The Cooper Companies, Inc. (NYSE:COO) Q1 2023 Earnings Call Transcript

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Al White: Yes, well, I talked about this kind of every quarter. But somewhere around a third of the world is myopic today, and by the year 2050, half the world’s going to be myopic. I mean, that’s where the current trends are. So the macro trends are saying that more and more people are going to need visual correction. And that’s going to continue year in and year out for a long time. And that’s no surprise to anyone on the phone. And we all know how much people are staring at screens and how much kids are staring at screens and so forth. So at the end of the day, you’re going to have an expansion of wears that need visual correction, and a percentage of those are going to want contact lenses. So you are going to continue to see more and more people needing visual correction and contact lenses.

Certainly here in the near term you are going to see price, I don’t think anybody’s raising price like crazy, but I think I’ll speak for ourselves. And I will say, we’re not trying to gouge anybody by any means that mean we’re raising price, because price of raw materials and other costs are going up for us and, and we’re not raising any prices to cover all that stuff, because part of our responsibility is to drive efficiencies to cover part of that. But at the end of the day, you’re going to see pricing. So when you look at pricing, when you look at expansion of the wearer base, when you look at better fitting, and by better fitting, I mean more torics and more multifocal higher price products, all that kind of activity, all that’s going to continue to drive growth.

So if we look back 10 years from today, in the contact lens industry grew, let’s say 6% a year, I would be comfortable talking about that kind of growth rate. And I think, you know, half of that could certainly be driven, if not more than that ultimately by expansion in terms of number of wares.

David Saxon: Great, thanks so much.

Operator: Our next question comes from a line of Chris Pasquale from Nephron. Please proceed.

Chris Pasquale : Yes, thanks. And congrats on a solid quarter, guys. Al, I was curious the CooperVision upside really came at least relative to our numbers outside of the core sky high, the Myopia management segments they get all the attention. Is there anything unusual in that non-sky high part of the portfolio, and it was a lot of noise last year with lens solution coming out? And we saw you had at least one more tough comp before you lap that.

Al White: Yes. I’m not sure there was anything too unusual in there. I will say that it’s interesting you mentioned that because we did have strength, obviously, within areas like our daily silicones and our Biofinity and Avaira product. But there’s still demand for our products out there like Pro Clear and some of the older products that we have out there, those are all declining products. But they’re maybe not declining as fast as they were. So we’re kind of seeing across the board decent demand, including in some of the areas we’re talking about that we don’t highlight or discuss anymore.

Chris Pasquale: Okay, thanks. And then any update on SightGlass timing of next milestones there, what we should be looking for as we go through ’23?

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