Tupperware Brands Corporation (NYSE: TUP), a leading global consumer products company, today reported operating results for the third quarter ended September 24, 2022.
Third Quarter 2022 Financial Summary:
- Net sales were $302.8 million, a decrease of 20% year over year (or 14% on a constant currency basis), compared to $376.9 million in the prior year period.
- Gross profit was $196.6 million, or 64.9% of net sales, compared to $247.9 million, or 65.8% of net sales, in the prior year period
- (Loss) income from continuing operations was $(3.8) million, compared to $60.4 million in the prior year period
- Diluted (loss) earnings per share from continuing operations was $(0.09), compared to $1.14 in the prior year period
- Adjusted diluted earnings per share (non-GAAP) from continuing operations was $0.14, compared to $1.19 in the period year
- Adjusted EBITDA (non-GAAP, per debt covenant)1 from continuing operations was $29.9 million, compared to $77.7 million in the prior year period
- Consolidated Net Leverage Ratio (non-GAAP) was 4.17, within the 4.5 debt covenant limit for the quarter
The Company continues to implement its Turnaround Plan; fixing the core, right sizing the business, divesting non-core assets and
opening new channels of distribution.
“While we are excited to expand the Tupperware ecosystem to have some of our products available at a major US retailer early in the fourth quarter, we faced internal and external challenges in the third quarter that eroded our business economics,”
said Miguel Fernandez, President and Chief Executive Officer of Tupperware Brands.
We experienced decelerating top line trends in Asia Pacific and North America, and continuing declines in Europe given ongoing geopolitical tensionsand the difficult macroeconomic environment there. These trends were partially offset by continued positive sales growth in South America, where pricing actions have more than offset a modest decrease in sales force activity.
Additionally, currency headwinds were more than expected given the continued strengthening of the dollar against most major currencies.
“While we continue to make investments that are essential for our turnaround, we remain disciplined to ensure we are focused on
meeting our debt covenants, while making decisions that we believe will improve long term profitability,”
said Mariela Matute, Chief Financial Officer of Tupperware Brands.
“Given the revenue trends year to date, we expect to take additional restructuring actions in the fourth quarter, as well as implementing stringent inventory reduction programs.”
Get more information, facts and figures about Tupperware, click here for the Tupperware overview.