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Company

Contact lenses a factor in Cooper’s strong Q2 results

02/07/2018
The sales performance of daily silicone hydrogel contact lenses has helped drive a strong second quarter for The Cooper Companies, which posted a 21% YOY revenue increase amounting to US$631.3 million (AU$852.82 m).

On constant currency terms and including acquisitions in both periods, the figures represented a 5% increase, however GAAP diluted earnings per share were 42% down on the equivalent period last year to sit at US$1.23 (AU$1.66) – a reduction of US$0.89 (AU$1.20). Overall, gross profit for the quarter sat at US$404.5 million (AU$546.44 m).

A company statement related to the results highlighted the company’s gross-margin rate of 64% in the second quarter, which was marginally smaller than the 66% in last year’s second quarter.

CooperVision (CVI) revenues increased 14% to US$467.5 million (AU$631.55 m), while CooperSurgical’s (CSI) sales also rose by 44% to reach US$163.8 million (AU$221.28 m) in the quarter.

“This was a strong quarter with improving profitability and strong cash flow,” Cooper Companies president and CEO Mr Albert White said in the statement.

“CVI posted solid revenue growth driven by success with its daily silicone hydrogel lenses, and CSI posted a solid quarter driven by double digit growth in Paragard (a contraceptive device) and fertility solutions. As we move into the second half of the year, we are well positioned to continue posting strong results.”

On an operating margin basis, Cooper achieved a 12% margin in 2018 compared with 22% in last year’s second quarter. The decrease was primarily the result of the Paragard inventory step-up and an asset impairment charge within CooperSurgical associated with exiting carrier screening, the announcement noted.

The company also updated its fiscal year 2018 guidance and expects revenue in the range of US$2.515 billion (AU$3.4 b) to $2.55 billion (AU$3.44 b), with revenue from the CooperVision segment now projected to be in the range of US$1.87 billion (AU$2.53 b) to US$1.89 billion (AU$2.55 b).

Image courtesy: Getty Images | Yuji Kotani

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