Executive Summary
The Cooper Companies Inc reported robust financial results for the first quarter of fiscal year 2025, showcasing record revenues of $965 million, representing a year-over-year increase of 4%, and an organic growth of 5%. This growth was primarily driven by CooperVision, which achieved $646 million in revenue, reflecting a 4% increase and a 6% organic growth. Meanwhile, CooperSurgical generated $319 million in revenue, up 3% and 2% organically. The management reported strong operating performance with non-GAAP earnings per share rising to $0.92, driven by improved gross margins and operational efficiencies despite facing challenges in certain markets, particularly in China. The company's strategic investments in its MyDay product line are expected to facilitate further growth as production constraints loosen and new product launches are on the horizon.
Key Performance Indicators
QoQ: -11.23% | YoY:28.45%
QoQ: -11.86% | YoY:26.83%
Key Insights
**Revenue Growth:** 4% YoY, 5% organic; **Gross Profit:** $660.2 million, Gross Margin 68.7% (up from 67.3%); **Operating Income:** $182 million; **Net Income:** $104.3 million; **EPS:** $0.92; **Free Cash Flow:** $101 million; **Net Cash Provided by Operating Activities:** $190.6 million; **Capital Expenditure:** -$89.4 million. Key drivers of revenue included a 20% increase in the myopia management portfolio, particularly with MySite, which grew 27% and established CooperVision's market l...
Financial Highlights
Revenue Growth: 4% YoY, 5% organic; Gross Profit: $660.2 million, Gross Margin 68.7% (up from 67.3%); Operating Income: $182 million; Net Income: $104.3 million; EPS: $0.92; Free Cash Flow: $101 million; Net Cash Provided by Operating Activities: $190.6 million; Capital Expenditure: -$89.4 million. Key drivers of revenue included a 20% increase in the myopia management portfolio, particularly with MySite, which grew 27% and established CooperVision's market leadership in innovation. Management noted their optimization strategies are yielding improvements while also overcoming previous inventory contractions, particularly in the Americas and EMEA, bolstered by a favorable product mix and increased sales in premium areas such as daily silicone hydrogel lenses.
Income Statement
Metric |
Value |
YoY Change |
QoQ Change |
Revenue |
964.70M |
3.55% |
-5.27% |
Gross Profit |
660.20M |
15.12% |
5.21% |
Operating Income |
182.00M |
18.88% |
-8.27% |
Net Income |
104.30M |
28.45% |
-11.23% |
EPS |
0.52 |
26.83% |
-11.86% |
Key Financial Ratios
operatingProfitMargin
18.9%
operatingCashFlowPerShare
$0.95
freeCashFlowPerShare
$0.5
Management Commentary
Market Presence and Strategy: Albert White emphasized Cooper's operational excellence, noting, "We met our expectations for revenues and exceeded expectations for margins, earnings, and free cash flow, and this included overcoming the negative impact of currency."
Product Launches: Management discussed plans to move forward with key product launches, saying 'We have also increased our private label availability as that part of our business has started accelerating.' This highlights strategic focus on capturing market share in the contact lens sector.
Market Dynamics: White also remarked that 'the quarter started soft with some channel inventory contraction but quickly returned to normal,' reflecting a recovery in market demand.
Albert White stated, 'We are off to a strong start this year reporting record Q1 revenues and earnings.'
β Albert White
Brian Andrews noted, 'We met our internal revenue expectations, delivered margin expansion, and took another step forward with free cash flow generation.'
β Brian Andrews
Forward Guidance
The Cooper Companies maintains a robust outlook for fiscal year 2025. They project consolidated revenues in a range of $4.08 billion to $4.158 billion, reflecting organic growth rates between 6% to 8%. CooperVision revenue guidance remains between $2.733 billion and $2.786 billion, with a focus on leveraging their increased MyDay production to saturate markets lacking availability, which Albert White described as a 'slam dunk for growth.' Expectations for non-GAAP EPS are also slightly raised to between $3.94 and $4.02, anticipating continued solid performance in the coming quarters driven by strategic investments and operational efficiencies.