SAN RAMON, Calif.—CooperCompanies (NYSE: COO) reported financial results for its fiscal second quarter ended April 30, 2022 and said that revenue increased 15 percent year-over-year to $829.8 million, up 20 percent in constant currency and 10 percent organically. CooperVision (CVI) revenue rose 6 percent to $553.8 million for the period while CooperSurgical (CSI) revenues climbed 40 percent to $276.0 million. Commenting on the results, Al White, Cooper's president and CEO said, "CooperVision and CooperSurgical both posted strong revenue growth, gained share, and are continuing to see strong momentum. I am very encouraged by our business trends and am confident our strategic initiatives position us well for the future."

For the company, gross margin was 64 percent compared with 68 percent in last year’s second quarter. On a non-GAAP basis, gross margin was 67 percent, down from 68 percent last year driven primarily by currency. Operating margin of 16 percent compared with 20 percent in last year’s second quarter. On a non-GAAP basis, operating margin was 24 percent, down from 27 percent last year driven primarily by currency, the company said.

Net debt outstanding at the end of the quarter was $2.86 billion (total debt excluding unamortized debt issuance costs less cash and cash equivalents) down $124.8 million from last quarter. Cash provided by operations of $131.8 million were offset by capital expenditures of $43.4 million resulting in free cash flow of $88.4 million. Net debt decreased by more than free cash flow due to the positive cash impact from closing the SightGlass Vision joint venture.

CooperVision's revenues in the second quarter in the Americas rose 8 percent year over year to $223.5 million, and 8 percent in constant currency. Sales in EMEA rose 6 percent year-over-year to $205.9 million or 15 percent in constant currency while sales in Asia Pacific grew 3 percent year-over-year to $124.4 million or 10 percent in constant currency. In terms of categories, CooperVision's torics, multifocals and single-use spheres were up for the period.

In March 2022, the company closed its joint venture agreement with EssilorLuxottica for SightGlass Vision. This collaboration of two of the world's leading vision care companies accelerates the commercialization of its novel spectacle lens technologies to expand the myopia management category, as VMAIL previously reported.

In April 2022, the company made the decision to exit its contact lens solutions business. It is anticipated this business will continue operating through the end of the fiscal year.

Cooper updated its fiscal 2022 financial guidance, looking at fiscal 2022 total revenue between $3,280 million to $3,312 million (organic growth of 9 percent to 10 percent). The updated guidance for CVI revenue is $2,225 million to $2,247 million (organic growth of 10 percent to 11 percent) and CSI revenue between $1,055 million to $1,065 million (organic growth of 6 percent to 7 percent.)

The company noted fiscal year 2022 financial guidance does not include the Cook Medical Reproductive Health acquisition announced on Feb. 7, 2022 as the transaction is pending regulatory approval.