CooperVision (CVI)’s sales in the second quarter ended on April 30 fell by 17 percent to $402.2 million, as the business highlighted “unprecedented” challenges tied to Covid-19 and the management warned that third-quarter sales could contract by 15 to 20 percent. The parent company CooperCompanies withdrew its full-year guidance due to the uncertainty regarding the impact of the pandemic on its near-term results.
CVI’s gross margin narrowed to 62 percent in the second quarter from 66 percent the year earlier while adjusted gross margin was steady at 66 percent.
Second quarter sales of toric lenses at CVI declined by 14 percent to $133.6 million. Sales of single-use sphere lenses amounted to $116.1 million dollars, down by 13 percent, while sales of multifocals declined by 9 percent to $45.1 million. Sales of other types of contact lenses fell by 25 percent to $107.4 million. On a constant currency basis, CVI’s sales fell by 15 percent, with 13 percent declines in torics and single-use spheres, 7 percent in multifocals and 24 percent for other lenses.
On a regional basis, CVI’s sales to the Americas fell by 23 percent to $149.6 million and were down by 22 percent at constant rates. Sales to Europe, the Middle East and Africa (EMEA), declined by 15 percent to $154.1 million and decreased by 11 percent in local currencies. Asia-Pacific sales slipped by 10 percent to $98.5 million, as sales in constant currencies were also down by 10 percent.
CooperCompanies, which owns CVI and CooperSurgical, saw total sales drop by 20 percent in the quarter to $524.9 million. They were 18 percent lower at constant rates.
In a conference call with analysts, management said that CVI sales in April declined almost 45 percent, before improving to show a roughly 30 percent fall in May. Markets that started reopening sooner have seen a quicker rebound, with countries like China already seeing sales growth in the month of May. Management believes the Asia-Pacific region could see sales growth in the third quarter, while it is likely to be a “tough” three months for the Americas.
In previous guidance for the full year released on March 5 along with first-quarter results, CooperCompanies had forecast currency-neutral increases in sales of 5.5 to 7 percent for CVI and 5 to 7 percent for the whole company. CVI’s first quarter sales increased by 3 percent to $485.2 million.