The Cooper Companies, Inc. (NYSE:COO) Q4 2022 Earnings Call Transcript

Albert White: Yes. Yes. I think that people are underestimating the power of CooperVision’s daily silicone hydrogel portfolio. I know there’s a lot — it’s complicated, right? And it’s probably — it’s more complicated than some of our competitors in terms of the offerings that we have. But when we talk about something like the MyDay toric parameter expansion launch that we’re going through. I mean, I understand that’s a hard thing for people to understand or get their arms around, but it’s powerful and it’s important, and there’s incredible traction associated with that and great annuity streams on high-priced products. So I think at the end of the day, that’s probably what it is. And if you think about that in the context of not only a product like MyDay toric, but also the multifocal and you think about energies, a really, really strong product side.

And by the way, I don’t want to ignore clariti, which is doing really well, especially in Asia Pac right now. So it’s not surprising to me that we’re continuing to put up strong daily silicon numbers. And I would expect those to continue as we move through 2023.

Operator: Our next question comes from Zach Weiner from Jefferies.

Zachary Weiner: I just want to focus on MiSight. Can you give some color on how patients volumes are turning through and as if I think is impacting MiSight at all? And then any color on MiSight retention rate through the quarter.

Albert White: Sure. Yes, MiSight was a positive this quarter, better than my expectations. The myopia management number, if you will, in total we get the 93 million, but Ortho-K was weaker than expected. We ran into some issues in September and October with our Ortho-K product line in China. We all know what’s been happening in China. And our Ortho-K sales came in definitely lower than expected. The flip was true on MiSight, where we posted some good numbers. I was happy with that. The fitting activity is pretty strong there. The interest in activity we’re seeing from some key accounts and retailers and so forth is positive. aware was positive again definitely this past quarter, so some good positive trends with respect to MiSight. It’s almost a little under the surface, if you will, but I was really happy with our Q4 performance there.

Operator: Our next question comes from David Saxon from Needham.

David Saxon: Maybe I’ll start with the guidance, the organic guidance at least held for slow down and CVI 7 to 9 versus, I think, it was 12% in fiscal ’22, and CSI 4 to 6 versus 8% in ’22, and lower 5 to 10 market growth, you call out. So just wanted to ask if this just kind of comp dynamic, you are facing touch comps, or are there any change in the market place that’s causing the slow down?

Albert White: So yes, tough comps is part of it as a matter of fact a couple of years with pretty decent performance here in tough comps. We’re seeing strong results so far this quarter. We’re not seeing anything to really indicate a material slow down, that’s for sure. Having said that, we’re giving guidance for the full year. So when you think about the factors Brian mentioned talking about guidance, right, and the potential that we’re factoring in a moderate recession and inflation and other items that are out there, yes, we try to take that all into consideration and give what we though were prudent guidance ranges.

David Saxon: Okay. Got it. And then maybe a two-parter on the M&A front, I guess. Any update on the map around the Cook deal? Help us think through kind of the impact from selling assets needed to get the deal done and higher interest rates. And then on the synergize deal, maybe give us a brief overview on that and kind of how it fits into your speciality lens portfolio?