The Cooper Companies(COO) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For Q4, consolidated revenues were $1.018 billion, up 10% year-over-year or up 7% organically [12][32] - Non-GAAP earnings per share grew 19% to$ 1.04 [13] - Consolidated gross margin was 66.9%, up from 66.7% [33] - Operating income grew 16.2%, improving the margin to 25.9% [33] - Full year revenues reached $3.9 billion, up 8% and up 8% organically [36] Business Line Data and Key Metrics Changes - CooperVision reported quarterly revenues of$ 676 million, up 9% or 8% organically, driven by silicone hydrogel dailies and torics [12][36] - CooperSurgical posted quarterly revenues of $342 million, up 12% or 5% organically, with fertility growing 15% or 13% organically [12][36] - Daily silicone hydrogel lenses, MyDay and clariti, grew 14% and 8% respectively [14] Market Data and Key Metrics Changes - The contact lens market is expected to grow 5% to 7% in constant currency, with the company taking share growing 6.5% to 8.5% [11] - In the Americas, CooperVision grew 6%, EMEA grew 11%, and Asia Pac grew 7% [13] Company Strategy and Development Direction - The company aims to take market share, drive profitability, and execute strategic priorities including product availability and manufacturing capacity expansion [9] - Focus on myopia management and fertility as key growth areas [41] Management's Comments on Operating Environment and Future Outlook - Management noted unexpected softness in the U.S. market towards the end of Q4, attributed to various factors including potential weather impacts [46][47] - The company remains optimistic about growth in fiscal 2025, expecting continued demand for MyDay and MiSight products [51][130] Other Important Information - The company is committed to driving efficiency gains and EPS growth, with expectations for gross margin expansion and operating income growth of 10% to 12% in constant currency for fiscal 2025 [41][39] - The company has no manufacturing in China, Mexico, or Canada, mitigating potential tariff impacts [88] Q&A Session Summary Question: Can you provide more color on the unexpected softness at the end of the quarter? - Management noted softness in the U.S. market and some other regions like China, which was unexpected but has since returned to normal [46][47] Question: What is the outlook for PARAGARD given the 10% decline in Q4? - Management expects continued pressure on PARAGARD from competitive products, with fiscal 2025 growth anticipated to be flat to slightly up [56][57] Question: How do you see the pricing environment for contact lenses in FY '25? - Management is confident that the contact lens industry will offset inflation impacts, with expectations for stable pricing [92] Question: What is the expected contribution from acquired revenue? - Management confirmed approximately$ 25 million in annualized revenue from recent acquisitions, with a quiet M&A environment currently [96] Question: What are the upcoming product launches? - Management highlighted ongoing efforts to launch MyDay products in additional markets, with a focus on increasing availability [104][105]