Executive Summary
In Q4 2024, The Cooper Companies Inc (COO) achieved significant financial milestones with total revenues reaching $1.018 billion, a 10% increase year-over-year driven primarily by strong sales in CooperVision's daily silicone hydrogel lenses and CooperSurgical's fertility products. Notably, CooperVision and CooperSurgical reported yearly record revenues, bolstering the company’s market leadership in contact lenses. However, management noted unexpected softness in U.S. sales towards the end of the quarter, which has necessitated a cautious outlook for fiscal year 2025. Despite these challenges, The Cooper Companies is focused on expansion initiatives and increased product availability, positioning itself for continued growth.
Key Performance Indicators
Key Insights
**Revenues:** $1.018 billion, up 10% YoY, or 7% organically.
**Net Income:** $117.5 million, up 39.05% YoY with diluted EPS of $0.58.
**Gross Profit Margin:** Increased to 61.6% from 61.4% prior.
**Operating Margin:** Improved to 19.4%.
**Cash Flow from Operations:** $268 million.
**Free Cash Flow:** $128 million.
**Net Debt:** Reduced to $2.48 billion, showing a healthier balance sheet with a leverage ratio of 1.94x.
**Key Competitors Performance:** Johnson & Johnson and Bausch reported dou...
Financial Highlights
Revenues: $1.018 billion, up 10% YoY, or 7% organically.
Net Income: $117.5 million, up 39.05% YoY with diluted EPS of $0.58.
Gross Profit Margin: Increased to 61.6% from 61.4% prior.
Operating Margin: Improved to 19.4%.
Cash Flow from Operations: $268 million.
Free Cash Flow: $128 million.
Net Debt: Reduced to $2.48 billion, showing a healthier balance sheet with a leverage ratio of 1.94x.
Key Competitors Performance: Johnson & Johnson and Bausch reported double-digit growth, highlighting a competitive market landscape.
Income Statement
Metric |
Value |
YoY Change |
QoQ Change |
Revenue |
1.02B |
9.85% |
1.56% |
Gross Profit |
627.50M |
3.46% |
2.43% |
Operating Income |
198.40M |
46.20% |
3.06% |
Net Income |
117.50M |
39.05% |
12.23% |
EPS |
0.59 |
37.21% |
11.32% |
Key Financial Ratios
operatingProfitMargin
19.5%
operatingCashFlowPerShare
$1.33
freeCashFlowPerShare
$0.64
Management Commentary
Financial Performance and Growth: Al White, CEO, stated, “This was a tremendous year with all-time record revenues of $3.9 billion,” emphasizing the dual strength in both CooperVision and CooperSurgical.
Market Prospects: Management projects a 5%-7% increase in the contact lens market for FY 2025, with prospects of outperforming the market by maintaining a 6.5%-8.5% growth range. White noted, “We’re still in a situation where demand for MyDay exceeds our manufacturing capacity.”
Challenges and Opportunities: White remarked on “unexpected softness” in sales, particularly in the U.S. towards quarter-end, indicating the need to monitor market conditions and competitor actions closely.
Al White: 'CooperVision had a solid quarter, led by strength in silicone hydrogel dailies and our full suite of torics and multifocals.'
— Al White, CEO
Brian Andrews: 'Free cash flow was $128 million with CapEx of $140 million, highlighting our commitment to investing in capacity to meet demand.'
— Brian Andrews, CFO
Forward Guidance
The Cooper Companies anticipates overall revenue growth for FY 2025 ranging from $4.08 billion to $4.158 billion, continuing its focus on expanding production capacity and launching new products. They expect a challenging landscape yet forecast improved margins driven by operational efficiencies and pricing strategies. Management mentions a potential FX headwind affecting revenue and earnings by approximately 1.5% and 4%, respectively. The company must navigate upcoming market pressures from evolving consumer needs and increased competition.