking a X.X% . the headwind or still EPS to tailwind we're and to X.X% kind revenues for So roughly of a for X% the year.

more beat? than by the raised not why And

EPS? On

Yes.

margins light behavior exercising the and or we're the net shifts. things Fed, FX, And just prudent the macro. progressing, caution Al just in demand that But we setting in of good we're -- and seeing we're Well, since beat. operating expected look, everything, with uncertainty, are as The we recession, some decided in exercising raised news as operational with by macro is fall the not -- said, gross guidance. just

That's helpful.

Just, Al, follow-up here. on my

Asia $X sequentially. a Pac, in I'm sequential up myopia -- plus That sorry, heard management, growth growth $XX correctly, I was increases if million, while. seen the XX%, of we've really million And strongest strong. X% with the absolute one

drivers the about management talk the sustainability. Just and myopia Asia and Pac in

Yes. Interestingly for until MiSight We struggled China great the good of interestingly, on myopia about with was MiSight, a it some gaining We it our finally time. end long a real quarter traction some management, was to gaining finally. And this be quarter. we're It’s talked traction. actually it and in China. the very not in quarter,

being U.S. and here in was driven throughout success big the in MiSight were Asia markets in Europe of by the the drivers, some So Pac.

So with I good quarter, think I'm good and management QX quarter. our we're myopia shape good business, a QX to in to be be expecting a

As we're $XXX good range if million $XXX myopia I I certainly for to million our was to in beat management. hit, saying, mean, shape not "guidance"

we're is quarters running that to Kathy in great say Asia regular put we're Asia I as our and of good Pac, at more up Pac, some China a half back being different this have I bit shape. of doing a and year. look it regular if good finally momentum would continue But to terms we Asia sales. Pac, going that in contributor job through we and going a of think our lenses was the in I business, little no, move

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

you where on pick part X because quarters think Or sure setup start grow up there? another how again? Can do this understand to then pricing little that PARAGARD headwinds you've what's that? got and going I to I of want a we about I bit Is make

QX kind probably expect growth question. I for to QX. up here won't it grow single-digit would and here in of put kind And in us, for We in great that that the PARAGARD a the of it was It’s obviously. be way. No. No, around to increase. of have channel, QX, tied year. kind this some that inventory the movement But of of quarter some price did tough low

into full So not we'll post the growth unit said kind too post prior think QX of QX, of the We're okay I growth there, restate year. that. still some envisioning what an for wouldn't but much I quarters. would necessarily on read okay I've and I

of Excluding pretty to there really was describe a the PARAGARD, rest in that weak because that business quarter? way doing the how is is link the much

obviously, Well, Yes. fertility strong. really

performance Just -- really amazing and around it’s the or job, diversified consistent product family. just that an team by -- strong is so product and doing world

in in well should fertility shape, do to good So fertility. we continue

of side Our strength in med some device really We've our business and products seen and traditional Devices. kind our Medical delivery OB/GYN the is really doing doing labor there surgical some well, of well.

outside of got mean, good at over that -- I PARAGARD, humming yes, a So CooperSurgical. was quarter. it that Holly's mean, pretty business I was

up results. So continue put to expecting them good to

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

to but lenses, than as numbers, just a gains data little it slippage price multifocals that. And dailies, first maybe declines, year at bit fiscal of Al, of as it just little the us, would for was And at in and put according on Again, dailies and in through like certainly, bit well like contact looked PARAGARD. there then a our just earlier first that in I extent the of that maybe a plus couple for of was X%, clarifying maybe looked remind Cooper in be two increase perhaps So volume year? you guess, share the competitor quarters least the overall higher my at in just the looking Can the of was torics terms the question. in

on trends through overview an just May share lenses? in So the

know Sure. I a seeing X% don't you're volume. would in put I was Sure, Yes, perspective, price down actually little What just it's some quarter we The see not of and the inventory, Anthony. our if driving you're to and office, much the we distributor volume the that here QX frankly, you'll increase, results. QX into too highlight as-reported I physician's fluctuations think, more kind a in PARAGARD from in necessarily bit whether place. had, seeing here channel tied through or is and on

going regardless through increases. been haven't seen how just volume? And volume and of if that I'm So those flat, we're that, I looking try like That's right, has look we actual we not you really in say, which anticipating near inventory, where think to term. the I at here do, are to

I said again, on PARAGARD. I'd say that being as where now, last So we But it think and I'm with as conservative. it I quarter, again, of that's wrong right stand it I hope

lot a again, movement tied of But inventory. to

be think And do we'll growth that do I single-digit year. in post I we'll the So some that QX think low clear. to in get QX PARAGARD and for growth full

On contact a was mean I lenses, yes, great this quarter.

if X%. you and it at Now and of Biofinity grew look kind back say Avaira you and step you

can our X%. You grew non-single-use other see sphere

that's kind Biofinity So that what -- a bit did some of from you're May. of have quite sphere Sphere of getting you Biofinity April side to, activity Anthony, the couple is there. had right, larger which fell a things. We of orders And into

read that a business. wouldn't too of but came at QX good end, from little when that up in that. you're yes, off good if number I into bit our look pick I a as about part thinking perspective quarter we mean started So you that lighter, a much we'll with quarter

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

with flow It's to the to forward? and free flow behind little thinking the few been wanted cash it? low how speak Maybe general. in quarters. I reasons generation And cash past going start about cash a you're flow generation

sure. yes, Robbie,

to higher. a We free some So cash do drive little operating are cash have lower. things driving continues flow that flow

years quite than past. is obviously, CapEx. higher in them, It's of One

the keep going is over what last at, this Taxes it, to from $XX up. Some components other mean $XXX year. downwards are interest having going tax million expense to an from course year million of horizon I driving are impact doubling our rates frankly, that looking you're time larger that -- on depending our interest. are

Our are from inventory also last going levels this year higher. to year

be our I cash an operating deliver year. expect overall, for strong flow impact and a well. But continues this still So to having cash that's to as mean, flow free strong

Just which million offsetting, $XXX higher it's been talking cash around CapEx year. obviously, this about we've the flow, operating the just

Great. on new maybe And fits. then

You you trying any different future divergence trends and talked a global there. Just regions? new seeing the the business of get strong sense in of about to the fits. Are

not really. perspective, fit no, new a From

In And looking of still new new pretty we're there. is share really and fit. optometrists and our new CooperVision good demand when winning terms pretty it activity to There's comes right forth of is certainly seeing a our regional, good activity appointments strong. fit activity lot for fair so the fit now. We're on

So I'm that from pretty optimistic perspective.

Your next line Mishan question KeyBanc. of the Matthew with comes from

This Brett is for Matt. on today

given to the ask a a bit deceleration robust historical several wanted little a quarters in how Just here. little looked bit of Europe the about trends of

Just wondering if driving there anything step that was down? .

have Europe we're it there job lenses. great but if we has to strong. where especially around also done Brett, independent accounts -- -- we're contact our building you up when the only with lot comes the in a not that some optometrists infrastructure, #X franchise fantastic a got team We've will, a key of of

I no, is the that So think market European doing well.

strong leading economic will. continue we'll think there, if to concerns We And a have I contact of kind and the you The that. not market is any we're or anything. to lens seen pullback in tied that do market charge,

right. quarter. the in turning fee trends retailing in Americas like driver then And just to MiSight. step this sounded of the actually up All It was accounts

maybe drive range to China given starting the it's some guidance do -- a potential incremental might now recover to So you and is seeing that Americas? upside actually be the it an to in is there like positivity see -- you're driver seems to

when I spot would XXX six XXX. in that be MiSight it were months a to we yes. better we than Yes, that comes initiated guess, when ago short to to we're answer today

that shot it. even or end to the of at above higher a So push good I got we've be range think

All for right. Awesome. question last then me. And

a touched driver pricing positive I growth. on think industry chains some for you the of the continued in supply being

companies Cooper production? that issues been So other particular I your pockets wondering there was in from given making if you've be the are of any investments benefiting might own

think supply Yes, too are there that's we all tough there's in of now. chain right one. that There I have disruption a challenges, from much think others. I don't terms

make competitors do, think and of of we are a I product. too, enough of in everything just to now. can lot do we produce us right lot mean, I selling Our a cases, terms in being able that

you not been whatever right? I'll So demand. dealing a and distribution up. have quarter and a ninth puts on to associated having the your pushed we supply channels. ourselves, talk issues also and But those of mean distribution time, are more our else product products we make about are I with X%. chain with certainly everything pressure more with dealing growth. up double-digit through And lightening only that's business in We're now That all terms could we're business healthy of for around what straight long run growing

supply on perspective. a that there's natural from So a chain challenge just

I think think going it and industry-wide, seeing kind throughout of struggling see one person But of to someone because challenges production of our in deal much much increasing demand networks. we're is think and it's it takes seeing to the as lens up picking or business, the contact don't global industry. terms chain our capabilities capabilities continue just lens so as as contact issues else strength much industry. I is because you're too the you're all we're demand there, it all in of continue right? effort, takes expanding to logistics So to and going time, the our we're with I supply

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

of I do have a you're tail toric. any And this growth We've toric? the again, share inventory you wanted what I to but toric impressive know Biofinity shift for been conversion in you to How kind are few here, picked toric. toric then is Biofinity ask to lens to shift some channel this broadly? toric around greater to able a metrics you've pretty sorry been going with any toric quantify from from Al, on was not Biofinity whether competing but it's up or maybe on maybe while, or adding revenue more with a of even is into pack channel to seeing inventory left much or and how the quarter? much hearing

had honestly. Yes, little we and I weight mean of ranges just those there's but SKU on some back we've too SKU on bit don't probably competitors ranges. much there, something some put a have I pull their it,

out franchise and multifocal roll it's now. Biofinity so franchise family widest We've mean, offering in the building forth, a just a lot As distribute all of manufacturing when years. our on our manufacture on able products side a the also things range. like for out toric wide of and a spent a distribution SKU of been that matter the those tort to to And number I lot time is network right of fact, there. in and you and an money amazing We be toric

or getting do of has and an sticky it's business us drive maybe in in this some Warner ranges? some like terms SKU a great a coming that does and That This bit coming portion is little job. multiyear action a just our strategy fantastic isn't on really because Jerry But of market their So as growth competitors out and one think a or somebody of runs a pulled appreciating because Yes, market mean, to of competitor of strategy the that I the torics growing there CooperVision market. a for sphere I the that back faster because market, great laid is is He's took. is quarter torics. multifocals, than of growing. probably. we're help deployed that

And we've, do small allowing mean, around share. give we're take by lot of invested lot is lot be more for that a a us to lot activity in credit I in. a money I of the movement position I again, team of and So competitor that saying time a the than years to a a

any at here. sorry, or the can actually Okay. PARAGARD another That's seeing helpful. share or not on inventory I ask to separate up whether shift And comment -- shift maybe one follow-up. wanted then on shift then all? just you your you're channel But but in follow not share if

for product Cooper? which or grow. where to probably focus this commercial advertising different in asset you'd you've options get for greater to a better said seen different sales some recondition, strategic the every still tried make tough. line think has maybe come evaluate We've Does fit way to there and point the here look I effect PARAGARD been good financial

Yes.

referenced but little go inventory inventory a with some say we crazy Biofinity about on since we channel bit side, probably were kind that asking. I'd I'd say our of perspective, channel a the probably lighter nothing shipments. little a a the On inventory. from ended light fiscal to you're I little But quarter of channel

money put into some On PARAGARD, that. We it. boy, we yes, bought

We on try and challenges TV we in to of I into campaigns shifts think that energize we've of us. market great it. forth the you put had are you're said fundamental having the out success non-hormonal We some different money to gotten kind some some where at today. lot a to so a return for some market. that IUD that, put causing on But marketing there advertising not ton, that, asset. get and There's a really

especially their women that wellness with kind fact and forth. IUD the it's they as And were into the gynecologists ease, get has options, hurt seeing control increased PARAGARD. market, You're as the pre-COVID for availability of improved. happened, first birth lot and or as pills, a annual combined that not if control control that's much has go so exams the will, you hurt to birth of It's

like does mean So a marketplace, good long-term else kind the in of healthcare always terms we'll evaluate women's But of in okay franchise. like do always terms our right? fit product. It's our we strategic that I everything It do planning. in we're that that's of we evaluating a right just now. decent

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

percent next sort 'XX, be the is might quarters fiscal Where roughly you sales Great. it, I some investments fiscal the that if top we Really does a in into our CSI? remain Is look And 'XX? OpEx that sales, beat, I exiting to center I investments. of and bit call little you as are made? relative Brian, that fiscal for of at the as think quarter, you of despite those think lap up of on year. And of sort couple good until recapturing but them, bps OpEx line being mentioned a CVI, front have about sort think can hot leverage of from 'XX, a XXX last percent just you estimate.

Yes. along OpEx gross mean expected dollars I'd we question. Yes. OpEx results. say operating in with came and our Thanks, margin kind of I Jon. our Good total kind where of -- the

I of we launches including in I product of regions continued remarks. challenges we includes competencies and I'll that that the We in then just mean, various We in the expected year-over-year, invest mention still marketing Pac. have of lastly, had commercial Asia also in puts fertility kind and mentioned we have I'd operating more the continue distribution driving that our inefficiencies But like And prepared expansion. is when the revenues margin strain of And like at those I've here, higher, working last we're OpEx, midpoint again, around And again before on in call, through on of the say distribution. our OI constant constant it drive to expected, we're and sort and we rollouts our that higher and continue were XX%. margin say where expecting but currency to to guide, that revenue investments, it building growth activities, focus and tied the I'll total operating out said his our sales challenges. landed real currency

P&L. part year, and long as we're putting as large driven So this we're expansion, then expansion, in a from margin margin leveraged operating in that's up that driving gross

goal And so for this that's year. the

gears but think Japan, take sort and -- business to headline But noise, to it. of you're late. one shift I I to ask the APAC, want of lot enough. know you. Got opportunity be you the maybe there's China, of might seeing this you're I what overweighted a slope in for just news. to been within Fair with And of just the

seeing your And you're and in of thoughts the to May timeframe? so ground get just the to on sort what April on love

Because if will, you seen We've regular comes China, a lens some but that and retail different a have I hospital. the the you bit. improving our When our we've two Yes. at some through the And kind China Ortho-K it little is channel. we've Sure. have myopia also seen contact management you which improvements results. MiSight side, there, probably of mean, some look which goes perspective, on it's now and lot but of from business even side, traction in different stories, That's then seen gets you a sold right?

little some that the seeing think in Ortho-K help to which and So bit hospital that us channel, I a in improvements on do we're MiSight. is actually going channel,

kind The other bit. if little of comes the goes side, the retail, and a you general population, will,

Now market having pretty competitors bigger shares in said what that, mean, -- have. we of I than that's Jon, some for our much China have are us. small remember, a

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

you bit. estimate is Ron field in the MiSight is being on versus What with about positioned will your And how about bit how wanted SightGlass be thinking for the ask the approval for a Steve. I to guys This for little are you field now, a in SightGlass it? timing?

Yes.

SightGlass update that data regulatory So to waiting on approval it four-year to comes and no receive real step. then final the when take and compile here, next

from that So nothing really to add perspective.

product. know, world, in got joint great the doing it's many it's that partnership the we've venture you and well. a been itself. the with As has selling launched EssilorLuxottica within That's product on around And markets and

venture, not continue the I long in that that or gains below optimistic losses term. about line. So that really But than investment be joint within is activity, our to product P&L the other

going getting myopia how a nothing that do me, market. mean, positive to looks, people comes I myopia into to and be to control to They be but We control. need it want MiSight the product. When the are glasses wearing for

let's wearing a Certainly, get glasses. to as X, become X So really to to Compliance who they those compliance X, children that you're as important they need get XX. want moving going at is into to lenses. teenagers, do and contact children say lot anyone X, as certainly control, an be to be has issue, myopia X,

positive MiSight, us, the So do industry. market for drive a forward positive we anything the it control to and increase, myopia positive for for can that is

have that. really helpful. And That's a follow-up guess on I I

end? You the shift what for bit? say China on you Can myopia the quarter. headwinds was little a guys the like of What end myopia of on mentioned a the headwind towards been the in China that are towards kind because abating changed has

It's sold those channel. Yes. the really through hospital are products

kind of you and so if the open need of, to up more will, and So children for hospitals you have availability kind forth.

normal to need traditional, a hospital environment You to back within transition more China.

the in getting with to into right for get opening what and you're the rear mirror and As going seeing for starts right? now, helping forth, and the view space that's traditional COVID back patients optometry think needs we're that's hospital some I more up fittings. you're so So

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

to just maybe you a feel fertility if you saying me, are we that out, is I of just curious maybe the hinted and forward? by for you how how Cook bone zooming one pathway the how on fertility some You could region, if to close, hypothetically bit critical Amazing. Two is say left I'm a meat committed that. please. as you region? for doesn't growing just put the accelerated little guess going the side, first APAC to on about

region, invest a That's that we That good are really question. is and in an important Yes. going region. to

there. So we to are we're invest right now to continue going --

rates. region. primary of One I a was are doing that mean Cook of there growth in strong with growth were markets, that we the really markets really, strong There's for reasons number fertility the transaction really

hire that some so the there. people, out don't infrastructure small. there's pretty need We of have build number some but region, countries presence or is Australia presence, and in we presence I solid a a So forth, a think, parts we have like where to of

in So to now. broad Because throughout the shouldn't parts portfolio activity the continue growth and Asia infrastructure Pac, at be look as able reason there's space, in you out our a and business right drive leader Europe and as we're build do in of and well our we we when right, evaluating no there. that Americas as to with

because that. matter typical opportunities, associated building at anytime company, out have which new a we the evaluate a like a you those infrastructure of the inefficiencies them look you're region that's do do thing So return with as in metrics is

and through going right that activity all the evaluating now. we're So process

and and more, relationship place, function opening first a about a the in Or selling MiSight that it with you depth the I already is the which positive that there the around more rest in isn't offering. able of unique more where offering relationship? where more in? being incremental door I it's of a such is then effect then sell MiSight interested really is Amazing. one your of halo accounts And was have to because mean

door about And MyDay with so people good where in opportunities point might optometry accounts. and just use much really the -- a a competitor has That's where MiSight and products. they it's to It's right. all and forth. competitors And more open ranges lot have our an cracked for of our conversations it's of you're offices opened like our those example good it's of the really a door number some new in the point of they're a not the Yes. There's to as able door products stronger there, gotten our toric because a and continuing we're about us. sudden, extended into to and open products

where some So the terms where in more I discount would they of products. go and the and they can with there virgin of advancements are product, do of you're not think right, get comfortable there of existing start I on, kind see an in But accounts finally spot stores, our importance innovative selling core going some and kind we technology with we're will, in can Cooper you if Cooper. of

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

mean talked PARAGARD. is with pricing driver some growth, Or and to seeing really longer-term Maybe expectation about the you is I'll the time? of and you growth comments growth think key volume over dynamics, flat do starting can volume long I this return of a more ask market term? over kind I CooperSurgical, flat heard on two volume about the PARAGARD of the

me here flat. volume upon to define going be is how long the years My coming that gut certainly for tells term, depending you but

the ease when I there, side. for are those are volumes PARAGARD are additional availability I other of that the out of there little offerings here. to and birth the But flat on the you a availability at going and market while control IUDs look the you -- the out hormonal think when at look now think be offerings, for

and new of opportunity for is much you're kind novo like clinic of to is fertility, what size way trends fertility seeing clinics it. how how -- you And terms of big that And in by de up openings, Got driven opening any you then to I an Okay. guys? there? in just on wanted hear fertility growth of

is you Yes. outside of of kind U.S., will. the clinics new if a The phenomena fertility

seeing more some of definitely in Europe. Asia and You're some Pac parts of that activity of

consistent we aren't growth our they're of numbers sales. new kind that clinics. huge enough capital fertility of continue The of seeing the end in You're that see opening equipment drive big day, some in to but the of to because

can Anytime part get of capital great in. a that's business. you obviously, equipment And our

consumables the afterwards. following got You've

hasn't to even of at So clinics consistent COVID, it it in I'm or up. spike not four we I've probably the been because were for a or five sure it been terms anything. last through here seeing open continuing It's years, looked new quantifying

new X% to I saying the upper within of obviously, something years. that more been pace five for keep fertility clinics similar So is that XX%, probably by like I but of it's that opening. to clinics answer industry, end the And a very guess years I the next seeing continue would Embedded number probably we've towards would the five envision I grown open talking at that, over the fertility new or certainly. last about

with of question last Anthony comes Mizuho. Petrone line from Your the today

to -- resolution. Cook. a still there. maybe it, it sounds I certainly another on efforts wanted Just a missed if just just there's lower Apologies But is follow-up the it's like had find probability call but

CooperSurgical was where just can does it bit $XXX for scenario not little just go under close? a thoughts on not this process there here an probability And million and if on M&A does where the and a maybe So activity sits from close, close. deal commitment where maybe

Sure.

to probably did not this original on would August. That of accrued beginning the frankly, get it that for transaction is at it's a We the happen. the to So yes, that paid Cook. quick P&L going under the we discussed scenario $XX just take recap because million million hit $XX quarter we

we today. So with transaction where that that's sit

You're exactly right.

We are talking with Cook.

a great of relationship or a people great there. have group We

we million. to But with if we'll the I to transaction, conversations there's could pay with see do. some is still say respect to them $XX So that that would have we continue transaction that that certainly likelihood

accretive that on you -- what focus similar the now, going to number, the will, well at is that to going over transaction. look committed strategic, nothing at CooperSurgical down we debt that if if They You're Right acquisitions with right? into fit CooperVision, what will paying either. sense. and kind at was million capital the that big look there's it's We're they right, very to of want been to couple some we last years. acquisitions a focus, wrong $XXX make to probably down continue, debt. But of paying be accomplish or got it We're

This concludes the Al closing the session question-and-answer to back I'll for for today. turn call remarks.

joining today. for everyone, We the you, thank and you, Thank time. Great. appreciate

As after I good and well a together look pretty things where proud so had this forward quarter. off in we're we quarter our three and getting And we're quarter, at. positioned. everyone well we're again We of starting are months mentioned, updating next to

So thanks again.

This concludes call. today's conference

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