CooperCompanies announces first quarter 2024 results

CooperCompanies announced financial results for its fiscal first quarter ended January 31, 2024.

• Revenue increased 9% year-over-year to $931.6 million. CooperVision (CVI) revenue up 7% to $621.5 million, and CooperSurgical (CSI) revenue up 12% to $310.1 million.
• GAAP diluted earnings per share (EPS) of $0.41, down $0.02 or 5% from last year’s first quarter.
• Non-GAAP diluted EPS of $0.85, up $0.12 or 18% from last year’s first quarter. See “Reconciliation of Selected GAAP Results to Non-GAAP Results” below.

Commenting on the results, Al White, Cooper’s President and CEO said, “We’re off to an outstanding start this fiscal year. We delivered record quarterly revenues in Q1 with contact lenses growing solidly and fertility posting its thirteenth consecutive quarter of double-digit organic growth. Our earnings were strong and our momentum is excellent with capacity expansion progressing well and demand remaining very healthy.”

First quarter operating results

• Revenue of $931.6 million, up 9% from last year’s first quarter, up 8% in constant currency, up 8% organically.
• Gross margin of 67% compared with 65% in last year’s first quarter. On a non-GAAP basis, gross margin was 67%, up from 66% last year driven by efficiency gains and price at both CooperVision and CooperSurgical.
• Operating margin of 16% compared with 17% in last year’s first quarter. On a non-GAAP basis, operating margin was 24%, up from 23% last year driven primarily by strong gross margin and SG&A leverage.
• Interest expense of $29.9 million up from $26.1 million in last year’s first quarter driven by higher interest rates.
• Net debt outstanding at quarter end was $2.6 billion (total debt excluding unamortized debt issuance costs less cash and cash equivalents).
• Cash provided by operations of $122.7 million offset by capital expenditures of $118.1 million resulted in free cash flow of $4.6 million.

First quarter CooperVision (CVI) revenue

• • Revenue of $621.5 million, up 7% from last year’s first quarter, up 6% in constant currency, up 7% organically.
  • Revenue by category:

• • Revenue by geography:

First quarter CooperSurgical (CSI) revenue

• • Revenue of $310.1 million, up 12% from last year’s first quarter, up 13% in constant currency, up 8% organically.
  • Revenue by category:

Other

• The Company’s four-for-one stock split became effective after close of trading on February 16, 2024, and began trading on a stock split-adjusted basis on February 20, 2024.

Fiscal year 2024 financial guidance
The company raised its fiscal year 2024 financial guidance. Details are summarized as follows:

• Fiscal 2024 total revenue of $3,847 – $3,897 million (organic growth of 7% to 8%)
  • CVI revenue of $2,573 – $2,604 million (organic growth of 8% to 9%)
  • CSI revenue of $1,274 – $1,293 million (organic growth of 5% to 7%)
• Fiscal 2024 non-GAAP diluted EPS of $3.50 – $3.58

Non-GAAP diluted earnings per share guidance excludes amortization and impairment of intangible assets, and other exceptional or unusual income or gains and charges or expenses including acquisition and integration costs which we may incur as part of our continuing operations.

With respect to the Company’s guidance expectations, the Company has not reconciled non-GAAP diluted earnings per share guidance to GAAP diluted earnings per share due to the inherent difficulty in forecasting acquisition-related, integration and restructuring charges and expenses, which are reconciling items between the non-GAAP and GAAP measure. Due to the unknown effect, timing and potential significance of such charges and expenses that impact GAAP diluted earnings per share, the Company is not able to provide such guidance.
MB Bureau