Albert G. White
President and Chief Executive Officer at Cooper Companies
Thank you, Kim, and welcome, everyone, to Cooper Company's third quarter conference call. Let me start by highlighting that this was the sixth consecutive quarter of double-digit organic revenue growth for CooperVision and the seventh consecutive quarter of double-digit organic revenue for CooperSurgical's fertility business. This impressive performance showcases the strength of our teams and the strong demand for our products and services. This momentum continued in August, and we're increasing the organic revenue guidance for both CooperVision and CooperSurgical, incorporating our strong Q3 and the strength we're continuing to see.
Overall, the challenging macro environment, including headwinds from currency, inflation and supply chain challenges has negatively impacted profitability, but has not reduced our ability to take share and drive sustainable top line growth.
Moving to the third quarter results. Consolidated revenues reached an all-time high of $843 million, with CooperVision posting record revenues of $566 million, up 11% organically and CooperSurgical posting record revenues of $277 million, up 35% as reported, up 3% organically. Growth was led by our daily silicone hydrogel portfolio and myopia management products for CooperVision and fertility for CooperSurgical.
Non-GAAP earnings per share were $3.19 and we posted record quarterly free cash flow of $217 million. For CooperVision and reporting all percentages on an organic basis, revenue growth was strong and diversified in all product categories, spheres, torics and multifocals and within all three geographic regions. The Americas was up 7%, EMEA grew 15% and Asia Pac grew 11%. This performance was driven by a number of factors, including new product launches, expanded product ranges market-leading flexibility through our customized offerings, growth in key accounts and strength of branded products.
Regarding product details, daily silicone hydrogel lenses grew 24%, led by great results from both MyDay and clariti. Daily silicones continue to be the main driver of growth for the contact lens industry, and we offer the broadest portfolio in the market with MyDay and clariti available on a broad range of spheres, torics and multifocals.
Within this, we're continuing to see especially strong growth from MyDay, including from the very successful rollout of the MyDay multifocal which is taking share in markets around the world. The feedback from patients remains fantastic, and optometrists continue reporting that our breakthrough binocular progressive fitting system is allowing them to fit the lens quickly and accurately. This success is driving a positive halo effect on MyDay spheres and torics, and we remain very optimistic about the future of this brand.
Clariti also posted a solid quarter with particular strength noted in Asia Pac. And our silicone hydrogel FRP lenses, Biofinity and Avaira, reported another solid quarter of 8% growth. Regarding product launches, we remain very active. I'm excited to announce, we'll be seeding the market with MyDay Energys over the next several months with a full launch scheduled for early calendar 2023. We've had a lot of requests for the Energys technology in a daily lens, and given the success we've had with Biofinity Energys, we're really excited about this opportunity.
MyDay Energys will use the same digital zone optics technology as Biofinity Energys providing wearers greater comfort when using digital devices, along with enhanced end-of-day comfort. This daily lens is a perfect product for today's digital world and another great example of CooperVision leading with innovation and manufacturing know-how.
And building on this, we'll also be launching an expanded MyDay toric parameter range in early fiscal 2023. MyDay already offers the most prescription options in the daily toric market, and this expansion will essentially match the leading offerings in the FRP toric segment, which will be a first for the contact lens industry. All this activity supports a fantastic MyDay brand and exemplifies CooperVision's focus on offering practitioners a wide variety of market-leading technologically superior products.
Meanwhile, we're expanding availability of clariti around the world, which will further strengthen relationships with customers using store brands. And I'm also happy to report that we've recently increased production of Biofinity, including made-to-order extended range torics and Biofinity toric multifocals. Demand continues to exceed supply on these products, which has caused supply disruptions, so adding capacity is great news.
Overall, these products and technologies improve how eye care professionals deliver clinical care, and it's allowing us to lead into finding standard of care, a core component of our ongoing share gains.
Moving to myopia management. Another exciting area where we're a market leader. We posted revenues of $24 million, up 42%, including MiSight up 109%. Our growth trajectory remains strong with the main challenge being in China, where all contact lens sales, including MiSight and Ortho-K products have experienced difficulties due to ongoing COVID restrictions. Outside of China, MiSight is performing really well, backed by its extensive seven-year clinical data and FDA approval, and we're seeing strength with key accounts and private practitioners around the world. We're also seeing a positive halo effect with customers selling MiSight accelerating their use of other CooperVision lenses.
For SightGlass myopia management glasses, our JV relationship with EssilorLuxottica is going well, and the team continues to make progress. In the U.S., we're finalizing the submission of the three-year clinical data and expect to submit it to the FDA in September. As a reminder, the only FDA-approved myopia management product on the market in the U.S. is MiSight, so obtaining approval for glasses has the potential to really propel the myopia management field forward.
To finish on CooperVision, the contact lens market continues to perform exceptionally well with estimated growth of 8% in calendar Q2. Although COVID-related challenges remain, including here in the U.S., where back-to-school eye exam demand is exceeding exam capacity, the many long-term growth drivers of the industry remain intact. This starts with a large macro growth trend that roughly one-third of the world is myopic today, and that is expected to increase to 50% by 2050. This is driving heightened screen time, among other factors.
Additionally, the shift to silicone hydrogel dailies remains strong, the penetration of higher-value products such as torics and multifocals is growing. The number of wearers is growing, and we're seeing price increases. We expect global growth to remain healthy and believe we'll remain a leader with our robust product portfolio, ongoing product launches, fast-growing myopia management business and leading New Fit data. And speaking of data, I'm proud to say Counter Q2 U.S. stats showed CooperVision was the number one company for new wearers and the only manufacturer to grow share in all 3 daily categories, spheres, torics and multifocals.
Moving to CooperSurgical. We posted a solid quarter led by fertility, which reported sales of $112 million, up 13% organically. As I mentioned earlier, this was the seventh consecutive quarter of double-digit organic growth, so a big congratulations to that team. Success was seen throughout the product portfolio and around the world with particular strength noted in consumables with products like media, for pets, needles and catheters doing well. Consumables are a core part of our fertility business and an excellent indicator of future growth. So we remain in great shape to continue delivering strong results.
Regarding the broader fertility market, the fundamentals behind the industry's growth remained very healthy. There are many drivers, but women delaying childbirth is the primary factor as fertility challenges start increasing around the age of 30 with a more pronounced negative impact starting at 35. It's now estimated that roughly 15% of reproductive age couples worldwide have fertility challenges and over 750,000 babies are born annually through fertility assisted measures, and these numbers are growing.
Regarding CooperSurgical's positioning, we estimate the portion of the market we compete in is roughly $2 billion in annual sales, and that it will grow in the 5% to 10% range for many years to come. In addition to increasing maternal age, other drivers include improving access to treatment, increasing patient awareness, growth in the number of fertility clinics, improved product offerings such as donor activity and cryopreservation services and technology improvements for both male and female and fertility challenges. Given the momentum of the industry and the diversity of factors driving growth, fertility is certainly an exciting market to be in.
Moving to office and surgical products, which includes OB/GYN medical devices, PARAGARD and stem cell storage. We posted sales of $165 million, up 36%, but down 3% organically. OB/GYN medical device sales were negatively impacted by heightened back orders due to supply chain challenges. We've seen good demand and positive signs in our supply chain to start this quarter, so we expect healthy growth in fiscal Q4.
PARAGARD is down 7% as expected due to a difficult comp with last year's price increase and related buying activity, but we expect nice growth in Q4 with an easier comp improving patient flow and an increasing patient focus on the most efficacious forms of birth control, including 99% effective IUDs such as PARAGARD.
Lastly, our stem cell storage business that we entered with the Generate acquisition this past December grew 1%. This was in line with expectations against the difficult comp from prior to our purchase of the business.
To wrap up on CooperSurgical, fertility remains strong. The other parts of the business are making progress, and the integration activity is going well. We expect a strong finish to this year and believe we're in an excellent position to deliver long-term mid-single-digit growth.
To conclude, we operate in recession-resistant industries with strong macro growth trends but we're not immune to supply chain challenges and currency is having a material impact on our as-reported results. Having said that, our core business fundamentals are excellent. We're taking market share. We're leveraging where we can, we're taking price. We'll remain extremely focused on the challenges facing us and will be proactive and we will proactively manage operations while maintaining a focus on delivering long-term shareholder value.
And with that, I'll turn the call over to Brian to discuss financial results and guidance.