The Cooper Companies, Inc. (NYSE:COO) Q4 2023 Earnings Call Transcript

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Albert White: Yes, so I would say on capital allocation, our focus, frankly, is on paying down debt right now. We’ll continue to do the things we do, but we’ll have a heavier focus on paying down debt. If I look at share gains, yes, we anticipate continuing to take share and contact lenses. A lot of that will come from innovation because there’s some exciting products out there. Like I talked about, MyDay Energous as an example, which is doing really well, a really cool, innovative product that’s doing well. And then some of it I call innovation tied to some of the stuff that we’ve been doing, like on the multifocal side and on the Toric side. So I think we’ll have another good year within the vision space. And I think we’ll take share also within CooperSurgical, certainly within fertility.

Great team there doing just an absolutely fantastic job, just posted a tremendous quarter. I have all the faith in the world in them, and we’re continuing to invest behind them. And we’ll continue to invest behind them moving forward. And I think we’ll see ongoing share gains within fertility.

Navann Ty: Thank you.

Operator: Our final question comes from the line of Anthony Petrone with Mizuho. Please go ahead.

Anthony Petrone: Thanks. Maybe one on Vision, one on Surgical. On the Vision side, going back to MiSight, maybe just to recap on what you’re seeing from early patient adopters. Are there any noticeable drop-offs, or is the attach rate still high? And then when you think of prescribers, the early adopters on the prescriber end, are they writing more prescriptions for MiSight? And then just really quickly on surgical, when we think of just kind of the M&A landscape, we would assume that IBF, there was issues there from antitrust, so that wouldn’t be an area. What other areas in women’s health are potentially attractive to CSI? Thanks.

Albert White: For CSI, yes, we’ll continue to look at some tuck-in acquisitions and so forth if we can find them. Again, I would reiterate, though, that we are looking at paying down debt. We’ve done, I think, a deal that’s going to turn out to be fantastic for us that we closed November 1st. So we’ll keep our eyes open maybe on some medical device stuff or some smaller tuck-ins that are out there. And if something comes along that makes sense, we’d evaluate that. Otherwise, we’ll focus on paying down debt. If I look at MiSight, our retention rates remain very high. We use an app that tracks all that, so all of our patients are on an app, and we’re still running somewhere around that 90% retention rate. We are seeing increasing fitting activity around the world.

We’re seeing increasing fitting activity within key accounts also, which is kind of exciting for us right now. So the trends are good there. We had a good Q4. I’m anticipating a good Q1 right off the bat. We normally have our business kind of a sequential decline. It’ll be interesting to see whether we even have that within MiSight, given the strength of that business, the momentum that’s going on right now in terms of the number of fits that are out there and the growth that we’re seeing. So more to come on that one.

Anthony Petrone: Thanks again.

Operator: I would now like to turn the call over to Al White for closing remarks.

Albert White: Great. Thank you. Just to summarize, record year, record revenues, and vision, surgical, strong OI growth this year. We’re giving guidance, and we believe we’re going to have another strong year this year all the way through the P&L. So I’m excited about where things stand today, and I’m looking forward to this year because I think it’s going to be a really good year for us. So thank you to all of our employees around the world who killed it this year and are continuing to do an amazing job. And thank you for everyone who called in, and we’ll talk later. Thank you. Thank you, operator.

Operator: I would like to thank our speakers for today’s presentation, and thank you all for joining us. This now concludes today’s call, and you may now disconnect.

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