SAN RAMON, Calif.—CooperCompanies (Nasdaq: COO)  yesterday announced the financial results for its fiscal first quarter ended Jan. 31, 2024. Overall, revenue increased 9 percent year-over-year to $931.6 million; CooperVision (CVI) revenue was up 7 percent to $621.5 million, and CooperSurgical (CSI) revenue was up 12 percent to $310.1 million. Al White, Cooper’s president and CEO, said, “We're off to an outstanding start this fiscal year. We delivered record quarterly revenues in Q1 with contact lenses growing solidly and fertility posting its 13th consecutive quarter of double-digit organic growth.

“Our earnings were strong and our momentum is excellent with capacity expansion progressing well and demand remaining very healthy,” White said.

In the first quarter of 2024, CooperCompanies’ revenue was $931.6 million, up 9 percent from last year’s first quarter, up 8 percent in constant currency, and up 8 percent organically. The gross margin was 67 percent, compared with 65 percent in last year’s first quarter. On a non-GAAP basis, gross margin was 67 percent, up from 66 percent last year. This was driven by efficiency gains and price at both CooperVision and CooperSurgical.

The operating margin was 16 percent, compared with 17 percent in last year’s first quarter. On a non-GAAP basis, operating margin was 24 percent, up from 23 percent last year. This was driven primarily by strong gross margin and SG&A (Selling, General and Administrative expenses) leverage.

The first quarter interest expense of $29.9 million was up from $26.1 million in last year’s first quarter, driven by higher interest rates.

CooperCompanies’ net debt outstanding at the end of the quarter was $2.6 billion; this is total debt excluding unamortized debt issuance costs less cash and cash equivalents. Cash provided by operations of $122.7 million was offset by capital expenditures of $118.1 million, which resulted in free cash flow of $4.6 million.

For CVI specifically, revenue was $621.5 million, up 7 percent from last year’s first quarter, up 6 percent in constant currency, and up 7 percent organically. Toric and multifocal contact lenses accounted for $297.3 million in revenue, while sphere and other contact lenses generated $324.2 million. Revenue of $252.6 million came from the Americas, $238.2 million from EMEA, and $130.7 million from Asia Pacific.

For CSI specifically, revenue was $310.1 million, up 12 percent from last year’s first quarter, up 13 percent in constant currency, and up 8 percent organically. Revenue of $191.1 million came from office and surgical and $119.0 came from fertility.

Finally, CooperCompanies raised its fiscal year 2024 financial guidance. The new guidance is:

● Fiscal 2024 total revenue of $3,847 million to $3,897 million (organic growth of 7 percent to 8 percent).

● CVI revenue of $2,573 million to $2,604 million (organic growth of 8 percent to 9 percent).

● CSI revenue of $1,274 million to $1,293 million (organic growth of 5 percent to 7 percent).