The Cooper Companies (COO) 2024 Wells Fargo Healthcare Conference summary

Fiscal 2024 performance and outlook

• Q3 delivered 8% organic sales growth and 25.5% operating margin, driven by double-digit growth in both contact lens and fertility businesses.

• Contact lens market expected to sustain 6-7% annual revenue CAGR over the next decade, supported by conversion to dailies, growth in torics/multifocals, and new wearer growth.

• Fertility business projected to grow 6-8% annually, with strong global demand and market drivers.

• Q4 guidance for CooperVision is 9% growth at midpoint, with demand outpacing supply in some product lines.

• EPS guidance raised, with improvements attributed to operational leverage and favorable FX, not recent deals.

Market dynamics and pricing

• Contact lens market growth remains robust at 6-7%, with pricing actions supporting above-trend performance.

• Planned price increases in fiscal Q1 2025, ahead of competitors, expected to support continued growth.

• Company leads in global wearer share but is second in dollar share due to higher weighting in monthly lenses versus dailies.

• Daily lens market share is growing and expected to lift overall revenue share over time.

Product launches and innovation

• Fiscal 2025 and beyond will focus on expanding successful products like MyDay Energys and Clariti multifocal internationally.

• MyDay Toric expanded range to be introduced in more markets; emphasis on leveraging existing product success globally.

• MiSight myopia control lens seeing strong back-to-school demand, with increased practitioner and consumer awareness.