The Cooper Companies, Inc. (NYSE:COO) Q4 2022 Earnings Call Transcript

We’ve got a great presence there, a great team there, and I would expect us to continue to put up strong numbers in Asia Pac. The Americas, I think, continues to kind of grow around in this area. I do think one thing that could help the Americas some will end up being priced. We all talked about price, but the key on price ends up being the net price that you realize taking price and then offering discounts or other activity to retailers and people doesn’t get you the true price. You have to look at the net price increases. I think as an industry and us included, everybody is doing a better job focusing on that, saying, “Hey, we have to get the net price increase. So I think that’s going to help the Americas market a little bit as we’re in 2023 also.

Jason Bednar: Okay. That’s helpful. And then AL, as you’re thinking about pricing for next year, I mean your the stability for fiscal ’23, 2% next year versus 2% you just put up. But I thought there was a supposed to be maybe some lagged effect on some of those key accounts you have the contract resetting. So I guess is the 2% tailwind for pricing next year? Is that just conservatism? Or are those contracts not resetting like we thought they were? Just curious how you’re thinking about that dynamic.

Albert White: Sure. Yes. I think that — I don’t think we got 2% last year in terms of price increases. We did not — CooperVision did not get 2% on in terms of price increases. So I think we were probably more in the 1% to 1.5% kind of range for price increases. And I think that increases the too, which picks up the things that you’re talking about. And I think that will — that bodes well, if you will, when you think about that from the perspective of what that means for like Q3, Q4 this year and probably fiscal ’24 also because the things that you’re referencing are all future positives.

Operator: Our next question comes from Robbie Marcus from JPMorgan.

Lilly Lozada: This is actually Lilly on for Robbie. We’ve heard about supply and manufacturing issues from both you and some of your competitors. So do you think this is affecting share? And have you seen any benefits or loss from these IMX?

Albert White: I don’t think we’ve seen really share shifts. We’ve all had our challenges I think that it cost us some. We met a lot of the customer expectations through expedited shipping, that kind of thing. And that’s some of what Brian was talking about, right, which is those costs to meet consumer expectations can get expensive. I think at the end of the day, when you’re talking about share shifts and so forth, though, it takes a little bit longer to see that. The practitioners setting what they want to fit they need to go through a period of time where they’re unable to get product from someone before they really start changing their fitting behavior. So I don’t think we’ve seen shifting share dynamics because of that. We’ve been taking share, I would say, for the same reasons that we’ve taken it historically.

Great product portfolio and a great sales team out there executing. I don’t think that we really see much in terms of share shift because of supply chain challenges that we’re shipping related issues.

Lilly Lozada: Got it. And then just a follow-up. The silicone daily number came in pretty well above what we were thinking. So maybe just on the competitive environment there. Is there any color you can share on what you’ve been seeing in terms of share capture versus trade-ups from your own base?