The Cooper Companies, Inc. (COO) 5 Dec 242024 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Cooper Companies Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions]

And I would now like to turn the conference over to Kim Duncan, Vice President of Investor Relations and Risk Management.

begin. may You

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

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

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

other expectations, Before we contain remind income, statements, and and revenues, including to rate, forward-looking and expectations expense, tax this for operating and product demand. that economic acquisitions, begin, you I'd financial FX initiatives, operational market and launches EPS, strategic trends like will conference guidance interest collaborations call and and

statements are Forward-looking may and subject that to methods risks data on depend and or imprecise be incorrect or uncertainties. assumptions,

future materially set in to filings, that of XX-Q which actions are Form described Events Forward-Looking available the that coopercos.com. results the all are XX-K from of and statements our are described in our could differ at in forth forward-looking website under earnings release on Statements caption SEC cause our today's and filings, Cooper's those company including Form actual

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

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

reporting on earnings. a fantastic by revenues. with earnings with and Within QX quarterly $X.X closed record call. record tremendous congratulating non-GAAP revenues including revenues and fiscal to XXXX. this, Kim, you, our drove like I'd today's record CooperSurgical was CooperVision Thank to both welcome, margins year billion, of record improving all-time also This that everyone, start a employees and

innovative on focus products capacity, and our in XXXX strategic our state-of-the-art investing with increasing on We've our including entered taking expanding new a priorities, technology and executing our profitability manufacturing share, now launching and fiscal products, of our driving developing availability investments, people. optimizing the

into getting on and high-level QX XXXX. fiscal provide me comments details, some Before let the

CooperVision led led silicone dailies at than PARAGARD a softness end and expected. quarter, offset by by torics had the main had unexpected a of QX, being by full of in multifocals, growth For suite solid in in with double-digit fertility, also solid hydrogel quarter. strength QX, our decline and a CooperSurgical offset the greater the

or driving with our -- sorry, strong investment improved I'm P&L prior and activity earnings QX Our margin growth. improvements

X% X.X%. to XXXX, us ongoing around a Moving of coming lens constant to market Price and, taking us, the in X% variety with myopia from with dailies to into fiscal the inflation, the share contact items, growth we X/X should including in in growing rest wearers growing and offset forecast torics growth growth, management. trade-up currency supporting for the of multifocals, in X.X% growth

remainder of For mid-single in low business growth reporting the the fertility single-digit the we with CooperSurgical, high growth and posting organic growth. single-digit digits expect

share CooperSurgical share earnings organically, growing X% $X.XXX $XXX X% up details. our $XXX of by strength or revenues XX% portfolio. X% Non-GAAP year-over-year to or led fertility organically. Consolidated throughout billion, per or or of reported including were product quarterly quarterly up X% to organically. posted QX Moving up XX% up revenues grew XX% million, revenues million, up organically, CooperVision $X.XX. XX% XX% market-leading significant taking

data remaining our very lens extended For #X new as world the in the CooperVision, wearers company with our we position in of healthy. contact terms fit

dailies, basis, and revenue X%, with Asia Pac, strength EMEA, by a torics driven multifocals in X%. on XX%; growing share and the gained also We Americas

hydrogel silicone spheres myopia management and torics our our with Avaira our daily categories, clariti and XX% silicone X%, multifocals hydrogel up business grew grew X% X% and lenses and Within grew FRP and X%. Biofinity lenses, grew grew MyDay modalities, and MiSight Within XX%.

particular, to forward our lifestyle daily MyDay an the in growth and led specifically U.S., with it. of lens multifocals. great digital across MyDay love hydrogel MyDay, hydrogel boost its patients full Energys premium technology Turning We the In way Energys today's innovative growth that and drove continuing. lenses. quarter. digital silicone torics posted daily another designed trend portfolio look we to offers spheres, for and strong silicone

continues in with advanced range. design, very toric multifocal system that across Meanwhile, North nicely or levels combination resulted America success high an paired MyDay with our has pairs do fit industry-leading Europe parameter including its a performing XX% And unique expansion well with rate less. easy satisfaction its is in and and SKU our to MyDay design an market-leading X of fitting

products, remains improving For expand and strong allow is capacity to all as demand these availability. the future bright us will

the upgraded during lenses and year. clariti strength multifocal momentum of easy known affordability, and their upgrading material. our the be into the are is and lens launch Moving which and comfort, wearers. is rest this seen hydrogel design fitting brings of This another the we'll wearers being in received U.S., our multifocal, highly also world to These quarter. MyDay launching the it We've resulting well this successful around had for handling new We legacy clariti. with in in solid

of these Speaking personal multifocals Both are experience. terrific products. from

multifocal lenses If you're yet, missing contact presbyopic and out. you're not wearing

XXs, then vision visual didn't got into and changer. until me, been reaching For crisp clear a Getting without for any need reading glasses has hit I correction me. it game I my

several offer happy choose that really from. So to I'm now outstanding multifocals we

Moving had Biofinity QX. to another and lenses. silicone in frequent Avaira quarter hydrogel strong replacement our

lens to see our both products. and have innovative especially platforms to market-leading consistent these with from and designs franchises manufacturing an moat, growth extended continue made-to-order effective and created of We ranges respect

We continue this performance our momentum. expect to given

seeing Regardless, around being strong around said, did contraction quarter, results. that grow comfortable that depressed positive That world, remain we it will trends to similar and myopia XXXX, in momentum. MiSight U.S. revenue fiscal to in given the the XX% this activity we're benefiting October remained fitting fitting from what second MiSight year. was highest the inventory October Moving back-to-school management. in ever, month our

Regarding national concluded the and fit successful These myopia campaigns media benefits very resulted MiSight. about and a markets, significant in proactive Pacific campaigns activity. the parents were in educating in of being and treatment. Asia We of U.S. targeted children number just

management We and Pediatric evidence in also Korea, Korean gold Pacific showcased clinical clinical scientific in Ophthalmology annual with Myopia insights the International symposium Asia our at Association and standard on extensive interventions. the Conference global leadership of at myopia deliver China partnering to XXXX our

Optometric U.S., momentum, media gain collective seminars our the Association the creating visibility and through to considerable myopia In partnership continues at interviews, conferences. presentations American with

revenues activity, CooperSurgical. of We to consumables, or to services, genetic forward million, donor be up million, leading Moving Within driven equipment, testing X% posted organically. products or innovative by $XXX up and reported XX% including capital we're to up our revenues reproductive Fertility portfolio drive fertility and XX% portfolio up this, our $XXX continues continuing and XX% of of innovation. organically. quarterly with

This and the at capabilities. Medicine was Conference, presentations meetings American leading highlighted recent which genomics Society our Reproductive on of featured

offering healthy detect the improve baby. having suite an insights that on were excited in to and testing the likelihood company we intelligence variations fertility of present forefront our build DNA will learning the level, to to embryo a at updates machine methods, of statistical being providing As genetic tests artificial developed further

professionals We and trained a for Society lab, technologists embryology need of and Reproductive the program also newly in growing groundbreaking fertility national training its clinical with the a highly ASRM formed more collaboration space. for announced learning biologists a first support kind for to the

due strong by The X and childbirth, the awareness, estimates factors. World The expand, in Health technology. macro These improving X Regarding a to trends. their worldwide women global benefits coverage treatment, of fertility Organization broader continues driven that include industry. to increasing underlying point some patient to infertility will growth at variety access experience improving in people health market delaying increasing lives

this is a industry So potential. growth that offers significant long-term large

leader a addressing and committed deeply critical by space, remain improving the birth access rates. driving clinics of innovation, As care in challenges to supporting to global and declining the we patients

geographically continuing most be the focus Our into providing products we'll XXXX, efforts. expanding is new advancing R&D and solutions where training, advanced and offering services, extensive clinical on launching our

We driven million, of Cook the assets strategic the year Office by beginning successful the obp and more acquisitions certain to $XXX posted Medical year-over-year, Surgical. of sales XX% and at Surgical. up of Moving recently,

were surgical deals, organically. sales office flat and these Excluding

offset Our uteri delivered Ally we from by birth invasive solid minimally weaker Medical manipulator portfolio XX% Devices which was control and was than in a delivery our led as decline labor feel by gynecological growth other our the pressure products, options. to surgical expected this continue as but such our portfolio of Paragard, in devices

trajectory. to diversified expect system portfolio that coming with year leverage revenue successful year work. reap growth prior of growth new in We as puts benefits investment better integration our products, system, a some upgrade our launch wrap With To margin solid is and but IT this we products and services, activity our CooperSurgical. of and the our improvements and great of we continue had now much up position this the us U.S. QX stable challenges

made We over was record the and this turn significant to expansion, I advancements our Before operational year in and capacity Brian, for revenues improvements great throughout development. investing call reported organization, a Cooper. employee say let me

reporting to objectives enter long-range on to we forward continuing we're year. fiscal our strategic execute looking As XXXX, and strong another

call the over with to Brian. And turn that, I'll

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

was up from fourth by negative and XX.X% up as efficiency fiscal gains, well, For quarter, billion, and margin revenues. Operating only up currency. were driven gross and of managed reported the up $X.XXX by offset consolidated revenues X.X% XX.X%, primarily to XX% of reducing were expenses impact X% Consolidated XX.X% price organically. the

see investment up Below $XX.X improving off. by was the tax million, as income led option leverage to CooperVision strong leverage. and both rate to SG&A lower expected XX.X%, our XX.X% income, to interest continuing stock was at Consolidated expense prior at and activity exercises. effective was XX.X%, operating CooperSurgical operating due margin than the We're pays

outstanding. Non-GAAP was billion $XXX cash quarter to $X.XX million expected to with Net as for FX, debt in million. EPS with was negative CapEx the to of was average guidance. it our $X.XX, XXX flow dropping leverage with million Free shares our decreased respect ratio bank-defined roughly $X.XX X.XXx. QX With $XXX

billion, CooperSurgical, of $X.X This delivered organically. and results, at guidance range up the of our X% our at CooperVision, revenues X% full the high Regarding we initial X% of X% range. growth for was at included initial was year up organic which which and revenue guidance record end middle

with fertility. year particular excellent strength silicone in an daily was hydrogels This and

investments. XX by basis basis leveraging improved points, P&L, points momentum, gross Gross the SG&A operating margin points. our improved expanded our SG&A and stronger delivering and we XXX Within margins XX basis margin continued

end gains top our talked of XX% grew the income grew hit which XX%, XX%. initial of guidance commitment exceeded of XX% constant top in Operating and in to XXXX. and initial our EPS driving end currency, efficiency which the XX% growth, to We've we EPS and delivered XX%, guidance our of about to

Moving organically, basis, this to to $X.XXX to $X.XXX X.X% $X.XXX translates to fiscal XXXX up revenues X% of up billion, guidance $X.XXX to $X.XX $X.XXX range CooperSurgical, range guidance for revenue X% to million organically. billion the X% roughly billion On is CooperVision. is to billion, The organically. for X% consolidated to up billion, X.X% and a

fiscal operating roughly expect matches translate which gross help Moving earnings commentary XX% closed currency from past production the improving income our strong down guidance perspective year and call. should XX% We constant our to a deliver to last from which this growth, margins, to this P&L.

rate the reduce to prioritized roughly by expect $XX Fed, free with to expense interest flow be cash changes we no debt. improving Assuming being interest million

be to over We expect year slightly non-GAAP to of range $X.XX EPS and expect in the full tax XX% the rate effective $X.XX.

For roughly revenues expecting to a X.X% X% we're of headwind and roughly to currency, earnings.

on exceeded me market-leading and by in operational XXXX. leveraged capacity, expect and delivering for revenue great that products the as we let remain that We're conclude we strong set improving perspective we again that, fiscal to work we'll saying a in position with and P&L. fiscal a hard performance XXXX, focused or do more met With we a expectations from

and objectives production This expansion margin in for levels, gross with our and price and increases positions management support Within leadership expansion. from launches projects, includes we'll higher to expanding myopia financial drive still product this, reduction helping our new invest margin operating fertility. cost balancing

will questions. I back the hand now And for it operator to

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

was unexpected from color clarification on just that of softness to I softness and a that wanted you hoping comment start well? the provide maybe end with the a and as of where -- the on little And is can a bit at geographic that. -- that quarter, more perspective

frankly, put that at where softness Yes, end and in hard of had into we as softness little the here. with pretty It's kind was no world mid-October Sure. we softness were November Sure, pockets quarter softness market, hurricanes saw over U.S. because good on year. some a from Craig. And like your We here. running along of activity, were coming around some some other a beginning to a the something doubt. carrying or China the saw some to few there finger some an other And saw whether the then example. with but the

here. kind stopped worked bit, for and seen we've November into has but to of move way As kind I of a its mentioned, it little back things normal it then

of like So month a was kind softness unexpected. which there, of

the guide. follow up could Okay. helpful. That's I maybe And on if CVI

to this X.X% guided you're it's basis XX X%. the X% Obviously, year, points X So less. years, X.X% last to you've

still said and you it market X% X% you well. year, your I think what as think to I year I last expectations next think said that's the -- was for are

So in maybe concern can that? just take. bit Any share a What's on color the of little the level you about reflected lower more guide.

understand kind of previously? done the you've of guide slightly lower Just want dynamics what than to the

Sure. comparing at going I we're wouldn't grow perspective too to X% read than from continue into think of when little slower. look to faster Yes, much bit The X% to me, a prior is to that Like years. I market. it the the I to

year, bit grew we least in how the then for X% it This and I quarter and for year, first little the us. I a think calendar market going X%. was in current that then X% higher. out thinking We'll at last see came forward plays

MyDay I guidance, a the And We're growth fair when for our to think, X.X% still exceeds where I X.X%, demand situation look our to a manufacturing capacity. at in way year. start is the

the that. doing have we're able we meet efforts in new now. right to well so bringing demand So advancing We're lines those and all forth, not We're we're on. but that

would hold of bit. little that just would of one be a So things the kind that back us

as year I we're lines us bring continue make we advancements, think to It certainly about and to position so 'XX fiscal forth as well we're we going will and -- to know think on continue move on. this I and to going 'XX. make through

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

a had the and Paragard, Talk what about. in competition QX and Maybe color And assuming and fiscal pressure little on the follow-up. standpoint talked more a bit first 'XX question for a you're that on decline XX% I you growth about one -- from Paragard for standpoint?

Yes.

grew the So I came were softer to, of was were end in we thinking the which was probably XX% what going day. Paragard for quarter. than at in we We to X% year, pretty this the down similar thinking

a now that in for think we're we're year. see to now. you while that I've at market talked going when pressure right about perspective. And you to see to I competitive out at think next I there, a products look the unit to Paragard continue and continue look from going And

will it a Now bounce like does around Paragard. quarter each bit little for individual

be a bit. bit So think 'XX, when to look at I it's to I up fiscal little down a little maybe going

We competitive anything side things. new haven't heard the on of

down if a does approved, about Paragard So that a is for think probably so I range depend to best up kind to forth. to of bit product about 'XX bit how think will it it. in competitive launches little and when the But a think way and it fiscal get little

fiscal color And and helpful. Brian, QX. of on 'XX. margins any sales any cadence And color in That's on

mean the anything. of you seasonality really know QX. than and you I tend really Larry, QX QX QX highlight lighter closely, us to be follow about thanks much Honestly, for all of and I and wouldn't the question.

the I XXXX just So 'XX way to in you've past. seen about would think modeling the of similar and kind it

And line the Baird. question Johnson from your of with next comes Jeffrey

reduction in first November. reduction. F you just channel how on market the and kind And the than to MiSight the the maybe that drove want that quantify factors, the of couple market, weighed into of of I what inventory were then correction much inventory QX any Is those Al, in confirm that seeing in there? different MiSight different weeks to assuming that softness lightness are way October just

Yes.

to without So growth similar normal pretty MiSight have rates would its been that.

QX we thought. buy-in seeing think strong ended you quite quite clearly kind out not QX we fiscal saw that in So QX I we is like what in up thought. and wasn't some of fiscal meaning as some as was QX, of as weak level itself of kind as

than want itself, -- softer there was different but I right? it being was some don't a Like the of saw. it The -- dramatic, act was itself marketplace wasn't Then marketplace sudden than that, like all we right. big you're think oddly to enough thing, I

in that once it, a Now bit this but happen where markets. while. a impacts for doesn't where every it we I couple little It see usually quarter about quarter of the in a it did talk

-- again, ran kind So to through it happened here. bit, things it normal mean, of little back a and I and we've but return seen

it things that. just think any a something kind continuation some people like of tightening But that for I was were where even blip down. was that there's maybe some little of reason. inventory indicates there's feels that nothing that So some And or

little not bit there, and look market quarter, of have I and you. and end in Okay. third then Bausch, in that's U.S. know on didn't and double-digit of their comment I up guess about pushing I No, October J&J they it's overlap, If And have a kind obviously. they fair. what that both just at growth calendar put a there the kind perfect

just little good coming a lot getting out bit of a in of is market that. U.S. the or think more there's products from manufacturers I new look, lots But competitive

the guiding level managing market guess, confidence your X.X% that the that basis being about, -- by good important the to maintain good you're how business points think to a you're or And on of or it I couple market you that's X.X% you to, is hundred XXXX? X -- enough? point a a in how market, So you're just to if are beat above the to trying market it, above is if

Yes.

points. X% QX, grew points Is and grew we that, all I look calendar couple of think right. a at fair that question, market I the in QX, calendar on if and Good X%.

calendar much October by a you roll you quarter, right, a our little at see a performance a our of the look against get month, start see month, that's difference. like to I in and for But when you it I a when pick competitors. really didn't difference you of impact So drop fiscal bit of and where up October,

Now October. I what did in don't know obviously, our competitors

to of faster I And grow and will on be little are that comment some But see happening the But MyDay. be some think that so because market. will take a to franchise, of then a end that day, no, products because market. myopia I the dailies some date. good that of We're going share. of in the bit with later change. we're at able to competitive MiSight or management, are be don't the than our And the space of we'll there continue what's to entering going that at that

I probably increases forth. market, gut to conservative probably to to year, gut drive I what not the now hit And like about like being on look little gains. at in appropriate prudent X% and grow I to our to me, have good I trying price my is mean try I market But range. the do look market, at expectations think tells of the so short-term we we're right take or moves doing going I -- and order think my think me market anything share than strange conservative X% market. a we're a number, little some a particular an that guidance. tells mean we we're I and then faster at right, beginning we'll wouldn't to when set and any we're talk the to when

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

numbers you longer that going MyDay. start just supply needs back rate little And I'll that just follow-up. the sort a a half? to steadily you growth color around just point sole in as fiscal 'XX, Al, changes be? to where anticipated. on XX%, to any of the like just cut kind APAC sort taking any of culprit think that, feel right APAC And you we that 'XX, And to of saw bit will 'XX, 'XX, then I get in that landscape in to point the more to was in of on would XX% that than I sort well? to as when would to had might competitive it modest be Or

be that's capacity. region Sure. about my question not Yes, a APAC most regions, There's the out X sufficient probably is definitely impacted That day. tied negatively one to of by the MyDay having -- no that. would

So improves, capacity add there. strengthen continue think to there. you'll Pac to as going capacity region I We're see the Asia

be to new to continue Fit with by We challenged, honest you, be data.

activity in to continuing see strong new fit we're MyDay, we keep adding capacity. and So

adding investing able right it that to in and think through we're up to capacity year there. going up, good you enough meet work our the spot catching year, into can numbers by next a and this and as we're in catching be we're out being see we demand and CapEx I now,

where line a It order in journey, a an something and next in Because line to a years ordered it production. for you take industry day. full it's still isn't or can right? can and get get the it have But this X.X

time. what's taking that's So

Okay. follow-up, multifocals, Helpful. CVI. I'll torics think to I And was up The X%. X%. was up from that overall a And like then CVI delta maybe and just stick as

the one of overall the the and So specialty I X, certainly that tightest but can of healthy between sort it numbers, call remember spreads both it's CVI.

multifocal toric anything to competitive landscape, dynamic? that or new that on you'd anything changes the there there is So entrants and point

Multifocal's much. too about Not no strong, doubt that.

MyDay little be be inventory like, that trying build bit we're me. that those I forth and in to in okay, you'd that's think the may with respect marketplace locations. to we some some so a in some one if to Toric's makes broke to sense out, product get additional out just the different

of So take is I too that's out it Probably that. the marketplace. us more much than wouldn't

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

for and that the on ask margins, out been on to fiscal be margin saw reported a we into nice And particularly you've with focus said we we I thinking in Wanted 'XX. margin numbers operating fourth here P&L play about know a talking gross and in And How lot know 'XX, 'XX? gross upside. operating and should reported a that I margin in improving margin have to for about XX% XX% I you XX? do income then follow-up. growth. translate How quarter hard

that. I'd I'll question. business, mean Thanks putting the a been for that yes, Robbie, are we've executing the from high Yes. the investments We're at I into leverage paying level. we off. seeing take say

You saw in that out 'XX. play

as would gross I than that ago probably today think I I sit we expansion. a here a see was I'm margin more today, year confident bit

intercompany raising We're we're productivity going shipping, driving our expansion confidence better We're this manufacturing, got the lot year. a within I've see freight but getting and we're to prices. help of that costs out that margin gross successes the

XX% So also expansion, constant XX% to to to our and also being that. leverage while to margin our balance committed ability will efficiencies. I P&L investment we're currency think OI drive those And growth, that out that activity, the committed operating

to future and future drive business the so returns. growth in sure investments invest get this And to we want make we

year, goal got a So in to balance on certainly, it bit shots a drive this we've be but XXXX. will of leverage

the reported And numbers, how gross any a on operating and think color we about basis? reported on margins

as kind with from guidance FX based to that where what unfortunately, the ago to operating in today. guidance has shared year-over-year the other were up are margins going on even we But be implied we months Well, the of X given, turned we've that direction. today -- reported

as the your with sold Okay. anyone's at And there guess in incoming the to what how help happen will of manufacturing manufactured exposure. plants Should a the just And U.S.? product U.S. have tariffs. think a know inside much point, lot of this be administration understand and you I as Maybe and put actually the outside outside I of then your follow-up, it's tariffs us is place? U.S.

Yes. places hard about on administration speculate out and like Canada, the happens in I don't there's like have we manufacturing China, based the to Mexico to companies lot of and But news happy it's that's on those a and countries. of that change. mean -- report with are concern there, in it want that seems what manufacturing no I any

So manufacturing places, it's a what number knowing of in the sort around different markets and to down, administration says serve new without we've the different going got speculate. But come world. of it's to how hard they and really

And your Chris of the Pasquale line from comes next question Nephron. with

feels pre-pandemic pricing just was you're like hoping on it environment the come the pricing improved Al, was the And sticking. but it I of contact is down. seeing comment is sustainability you could environment it's in lenses. Inflation not where quite

'XX, that look you are you continue? at trend as that, So will confident FY

Yes.

think the of I right inflation. the impact will a where that market offset contact now we're lens in industry

with inflation see like something out X.X%, we'll look at I we pricing see So that, if somewhere X%, increases. you'll think come where our that. our But being offset around competitors price

belief the is upon my inflationary industry at where will and the pricing much along those is, on I that and products a but next it we'll think now is where that where depending so position see that future, pass speculate pressures. have probably is too pretty frankly, you'll itself chance won't pricing I year, where inflation year. So forth, kind good are this a you I of and see think

revenue, contribution That's it helpful. And of make to want about just before sort organic the from base. particularly I of thinking the becomes acquired sure as we're part

next bit see active? done. And Cook thinking FY expect about the little to you just few million lapped are will environment M&A recent heading you guys now, annualized about the from then to over in that we've that we But deals a you talk should more think be in I so quarters? be out revenue that coming have right continue maybe into the 'XX. $XX be Do

-- that XX% up that $XX to had up right. was million nice. nicely. or number bought grew that Yes. I mean something And been pretty really like obp, we It which has I we ZyMot like mean it. close is since

XX%, I XX% or something since us we think made bought that.

So a is really right I the deals, performing couple now, It's quiet. for smaller of us, quiet. really environment say would well. really but

integrate did for deals really of us. a It's to well couple So We're out we worked there. good continuing those.

We if it's so okay, along, those Right continue deals. we too. And come quiet. to finish be they to there, pretty activity now, perform other have some it. have that's integration If don't, out on deals then

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

Al, I as we earlier, we think, a those price you contemplate that of just didn't as I you thought communicated as talk occurs X. softness were which would institute revenue when price November early out Can guess maybe I have the in that October. discussing normal, normally maybe limited did come activity that increase effect, some saw took I increases? you communication about pre-buying the that

activity So off fourth influence influence quarter. totally buying price contact maybe trying your increases didn't what I'm lens base, understand in extent to to just or but

throughout that that's a place we put in kind Because question, I in of Jason, around asked that same the right? quarter first good the the world. question. price go increases

and times so different at geographies forth. by and products different different So amounts

there year. increases, this of especially I fair hard was of it and or the to it's question than say, was since was different because So price to due was that's last timing an whether the it to was But due that." as a triangulate pretty "Oh, impact it slightly back to some think

helpful. Okay. right. That's All

us the what's outset You for? capacity, Maybe of Because on that to very coming seems could you prepared piece, just like the the look products. on manufacturing months the launches. couple latter over first of remarks, competition XX Jeff up of launching help here docket? if mentioned pace of your respective a at kind we What's part your pipeline in the out next new out own can that things your XX has as their noted, picked on -- [indiscernible]

and if we're out, the one they're that thing do products to continue get think going pushed will, I And is Yes. you the around do to going that world. to

have for success been world. MyDay has love launched the Energys, when around here markets that think a about in U.S., us product in nice and additional So we'd like you to it which the get really things

I think get we'll there.

get I in multifocal, love able When MyDay be range, by get increase increase to more to a toric, do the in more expanded markets, few to markets availability that. We'll love availability. that at that a look and

associated when mean to includes I look you're going even mean, right? what Like, with anything at of. So see I almost MyDay, more that's I spheres,

to get So same we into might old, marketplace the little that MyDay world. talked sound same old around the a -- like products we've we while. it have out about still got we because have for the But

a we're think continue those And good similar them, I So very all boat competitors, you'll going to you probably I out to as in similar a pretty world." the And If launch get from they're and be get to got products. increase right? our see our I feel that something right need "Hey, proven But return We we've from to that products think product successful and good availability now. we're that. have launch. saying, them around listen some to products we

Kirby the Issie comes question And your from of Redburn Atlantic. with line next

First one piece. on the vision

with of in lens out is competitors One your coming X-day a XXXX. wear

category thoughts risks Just and your to see your any get that FRP to you on portfolio. wanted potentially

Yes.

market on in seen So I that. very any haven't early reaction the yet.

kind that mean X-week the of X-week in is. is market. think the play dailies We we're market of market. don't that's a But there which X-week I market. where the monthlies, majority is the probably really and more I still targeted

the certainly U.S. it in see here You

So out. quite are people who solutions. out, those contact I wearers wearers we'll X-day how who do linked more not will at I'm it the plays play it X-week use the much end think to and that sure but lens that will be see day, of how lens

commentary Okay. on some gains color the that's Great. And the also I growth and made there, by with outperformance you fertility on just and market, really in been can what's side, -- the administration. the supporting perhaps give what on particularly exactly the under the the incoming again, seeing you're share comment mean,

of Sure. positive IVF being a reimbursement It's about look with comments. you IVF. made Trump at has very interesting administration, the when number they've about associated incoming and

that have new like angle, seems lot us a about of have negative bad. people it's administration asked questions me it from asked a questions So is the like or

I the actually From is hearing marketplace, everything the be I've and for in that industry. would we're positive seen that argue to going

quarter areas out. that I how So different one had a we'll mean we this of plays fertility. number see from strength in

like so good were and with consumables media products Our forth.

Our genomics was new we good. the I mentioned tests some of have coming out.

that was good. So business part of our

back that the Generated old activity we donor Our acquired was acquisition, from had good. that

our a bit capital capital you'll a was depending activity. a with quarter of equipment because been than quarters how past stronger equipment. lifted This have capital mentioned And little up that some probably of in sometimes or weaker this stronger see little would little upon usual a equipment. I've be bit quarter the We are

really was by It's team. pretty board. good much quarter it sound So a fertility the just the across

your the line of And with comes Oppenheimer. question from Lichtman next Steve

questions side. couple A of on the financial

flow cash 'XX? in that 'XX. year we we've on or little thinking CapEx this the flow about today, pressure pretty on FY commentary obviously, First steady? look on up cash talked should a past you FY about put we as into given relief into Will be CapEx, bit free and be will free supply moved see How any of conversion.

for Yes, than we a higher little thanks CapEx bit question. anticipated. the the just in came Steve,

million, year under last about how is million. cash free ended is up around As $XXX just flow to around then $XXX And we going that. be CapEx we talked around

a steer probably percentage really basis. thinking people about would I on So towards CapEx

a XX%, XXXX. land think as good revenue to will think of percentage a where CapEx around of So about in if sort CapEx that's probably you place being

million. in driving I talked to prepared $XXX to about cash going is higher in $XXX neighborhood of remarks the be million free from somewhere my flow how

working little CapEx improvement. going you $XXX of better, I million cash and from that be year. and next driving think going of that operational your that's capital bit sort a is taxes free higher the will flow revenues takes Interest of but puts in neighborhood to combination bit to then expense some come and gets somewhere improvements, be FX higher, and a

ensure and capacity drives we growth, on expansion future So certainly, that the we're investing capitalize to in opportunities. the business

mentioned, follow-up on anything -- that in that margin that half, first just on And then be And One, here. two, gross of second headwind dynamic it show Great. Will headwind? up? front as Okay. some flow-through basis? see a we will on again the when where Obviously half a will where terms FX. reported of on of you

I would headwind I Yes. EPS. the through I relatively hitting X.X% and headwind quarters. evenly just to guess say revenues FX of is kind to X% mentioned us

of the quarter-to-quarter. you're kind of think EPS I fairly consistent sort So at on it from looking side,

gross we'll is it? margin where see And primarily the in side

Yes. certainly I impacted you'll of quite but revenues, goods mean cost hasn't see much, so to it.

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

asked. good already A ones lot of

my just I'll side. on ask a So question

from I about in think curious color for contribution as you the just the mentioned follow-up growth seen FY as just such in expectation I how then more U.S. you've markets? the progress a thinking international how MiSight? versus of some for Korea was that, maybe and 'XX. the any And momentum areas on U.K. to you're XX% the And being

Yes. Good question.

real market we we're them of key another the example. very other And The in with trying the of and with the those been a successful there is some start of in to some MiSight. an we're areas U.K. markets. gaining and We've bigger So working put out as like Korea Europe. where take some traction lot is learnings in accounts U.K. there,

at still the the forward. year. think I markets I I one, year. going world. number XX% is to We that and like this about day, something the other think end grow the XX%, up you'll are all The look when U.S. seeing I end of I the around think think drive grew at MiSight markets And the it we'll driven next but bigger, by

some key are traction. the some higher watch about that has the is and I the bigger past, bigger to continue started, definitely talked activity The of that in could gaining That by definitely accounts out one it's thing there. drive retailers that I've that of the it uptake

So movement there. we're getting some good positive

optimistic out, good, able bit what XX% faster be think will year. that definitely that pretty them. see be direction. Asia But be plays that one too. But I markets move of a we'll of this in I'm we'll should we'll Europe little how see to Pac So And be north and

helpful one Super just follow-up. right. then color. All And

You've Biofinity as talked bunch a Energys Energys as supporting recent quarters in well respective for their MyDay families. product growth about

as Just you have curious the bit Energys become little the about business a comment a CVI product can thinking sizable directionally how whole? lines just if

Yes, And one product as the Well, pulling I get growth unique Energys that guess, a is a product right? that Yes. true I of MyDay won't is innovation, It's that's will I doing a into well. I them, for lot competitive doing certainly, a say size reasons, very us. but highlighted forward. they're of well. for

yes, I becoming have some is market, people sometimes that innovation think of of the to more forget I'll giving numbers, tendency something I steer clear we material. like Energys. to deliver it's a MiSight but whether it will the say or But

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

in the greater had follow-up on erosion I Paragard. a

the anticipation that of entry is versus XXXX Paragard losing low growth the does guidance, competitor? the new organic also new including implant And copper low that of Nexplanon? assume So share IUD? is double-digit Or in that operating income

on also then fertility. And

base the the corporate landscape U.S., going the the growth the discuss I fertility know across government. high trends could competitive on the also touched you single-digit and that If supports forward. you benefits

points couple A there. of Sure.

growth. growth growth underlying we bit I medical again will will, little market, think the for if I the fertility mid-single-digit industry year. that mid-single-digit growth device defined play good nicely seeing this the characteristics. while On don't broadly piece I'll you been we in, maybe piece. fertility grow surprised now. see the a in pretty a the mean, market if There's be there, above We've great

reimbursement. that are And on focused I countries of on mean some you some more fertility. look there touched them reimbursement for insurance are you getting when at

there trends positive. the So are

with being always in number I being a can continue the us place think and quarters, of I a we solid, solid good of macro posted double-digit mid-single So And going digits to of digits, But upper post about that's for to be talk probably clearly single a healthy lot in that. good growth trends. underlying why a growth kind digits. that's industry-wide I mid-single good, is we market think years. And

I competitive is still going on I market, Paragard I any the mean that. U.S. approved. don't the only approved. in nonhormonal been when it IUD the get share to on IUD has here so at not space. Paragard have in details has market don't that's product look The I full When the know the

So with do that. I would performance say has of nothing to the had Paragard

little are bit other some that that are there, of a competitive than little I think they're bit of of IUDs the not do little from a out in I'm taking to the believe, better of IUD out products but a the some competitive market, hormonal from IUD general, and And that's doing a maybe entered but sure the products the worse products there there and share unit the some due some that basis. products, the softer, products that I is I probably of are other doing bit think. market out we're have marketplace.

next your with line And comes from of Li Young the Jefferies. question

worldwide. Great. health I guess of to in ask about start, the I wanted to regions consumer key the

pricing. the and sensitivity, of sizable SiHy price Any changes trade-ups, business, wide with a so label have private dailies growth? You label consumer a range downs private incremental trade adoption,

growth to we our I are products nice Certain in in continuing branded as are highlight get and products marketplace. brand there. our that growth the store -- we're similar mean to nothing

continued You're seeing were the seeing in we expensive. of the growth in dailies again. monthlies the which is the space, teens multifocals also space the and in a continued little But strength kind where in less bit you're

consistent behavior calendar our not portfolio, grew grew of lot mean, change quarter So consumer a from X%, quarter from quarter, right last seeing performance I calendar X%. pretty And now. this

of wearing consumer habits. fitting from activity a not So and lot change consumer

Very Okay. helpful.

on the just follow-up, my dynamics. For supply-demand

comes are in and a coming you the terms CapEx addition to manufacturing excess investments capacity capacity yours? in more much demand seeing doubling years, X How made online. overcapacity of competitors do balance in supply? You of own ramping their Any risk of sort capacity industry? needed some think lot Where as is an their the online still past to up as the of are for

I don't believe because shift the investing right believe everybody to dailies. so. is now of I

lot we, to more CooperVision, -- have lenses, creates to machinery, move Producing industry, a more obviously, wearers lot as a logistics. more have we It lenses. throughout as So obviously, your challenges we produce time. dailies, an more more is taking

for years to of the to to lot that's a think many, going front of dailies over capital require a lot is going of I and people. shift continue in from So us, many

forth of kind we ball think it I down expansion have we've so the this going, to had probably Now in coming it again and before in some because had line. starts and 'XX addition we've facility some

So bit we're flexibility of position of activity. kind manufacturing lines putting ourselves in into around our little and a our of expansion lot different better a with here more a some mindset

position spot the for I capacity. is day, to a dailies, while But we're I up. think of So will in the long ourselves be think to add I for you're continue catching think as into the at And here XXXX, the end kind and to better of a 'XX, industry 'XX. going have market shift as to to

point manufacturing producing is going in a the you're remembering, earlier fully into the I that you time year years X marketplace. when line, put to or the a Like Because, and to take order getting from product well it's again, you it it made ordering worth to right?

not a solution. it's So fast

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

SiHy And how mean on mix would daily And to SiHy your then CVI, that to has MiSight. growing. material business. I much Maybe And been are toric maybe and on quick hydrogel where just CVI shift the Al, margins? one time? one of on torics on have silicone MiSight. over recap daily as that torics a dailies daily on margin particular, for one SiHy accretive But in can within to what just is overall? follow-up

question. a Anthony. one. lot Boy, a good that Yes, that's to There's

pretty onion right. sphere a and of sphere talking into distribution making logistics straightforward. and sphere that a the your peeled system about kind wearer, You a and when back throughout Because marketplace your you're getting

a complex there. I toric terms As somebody has out how And range company in we're toric, it of up a world is in We and little considerably as how some that do inventory selling of aggressively out on in bit those be earlier right? the a the astigmatism launch sets it we're to get expanded and there. #X you fitting complexity. mentioned the that in lenses is. larger, I fit increases ranges trying know spots couple the to gets some mean, more toric able to more build

a growth I seeing dynamic that's to couple saying quickly of kind that I'll that it a talk So probably about summarize in just hours. try of torics. by are could for we nice

It's to in who are you if You grow. going toric. seeing a continue it and -- fit product good have fit margins. see patients us. great to It's for We're correctly will, got opticians recognize, astigmatisms

because just grow price So market do bit than I'll ourselves question. answer. good it's because you're continue and kind a faster hard point, I pause a hard answer. torics one to that's but of think It's of a little one competitors. there the the of overall to see our a for to to going And

I'll be in at years, not strength every on for you're higher. competitor their torics almost hearing surprised contact about talking getting driving and lens numbers

on That's helpful. And really just quick MiSight side.

on bit contraction. an inventory little a mentioned You

So you you But had back-to-school contraction. in strong October, then inventory had fits.

think that So just to anything you seasonal the there? that's do Or be going is pattern?

Yes.

expense distributors. a little think mean, so inventory up. seen distributors bit, and at seen and I some world We've to their right, I inventory pattern of tightened people generally kind just as just up the looking seasonal forth. everybody that's of we around interest tighten is tied cash have

their where me, that's a of product you fairly distributors inventory. matter a just So high-growth managing have to

bit of mentioning a because some that just it. And we'll see really pull like to if of you'll I And kind think I'll we little higher fluctuations on helping deal in the I a move bit, this that a try that and that. growth highlighting through a And quarter as it's MiSight of down year. with on little when that, be growth, lower transparent and little bit, think next kind we probably numbers

session. will the for Al now And closing our that to back turn conference question-and-answer White remarks. over I concludes Mr.

thank So great. you, Well, everyone.

we good fiscal which strong, try summarized always is we're the numbers, outperform and today. to to what that going fiscal we're closed obviously I able And guidance be do, strong about we're year. to 'XX was said, We good do And in we where the produce and we give. with to As confident Brian going a really at feel results really 'XX. we're

when look I quarter. through our and catching So quarter report forward we next up to the with everybody

Thank you. you, operator. Thank

you You're participation. your welcome. for thank concludes And gentlemen, ladies this and we and call, today's

disconnect. You may now