CooperCompanies Reports ‘Solid’ Q4 Results and Notes Market-Share Gains in Contact Lens Segment

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SAN RAMON, Calif.—CooperCompanies (NYSE: COO) on Thursday reported that its fourth-quarter revenue fell 1 percent year-over-year to $681.6 million. In its business units, CooperVision (CVI) revenue dipped 1 percent to $506.3 million, and CooperSurgical (CSI) revenue fell 4 percent to $175.3 million. For the fiscal year, which ended Oct. 31, 2020, revenue totaled $2.430 billion, a decrease of 8 percent from fiscal 2019 (also down 8 percent at constant currency). CVI revenue totaled $1.843 billion, down 7 percent from fiscal 2019 (down 6 percent at constant currency).

The CSI division reported revenue of $587.9 million, down 14 percent (down 13 percent at constant currency).

“This was a solid quarter where we took market share globally in both contact lenses and fertility,” Al White, Cooper’s president and chief executive officer, said in the announcement. “We're continuing to have success with our daily silicone hydrogel portfolio, with unique products like Biofinity Energys, and with our myopia management program which includes MiSight and our Ortho K lenses.”

Net income declined in both the quarter and full-year periods. In Q4, net income totaled $81.2 million, a decline of 32.9 percent from net income of $121 million in the year-ago quarter. For the fiscal year, net income fell 48.9 percent to $238.4 million.

For the CVI contact lens business unit, the toric segment (the largest individual CL category at CVI) saw a 4 percent drop in sales in the fourth quarter to $161.9 million (or 32 percent of overall CVI revenue in the period). The decline was 2 percent at constant currency.

The second-largest segment, single-use sphere, reported revenue of $148.3 million, a drop of 4 percent (6 percent at constant currency). The non single-use sphere category achieved total sales of $142.9 million, a decline of 3 percent (4 percent at constant currency).

For the fiscal year, CVI revenue totaled $1.843 billion, down 7 percent from fiscal 2019, and down 6 percent at constant currency. The gross margin rate was 63 percent, which compared with 66 percent in fiscal 2019.

On a geographic basis, sales in the Americas (the largest market at 41 percent of the aggregate) totaled $204.8 million, a 3 percent increase.