The Cooper Companies(COO) - 2025 Q1 - Quarterly Report

Sales Performance - CooperVision's net sales for the three months ended January 31, 2025, reached $646.1 million, a 4$621.5 million in the same period of 2024[90]. - Toric and multifocal lenses generated $319.4 million in sales, reflecting a 7$297.3 million in the prior year, while spherical lenses saw a 1% increase to $326.7 million from$324.2 million[90]. - Net sales in the Americas increased by 7% to $270.9 million, while EMEA sales grew by 3$246.5 million; however, Asia Pacific sales decreased by 2% to $128.7 million[94]. - CooperSurgical's net sales for the same period totaled$318.6 million, a 3% increase from $310.1 million, driven by growth in office and surgical offerings and fertility services[99]. - Office and surgical net sales rose by 4$198.9 million, primarily due to increased sales of Paragard contraceptive devices and the acquisition of obp Surgical[99]. - Fertility net sales increased by 1% to $119.7 million, attributed to higher revenue from gamete services and genetic testing, despite a decline in consumable products[99]. Financial Metrics - The overall growth in net sales was partially offset by unfavorable foreign exchange rate fluctuations, impacting CooperVision by approximately$14.7 million and CooperSurgical by about $3.3 million[92][100]. - Consolidated gross margin increased to 68$229.9 million, a 4% increase from $220.8 million in the prior year, maintaining 36$22.5 million, primarily due to myopia management programs[105]. - CooperVision's operating income increased by 19% to $183.9 million, representing 28$154.8 million or 25% of net sales in the previous year[109]. - Interest expense decreased by 13% to $26.0 million for the three months ended January 31, 2025, down from$29.9 million in the same period of 2024, due to lower interest rates and debt balances[112]. - Working capital increased to $987.4 million as of January 31, 2025, compared to$928.7 million as of October 31, 2024, primarily due to a decrease in accounts payable and an increase in inventories[118]. - Cash provided by operating activities increased to $190.6 million for the three months ended January 31, 2025, compared to$122.7 million in the same period of 2024[119]. - Cash used in investing activities decreased significantly to $(96.8) million in the first three months of fiscal 2025, down from$(324.1) million in the same period of fiscal 2024, primarily due to the absence of the Cook Medical acquisition payment[121]. - As of January 31, 2025, the company had $1,305.1 million available under its credit facilities, with total outstanding borrowings of$2,490.2 million[123]. - The effective tax rate decreased slightly to 32.0% for the three months ended January 31, 2025, from 32.4% in the same period of 2024, due to changes in unrecognized tax benefits[115]. Strategic Focus - CooperVision continues to focus on expanding its market presence with new products and technologies, including the FDA-approved MiSight 1 day lens for myopia management in children[80]. - The company remains optimistic about long-term growth prospects in the contact lens and healthcare markets, despite facing significant risks from global economic conditions and supply chain disruptions[79]. - CooperVision's strategy includes enhancing its silicone hydrogel product offerings and increasing penetration in existing and emerging markets through acquisitions[81].