Tupperware Brands Corporation Turnaround Plan Well Under Way
Sales Growth of 22% in the First Quarter of 2021
GAAP diluted earnings per share of $0.85
Orlando, May 5, 2021 - Tupperware Brands Corporation (NYSE: TUP) today reported operating results for the first quarter ended March 27, 2021.
First Quarter 2021 Financial Highlights
•Net sales of $460.3 million increased 22% vs. 2020, up 20% in local currency
•GAAP diluted earnings per share were $0.85 compared to a loss of $(0.16) for the first quarter 2020
•Adjusted (1) diluted earnings per share were $0.82 compared to $0.09 in 2020
•Net Income was $45.3 million compared to a net loss of $(7.8) million for the first quarter of 2020
•Effective tax rate was 31%
•EBITDA(1) grew 551% to $88.6 million compared to $13.6 million in the first quarter of 2020
“The strong financial performance this quarter is a concrete example that we are strengthening the foundation of our company. We continue to revitalize the brand through the expanded use of digital tools by our sales force to solve consumer needs,” said Miguel Fernandez, President and Chief Executive Officer of Tupperware Brands. “Additionally, we have made great progress building the team needed to accelerate growth in new channels of distribution so more consumers have access to our environmentally-friendly, reusable products.”
“Our cash earnings in the first quarter illustrate the benefits of the ongoing turnaround plan, which is creating a more profitable company. Additionally, the sale of non-core assets resulted in a sizeable reduction of our debt, consistent with our capital allocation policy, resulting in a prospective fifty-basis-point interest rate reduction,” said Sandra Harris, Tupperware Brands Chief Financial Officer and Chief Operating Officer.
First quarter net sales were $460.3 million, an increase of 22%, and 20% in local currency when comparing first quarters of 2021 and 2020. Average active sales force increased 16% and productivity was up 3%. This continued increase in activity and productivity of the direct selling sales force is due to adoption of digital tools and techniques to expand their geographical reach to attract more customers and bring Tupperware's environmentally friendly and reusable products to a larger audience.
First quarter 2021 net sales for the segments were:
•Asia Pacific - Net sales were $125.3 million, up 4% and local currency sales down 2% from first quarter of 2020
•Europe - Net sales were $126.8 million, up 20% and local currency sales up 12% from first quarter of 2020
•North America - Net sales were $146.5 million, up 45% and local currency sales up 43% from first quarter of 2020
•South America - Net sales were $61.6 million, up 27% and local currency sales up 53% from first quarter of 2020
Net income was $45.3 million vs. a loss of $(7.8) million for the first quarter of 2021 and 2020, respectively. GAAP diluted earnings per share were $0.85 vs. a loss of $(0.16) for the first quarter of 2021 and 2020, respectively. The increase in net income and GAAP diluted earnings per share was primarily due to increased profit from sales growth, realization of the turnaround plan cost savings and sale of non-core assets.
As of March 27, 2021, the Company continued to be in compliance with its financial covenants under its credit agreement with a debt to debt covenant EBITDA (1) ratio of 2.36 versus 5.36 in the first quarter of 2020.
(1) See GAAP to non-GAAP financial measures reconciliation section.
The following information was filed by Tupperware Brands Corp (TUP) on Wednesday, May 5, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.