How did COO's revenue and expenses trend in Q1 2025?
5/9/2025 05:22pm
The Cooper Companies (COO) reported a total revenue of $964.7 million for Q1 2025, reflecting a 4% year-over-year increase and a 5% organic growth. This growth was driven by strong performances across key segments, including:
1. **CooperVision**: Revenue increased by 4%, with a 6% organic growth, reaching $646 million. The MyDay product line experienced significant demand, with torics, multifocals, and Energys performing particularly well.
2. **CooperSurgical**: Revenue grew by 3% year-over-year and 2% organically, amounting to $319 million. The company saw efficiency gains and mix improvements, leading to a consolidated gross margin increase to 68.7% from 67.3%.
Despite the revenue growth, COO's net income rose to $104.3 million, the company faced challenges that affected certain segments and overall performance:
1. **Challenges in China**: Business in China declined year-over-year, impacting overall performance.
2. **Fertility Market Challenges**: Fertility revenues posted only a 1% increase, which was below expectations due to unique items and a tough comparison from the previous year.
3. **Soft Start and Channel Inventory**: The company experienced a soft start to the quarter with channel inventory contraction, although it returned to normal levels later.
There is no available data on COO's expenses in Q1 2025. However, the company's gross margin improved to 68.7%, and the operating margin stood at 25.1%, with operating income up 6.5%. These figures suggest that while the company faced challenges, it was able to manage its expenses effectively to maintain profitability.