The Cooper Companies Reports Strong Q3 2024 Financial Performance with 7.8% Net Sales Growth

The Cooper Companies, Inc. reported strong financial performance for the third quarter of fiscal 2024, ending July 31, 2024, with net sales reaching $1,002.8 million, a 7.8% increase from $930.2 million in the same period of 2023. For the nine months ended July 31, 2024, net sales totaled $2,877.0 million, up from $2,666.1 million year-over-year. Gross profit for the quarter was $663.0 million, compared to $610.0 million in the prior year, while gross profit for the nine-month period increased to $1,918.0 million from $1,751.4 million.

Operating income also saw significant growth, with $192.5 million for the three months ended July 31, 2024, compared to $151.6 million in 2023. For the nine-month period, operating income rose to $507.3 million from $397.4 million. Net income for the quarter was $104.7 million, up from $85.3 million, and for the nine months, it increased to $274.8 million from $209.7 million. Basic earnings per share improved to $0.53 for the quarter and $1.38 for the nine months, compared to $0.43 and $1.06, respectively, in the previous year.

The company’s cash and cash equivalents decreased to $109.7 million as of July 31, 2024, from $120.8 million at the end of October 2023. However, trade accounts receivable rose to $739.0 million, up from $609.7 million, contributing to total current assets increasing to $1,926.7 million from $1,704.9 million. Total assets also grew to $12,108.0 million from $11,658.9 million.

Strategically, CooperSurgical made notable acquisitions, including a fertility company for $33.5 million in June 2024 and Cook Medical assets for $300.0 million in November 2023. Additionally, on August 1, 2024, CooperSurgical acquired obp Surgical for approximately $100.0 million. These acquisitions are expected to enhance the company’s market presence in the fertility and women’s healthcare sectors.

The company faced challenges from unfavorable foreign exchange rate fluctuations, impacting revenue by approximately $13.1 million for the quarter and $19.8 million for the nine months. Despite this, CooperVision's product lines, particularly silicone hydrogel contact lenses, contributed to overall sales growth across all regions.

Cooper Companies reported an increase in selling, general, and administrative (SGA) expenses, primarily due to heightened advertising and marketing efforts. Research and development (R&D) expenses also rose, reflecting ongoing investments in myopia management and product innovation. The effective tax rate increased to 36.1% for the quarter, attributed to changes in the geographic composition of pre-tax earnings and an increase in the UK statutory tax rate.

As of July 31, 2024, the company had total debt of $2,632.4 million, with a significant increase in revolving credit to $1,090.2 million. The company remains compliant with all debt covenants and has $256.4 million authorized for share repurchase under its program, although no repurchases occurred during the reporting period.