BUSINESS CooperCompanies Posts Strong 3Q 2022 Results By Staff Friday, September 2, 2022 12:24 AM SAN RAMON, Calif.—CooperCompanies (NYSE: COO) reported strong financial results for its fiscal third quarter ended July 31, 2022. Revenue increased 10 percent (18 percent in constant currency) year-over-year to $843.4 million. CooperVision (CVI) revenue rose 2 percent (10 percent in constant currency) to $566.3 million. CooperSurgical (CSI) revenue climbed 35 percent (39 percent in constant currency), to $277.1 million. The growth was led by the daily silicone hydrogel portfolio in myopia management products for CooperVision and fertility for CooperSurgical, according to CooperCompanies.Commenting on the results, Al White, Cooper's president and CEO said, "We delivered record revenues this quarter with CooperVision posting its sixth straight quarter of double-digit organic revenue growth, and CooperSurgical's fertility business posting its seventh straight quarter of double-digit organic revenue growth. Demand for our products and services remains very healthy and we continue executing on our strategic initiatives to drive long-term shareholder value." CooperCompanies reported a 65 percent gross margin compared with 68 percent in last year’s third quarter. Operating margin was 17 percent compared with 13 percent in last year’s third quarter. Interest expense was $17.1 million compared with $5.6 million in last year's third quarter driven by higher average debt levels and higher interest rates, the company said. Net debt outstanding at quarter end was $2.6 billion (total debt excluding unamortized debt issuance costs less cash and cash equivalents) down $218.2 million from last quarter. Adjusted leverage ratio (net debt over adjusted EBITDA) was 2.44x. Cash provided by operations of $263.9 million offset by capital expenditures of $46.6 million resulted in free cash flow of $217.3 million. On a call with financial analysts, White noted that “the challenging macro environment, including headwinds from currency inflation and supply chain challenges has negatively impacted profitability, but has not reduced our ability to take share and drive sustainable, top-line growth.” He added that revenue growth was strong and diversified in all product categories, spheres, torics and multifocals, and within all three geographic regions. The Americas was up 7 percent, EMEA (Europe Middle East Africa) grew 15 percent and Asia-Pacific grew 11 percent. “This performance was driven by a number of factors, including new product launches, expanded product ranges, market-leading flexibility through our customized offerings, growth in key accounts and strength of branded products,” White said. “Regarding product details daily silicone hydrogel lenses grew 24 percent led by great results from both MyDay and clariti,” he continued. “Daily silicones continue to be the main driver of growth for the contact lens industry and we offer the broadest portfolio in the market with MyDay and clariti available in a broad range of spheres, torics and multifocals. Within this we’re continuing to see especially strong growth for MyDay, including from the very successful rollout of the MyDay multifocal, which is taking share on markets around the world.” Based on its third quarter performance, CooperCompanies updated its fiscal year 2022 financial guidance with projected revenue of $3,290 million to $3,310 million, with organic growth of 10 percent to 11 percent. CVI fiscal year 2022 revenue is estimated to be $2,236 million to $2,247 million, with organic growth of 11 percent to 12 percent. CSI revenue is projected to be $1,055 million to $1,064 million, with organic growth of 7 percent to 8 percent. Fiscal fourth quarter 2022 total revenue is estimated to be $830 million to $850 million, with organic growth of 9 percent to 11 percent.