The Cooper Companies (COO) Jefferies Global Healthcare Conference summary

First half performance and outlook

• Contact lens segment posted strong first half, with capacity coming online faster than expected, leading to double-digit growth in Q2 and a positive outlook for the rest of the year.

• Vision segment guidance raised to 9% midpoint for the second half, with expectations to potentially exceed this due to diversified growth and strong product performance.

• Surgical segment had a solid Q1 but faced Q2 challenges from an ERP upgrade, with lost revenues expected to recover in Q3 or Q4.

• Fertility expected to rebound to high single or low double-digit growth in Q3, while Paragard faces channel contraction and a likely year-over-year decline.

Market positioning and growth drivers

• Broad and differentiated contact lens portfolio enables continued market share gains, especially in torics and multifocals.

• Demand for contact lenses exceeds supply, prompting ongoing capacity expansion and monthly addition of new production lines.

• Daily silicone hydrogel (SiHy) lenses are a key growth driver, with market penetration at 60% of dailies and significant runway for further adoption.

• New wearer fits and premium product offerings, such as MyDay, are outpacing overall market share.

Capacity, pricing, and operational strategy

• Industry-wide capacity constraints expected to persist for several years, with 24-month lead times for new production lines.

• Capital expenditures remain elevated to support capacity growth, with emphasis on meeting demand in the Americas and Europe.

• Pricing remains strong at 2%-3% increases, supported by consumer preference for premium products and value-added services.

• Investments in infrastructure and automation are driving operational efficiencies and SG&A leverage, supporting margin improvement.