The Cooper Companies, Inc. (NYSE:COO) Q1 2023 Earnings Call Transcript

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So I’d say that, you know, we’re going to — we’re eventually going to hurdle, those the equity piece, and we’ll continue to grow into our infrastructure. But, your operating margin comment for the year is directionally is in the neighborhood of where we think we’re going to land. And I would say that all of the moves that we’re making from an efficiency effort, the cost containment exercises, and one example I gave in my prepared remarks is just one of the many. But we’re going to continue to go after some structural changes to centralize and automate and leverage our infrastructure. But I expect that will continue to get leveraged as we look forward. One thing I’d also say is just, from an operating income perspective, the midpoint of our guidance is taken up by 1% on a constant currency basis.

So you would expect this year we’re already getting leverage, we’re going to get around 10.5% constant currency OI growth at the midpoint of our guidance.

Larry Biegelsen: Thank you very much.

Operator: Our next question comes from the line of Jeff Johnson from Baird, please proceed.

Jeff Johnson: Thank you. Good afternoon, guys. Al maybe starting on the contract lens business, just, what did you see from a pricing standpoint, this quarter, do you still feel like this year could be a little bit better pricing environment for you specifically, given some of those larger retail contracts? And should we expect MyDay Energys to come out at a price premium? I know Biofinity, and are just kind of was back and forth, whether it was a premium or just a premium value that they were got value out of it at the same price. So what are you planning on MyDay Energys? Thanks.

Al White: Yes, so MyDay Energys will be a price premium to the MyDay sphere. I’m not sure exactly where the number will settle out. But it’ll be somewhere around a 20% price premium to the regular MyDay lens? On pricing in general. Yes, I think that this will be a DC year from a pricing perspective for us. 2% plus pricing, we’ll get this year. As an industry, you’re seeing positive pricing, and it’s probably in that 2% plus range. Same thing. And I’m talking about net pricing, right? Because a lot of people are putting price increases through but then you’ll run programs kind of behind the scene rebate programs or whatever else, right, but net pricing looking at that to maybe as high as even 3% range. So pretty good market from that perspective.

Jeff Johnson: Yes, that’s helpful. And then I think one of the numbers that felt the most to me was that 9%, constant currency in your FRP business. I know there’s different data sources out there, one of your competitors talks about that FRP market being flat in the fourth quarter. I don’t know if you agree with that, but could beat the market by nine points. Does that speak to some of the private label benefits that Larry was asking about or how else to think about kind of that outperformance?

Al White: Yes, I don’t believe the market was flat but the market was not up a lot. We are definitely taking share and growing when you look at that space. A big part of that ends up just being the magnitude of our product offering, because I mean you have a really good product and Biofinity and a really good product Avaira Vitality, but you’re getting an add on and growth from a product like Biofinity from things like the extended range sphere and the extended rates torics that we have, the multifocal toric that’s out in the marketplace, a lot of that kind of stuff is driving pretty nice growth. And then I think when you put it all together that entire franchise together, and you put it under some of these retailers, store brands that are out there, that now they’re probably focusing a little bit more and we’ll frankly, probably continue to focus a little bit more on.

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