CooperCompanies Reports Mid-Single Digit Sales Growth in Q4 as it Ends Fiscal 2019 on a ‘High Note’

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SAN RAMON, Calif.—CooperCompanies (NYSE: COO) reported Thursday that its sales increased 6 percent (7 percent pro forma) in the fourth quarter to $691.6 million, and 5 percent (7 percent pro forma) for fiscal 2019 to $2.65 billion. The company also noted that its gross margin in the fourth quarter (which ended Oct. 31) stayed “consistent” at 66 percent, while its operating margin came in at 21 percent in the fourth quarter, which compares with 19 percent in the year-ago period, which the company attributed to operating expense leverage.

“We closed this year on a high note with a strong fourth quarter driving record full-year revenues and profits,” Albert White, Cooper’s president and chief executive officer, said in the announcement. “We continued to execute on our growth strategies across both businesses, delivering strength across key products and geographies. As we enter fiscal 2020, we believe we are well positioned to continue producing strong results and driving market penetration."

In the fourth quarter, sales in the CooperVision segment totaled $509.6 million, an increase of 6 percent from last year’s fourth quarter (the increase was 7 percent pro forma). For the fiscal year, CooperVision achieved sales growth of 5 percent (to $1.973 billion).

Among the company’s contact lens portfolio, toric lenses were the best-selling category with fourth-quarter sales of $155.7 million (a 4 percent increase), while sales of single-use sphere lenses rose 9 percent to $154.5 million. Non-single use sphere lenses represented the third-largest CL category in the fourth quarter, with sales of $147.6 million (a 4 percent increase).

On the bottom line, Cooper reported that net income totaled $121 million the fourth quarter, which compared with $100.6 million in the year-ago period. For fiscal 2019, net income totaled $466.7 million, which compares with $139.9 million in fiscal 2018, according to the earnings announcement.

Looking ahead to 2020, Cooper said it expects fiscal year total revenue in the range of $2,767 million to $2,817 million (a 5 percent to 7 percent increase at constant currency), with the CooperVision segment achieving sales in the range of $2,070 million to $2,100 million (an increase of 5.5 percent to 7 percent at constant currency).