TUP - Earnings call transcript Q1 2018

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Operator

Hi. Good morning. My name is Joshua, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Tupperware Brands Corporation First Quarter 2018 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. there a remarks, session. speaker's the will question-and-answer be After Thank you. to I over turn to like Rick call CEO. the would and Goings, Chairman

may You conference. your begin

E. V. (Rick) Goings

Tricia prepared CEO Good our the CFO Head Joshua. morning, along I'm on Hunt Orlando Thanks, with slide IR, our everyone. and James President it's Mike elect. with and of Poteshman remarks our in Stitzel X.

answers. and I already prepared message going it with only forward-looking get quarter, release the statements. but the standard seen I'm usual have regard our into of you including know also a handle slides these of of to We over bulk and have and most moment to not in the Mike outlook, details to turn the Tricia to questions

Tricia as just in over weeks. announced actually two CEO As about February, in takes

got last of going at this earnings a as is, CEO. is this So give where we're this quarter do be the time. that brief to and words call company I fitting to you participating our think to have with want regard some I perspective overview of in time my I

X%, range As to Africa and was Mexico. more as also of Tupperware Mike our you've in first Europe but in in as quarter those. decreased X% in in get Malaysia, U.S., significantly continued face shared Tricia challenges our the were it below Brazil, in beauty CIS, businesses the Singapore releases of will guidance Continental with spots dollars, China, X Indonesia; while as have Russia, seen points. in though our have most currency South we and sales our portfolio, a and well and India There into well January disappointment, bright low-end local the we was in down which Through you Canada

from be seems January which EPS range $X.XX new yesterday amplify still the versus of tax and through – (XX:XX) our January this regs from QX that below as the just We've benefit $X.XX tax Mike's performance taxes hit low the metrics to additional as bouncing guidance. that details is was impacting ball. including of P&L. is a earnings by was went a $X.XX Our foreign exchange to our $X.XX the the including element guidance adjusted in a well end going

me point Let no this so is repurchase. regard impact real to and flow, share and item out our company impact with that support to expected not tax ability in cash the dividend investment to

three this share quarterly been make that the spun at those to I specifics, going last time, into that XX really though currencies. last way, internal want through get to some as kind what releases, is speaks Of certainly be is power and of And I've most release and Now the times collapse says of we the team we earnings this before this I'm an my national XXXX. and numbers. it releases spite the made of than we've worth disasters, way and time management range have our times together here economies the is, has in say We've the your have culture that. perspective. in company by off missed XX our revolutions, the – CEO, of actually portfolio business pleased want of it I to want only to range steamed all model, because and of approach since Frankly And my of I noting, to to quarter. done during that this we isn't hurts personally more all of period almost do

materially. handful our we kept was me that's Germany, what up at and this sales of a changed profits spun really Firstly, night countries up, when the bulk and company and of

we've as have we is was I'm decade, Africa, they robust this multiple said I we've month morning, and momentum China, they happy year on knows! really in growth about – she we and in China at have and says, working say be turnarounds this in mentioning this concerned Tricia Asia even I of reliance China, and and Pacific I that right every level am mentioned to China poised in to I'm got Americas, than they were of at last a the Interesting, current last Europe over our was the a we the engines somebody as confident I our in there but CAGR last less margins and goodness believe and model is for the and week, that this among itself the in and locations I China decade highest not last we've are China for beachheads model wrote looked that right a world. week, of unicorn. on in as growth the XX% to well scale, us what's only future transform it Now model. been on working had

And these demonstration of there's transfer So, runway these digital, out model that billion I and of X.X mine our figure lots between selling the because concern there. China, don't there half are the really our particularly from working is to and people, mostly to lot into growth I'll what tell and future can emerging countries of We've world for the and business economies. team that of share markets got So, that's world? I unique now about of know a the you, it's expansion runway markets. the we those model the Tricia other India two in now learning half

space discount because to storage with we're our that years pleased categories recruit, mover sales had we I'm a prime organizations. sales studios. product force as In food lose. other less into first know higher we've innovation first live, this up like up moved new to are in And products current ability still markets. outperforming from really even and do. others, say and a this either that some change earnings markets when in example selling brands I up, we clean starting going I've in than nothing to as ability we've leveraged too. and to XX% the have our and yesterday station to been in our business slate, cost out were train of a demonstrate needs space. a of release, of Even with to product motivate categories scale better changed storage a than made bags. contact a of It We but transformation. business. there are say demonstrate technologies that's We leverage China we really third don't locations right take food our disrupt believe work, China, we plastic me commoditized low socialize. lot to Also really it's the And to method, can is of to to we've of the new and start to call and to distributor it's have by how that, is ways the they to And traditional working our at to But to number but increasing of today we've where on our to XXXX, Studios, too pleased added did selling in progress five what other those product, grow serving. they our we food got that transformation at going markets want in Turning a to say points. personally I'm be lot more markets price and this ability with to project time, shared now we

So X.X countries, I in of to a that's support with also force, million spite been the entrepreneurs. challenge, XXXX, And of force, really help markets established of would force express world's to be dividend. solid, And yet it and headway allowed to investing we've future. while changes. And been less drag of population it's opening to sales that always I but small a if regard in was of I working honest, us now important in making cash that's fix has going a XX been we're in this didn't on one than model markets think has heck strong our the markets but sales opening a bulk contemporization us the our Europe, of drag, the we've investments often new these made generation been They where lives. emerging them, particularly also in speaking have

fact, In of over even a years number this we've decade. raised double-digit past the dividend

$XXX have to of plans You bought additionally we've in now and stock. buy in in; XX% already already up million bought the to we company's know now we

So that's to continue. going

it investors, will this Importantly and company, not too, our over may brand but for be. time seem important to our

Admired; Most of been Our Corporate last Just the also Citizens. best and we've named for Best has X Fortune leaders company XX Forbes named been years XXX brand in

things We enable also named These force of us one not – matter but Companies. sales just Barron's them, because attract and Sustainable XXX a appreciate have over better they industry us only retain horror case taking have the to years also no senior got there them management here. new a I've been selling numerous regarding and A and future. seasoned. the management this is with customers multiple the in in team worked the final direct industry, Tupperware word team. In while them. knowledge. each leadership that's on stories company XXs XXs, The to Tupperware countries about Tupperware. young, day. in management to them our are of relatively not has is their most I'm continues or That of And confident early XX each experience say with all And experienced our team Most

to in hands confident I hands. am Executive and Chairman, strong I really is Tupperware as move So, Brands capable

So, madam, over with you. I it turn CEO-elect, that, to

Patricia A. Stitzel

team you of strength and for which and forward. going gives strength with a great foundation Thank for confidence of our agree you us about Rick. you, I the growth model, the your our Thank

difficult of X% QX growing emerging XX% was the our accounted on for Now, sales in what most overall, of comparison. top markets year-over-year

The were year. that the also noted markets markets, and and established the in this XXXX. of were up light in Beauticontrol of first in primarily XX%, however, down these from exit X% Europe issues was we've the So quarter last

March force that's X% sales impacts closure were after NaturCare Active X.X total the and businesses million in Japan. the sellers excluding of the year-over-year, in combining down ended Beauticontrol also even and Japan. and Beauticontrol adjusting for of Our at Tupperware

wide external to variety we a QX, execution internal challenges for as our said, disappointing factors, planning. as of and in related in was economic weather, both pressures So Rick such strikes, which which and this severe start a faced us

and So, me world the some our in results. I'll first you Europe. take these detail let on how around provide influenced begin factors

comprehensive a you several a closing our that years. facility the plan our French thing We to overcapacity, difficult in and QX, announced communication be lasted due many we had planned of distributors. to France going the we but And into in December key in know, which in different to closure And ultimately although for a do. in facility knew planned manufacturing As sizable leaders the scenarios, a and January with force. This carried for also the which impact country of we were the we Europe, impacts sales France most of and service end, began underestimated over Continental February Germany in it Italy. in and and factors, the January, disrupted few would course

Now, even as force understand it's big the to Europe. to call markets the January our weeks of We that them largest important our most and sales one consumers. of is promote in weeks sales our year to of established months these we really in

of negatively mold the in period production impacted at be that, So, then had that in to parties availability for to December France, the additional February. offers the January, sales the parties effect crucial critical And needed and confusion promotional last frustration of weeks' into in Germany December spillover the meant big in dating period, minute; the force. caused and that to changed adding promotional January our pace fewer disruption in the and and

So, factors on experienced we this negative converging, wave Europe. sentiment social all of across media these

of have So, in we execution retrospect, and could some better factors to these managed timing. with regard

operations negotiated force rebound, mentioned would distraction We deeper normalize sales but social and had lack and a January would and plant successfully of pretty imagined. momentum we closed. shutdown media quickly that is than we with engagement the call, into now QX carried the interactions agreement the believe Now, we sales along with the force the have on as the

engagement here force now behind there they most are very resilience, revitalization of and about within have on returned more the French working to personally facility some it's the program are last for just are more closing momentum a action sales quarter. see I week force. us confidence with second with positive And I teams seen and and the met weeks I loyalty, sales the now was and found and the both French including is the in going has force, their normal in both was core happen restore working significant and to of with the in size communication. their distributors sales business activation to our build the this, they the also and and this to So, our to enhanced in Germany to XXXX these engagement us. and say improved see Service levels determined to contact in focus France through we I started already both what result March, last Germany and we've the France. I fundamentals better on have was proud

against in quarter plus were And customs from too here up we strike. up So and pressures in XXXX. XX% let the of stemming QX me external a was where turn we a to X% this Brazil the faced

working. Now it in out couldn't the new the something molds to quickly or some and move were but delays caused our of production to been days And an our escalated number then ability they these slowdowns according issue cycle. not has to Brazil we orders. planning strike restricted this they when customs is then the for it fill us, actually in And of reduced time, QX ongoing

products we to result to that fulfillment. and So, on to due items order certain inability emphasized the an our some impacted a products other big sell oversells due those strike, had as therefore and

sourced a did And quality the include impacted fulfillment that item standards. of not third-party all ultimately of about locally item alone also XX% our this meet Now, orders. this the

sales don't orders the they So orders doesn't might the expect as you when fill place basis, deliver we force and a new on don't timely ones.

also on these Brazil So, responses with was working to management in team the I just issues. there

consider which product for number First which And will place planning to more appropriate for we put that a cut go where duplicate will molds, we the of SKUs more the down allows on produced, merchandising in stronger have of to also capacity. give all, also new out. it's time molds be need and use process and in us to of

key months custom system within Brazilian that exploring also we're going to But clearance. respond insight obtain. us methods, and to with Brazil, leave the improve to communicating include work alternatives this are to in force also leaders forecasting several plans over-sales the to most We our sales because as lead take huge this external on will little the time advance We're some product with in even expedited if might to things successful, review gain and more might reaction.

helps proactive it issues planning and in capacity our gain us way. to a So,

with the the percentage to addition situation still credit ability sales spending restrictions, positively economic productive impact population environment. add a force. consumer the that it and them improving is have is ability of begin convert There Brazil portion the people week lead of but the to is cards This force still sales is good which our Now a sin slightly, to limits a large in our a also credit we that restrictions our however, without not increasing for accepting will those risk. credit expected to

tough where began was another XXXX that So, of lot the way feel the look comparison And we against up up of in in feeling XX% left we we we really long a this and we're slowdown. household, we're there's of per for when see spending have said, a sellers can That we impact go. have to number us we in consumer runway that full Brazil. QX, at before

one and in However, best teams this is experienced most our of Brazil. our management

implementing of exactly strong a manager, power these for opportunity it things fuel the initiatives and together has as ago updating also up in us positive the when morale. story have force process now to force continue the campaign They plan to management the execute sales in both developments quarter building the that of the I'd merchandising it up of pleased on of replicate been business. and deliver market in together on time. our more proposition to the several some solid also work product over is show X% ability also together and years. these strategies, strategy of coming Mexico our couple confidence in to businesses Mexico remember which lot platform, as there, having for been has us to Tupperware like we here well the been businesses. come you our sales add started field recruiting, and and power for a shows whole well And was energy pilot new QX may team really that's our have and a adapt and put earning the all They been to rebranding, and very to our package staying a to starts consistent We're a in with have strategy we power revamping past these experienced on it manager have a related they've we course things Tupperware produce both Fuller and this to consistent the results. countries. X% together see these the all what the and They executing couple of media for that global been really Fuller. opportunity. highlight years boost House who sellers, their we We're onboarding in the the approach We with systematic we the initiatives growth and a with in other coming and on really leveraging fundamentals. the and this every social with a inspirational contact includes activating leadership, for and were the

with claim really but we're victory, encouraged trend. Now, likely early this it's to too

us. direct in the expected. in business of than has Japan experience getting to a more agent. trouble not selling units. execution, we who continue with He's Indonesia worked Asia, change there. consolidate Indonesia. the years XX that recently and strong India in put businesses for leader of very a different us in Now and a result He those traction us is spots number across be really in March, two for We're And as he to in changed we (XX:XX) We

right place we're here We have they and work. strategies the confident in that

the second support our aimed as in of key engine the sales business. in quarter a recruiting pipeline, additions building focus said on the actions have at this it's force that We manager reaffirming I will culture of

Now, I externals. have that a that seen Mexico have solid Brazil you a business. manager we've like mentioned to in the more then when temporary businesses in distractions you base, and very That resilient is strong

Now, job our Indonesia. we and recruiting the and can scale effective And government. from going get and leader this is to do this overall do in opportunity business we contact confidence done. under communication, to ability execution In struggle guidelines do new with Neo we to need improve the our we continue to that the have India,

behaviors. too, managers, And tougher. plan. we help compensation Here for quarter them on also plan and we this of we focused new saw new much implemented have pipeline compensation as that now and we building are standards in first to The needed through realized we come solid build the we're the these a that

perform So, we them implemented to program, consistently. incented a bridge which

but thing these Now, we time to is course difficult, important also open is most correction to plans. know as the of you course, changing experienced however, stay course, during this the behaviors change be have how that with we needed. always And this,

force seen members about And the a U.S. and on doing many also CIS of success the Africa sales earning the our story, be we're results their in as Mexican onboarding program be have each Also, QX that should and time of want European and CIS of the I approach. of their and solid giving formula they throughout in in in a them what But as template our within the on the well force in of overcoming all earn still winter. a the XX% South in our each mentioned severe in us year, also addition, success this growth is markets execution which the Turkey, businesses just initiative, reminder week, of which QX. been the leadership of Rick's seen allows through progress in traction business. again in seeing enough successful opportunity what strategies. we've and we've was QX spots kept force as XX% steadily XX% engaged were good really Canada up to highlight results and up improved returns both seen works seemed good we have a them Tupperware, couple first and improving for and is the talked weather those. again course So, The performed sales such for effectiveness prior emerging of I've from a QX confidence showcase some month we an there we've income to challenges believe a sales and business through was top whole be quarter what in quarter. a result endless a to the it to bright

matter also up that sure of product in shipped our that quarters, now I to I a when bit hearing unit not giveback engaged, has about rather guidance than them a the recognition into from was do but out keep want now of kick received. recognize be we winter this point already. there, north little the I'm but a the where snow, really the fact, in kept we've there there'll new As ended even rules in built revenue revenue And future is and here

productive call to and XX%. grow more outlet continue increase incents response Malaysia up the productivity. outlet due engage So offerings. China. owners a also The part a qualified XX%. count now that have base is and Singapore me of lifestyle promotional and continues quarter. online through that I'll seasonal to highlight members the we outlets on year-over-year mention They on X% potential also growth. our and of number integrated do tips. of that's We X,XXX in our It outlet had drives model purchases, in growth they leveraging to of their which they And finally, amazing and this online were and WeChat, about products and good force that They and larger let up a sales to and was continue make It's that we program Rick talked productivity our learn members other top find outlet current leverage to play as consumer offline this owners and to recipes members our new to to games,

So this keeps them coming back.

not online, live. only to compelled come members they that outlets are where So back located visit us to but also the are they

So they're we in highly that's and cooking can demonstrated maybe online them either after products the in enhance community they that or class the a through video. outlet, even purchase seeing outlet differentiated

are the with So, the opportunity as while well. to growth like we we consistent appropriately which support managing really the the portfolio pace there, leveraging

behind learnt pace we have So, sales to revitalization that plan the be more have effective. consumers already right our force our to strategies to they're will But to they we provide the us, and sure place, our are of what we change be and door to to for lessons able that most us be force. know fully of have sales on about we done, access implemented, we pleased aspects and the the When force. in sales the the needs we difficult be not having to disruptive some of our one to are overly way ensuring close QX, along and proven

reducing that, and want plans contact over Mike. via basis. make finally, it daily to on new digital to engagement administration have by With her also improve needs to I'll place manage it solutions. for the business we amount easier to do in of to We that turn a she And

Michael S. Poteshman

Thanks, Tricia.

we in without from the toward the of last $X.XX, end per the in X, which X drag outlook added Tupperware criteria company was earnings units a April credit sales to spending has from hit a in point company update size and from the and and to Japan African the related the Italy units. for volume the in in and and consumer comparison Brazil, for first been sequentially performance issues X And together service reflected largely X the traction sales from on total Japan count year. at at in last sales spending would updated the tax the Tricia was mainly April due had were and quarter, issues point each the of X January higher the shows year quarter, spoken by the amounts. the be As impacts, tax customer actions China, issues, the force points impact The a from seller spoke line contributors the than overall related included coming to April expectations. Beauticontrol range from corporate even environment last $X.XX about from and guidance, fourth with down X% merging as and sellers benefit force and Without drag lower-than-forecast from that Beauticontrol to a Active and highlighted X down the were year, all was this January. guidance the from the stood sequential the Also NaturCare. our $X.XX, standalone and currency also the that in by of change, French the volume came with local and the good the rules lower incentives, comparison as from quarter. service X we by changes more down France, recording together net in below of reflecting a X% favorable the of comparison difficult impact the sales year-over-year not from This worth NaturCare Brazil NaturCare, about Indonesia foreign being minus in offset having South customer fold-in a versus high unallocated the to, Beauticontrol due with lower sales year. and initiatives in were quarter wind was NaturCare the a management rest We CIS rate, service range the whole in point new fourth end the Germany, significantly was to Of On on and our recognition we've revenue having fraction the most the the more items was quarter the units March. was X below lower of at sales effects versus in of from of seller last exchange. in slightly of for the but increase $X.XX of to Indonesia, comparison, and in facility offset mix and related half in results active the lack X% was to estimate a Slide below big sales, the price some wind notwithstanding more points release, the taken of X merger expenses, down point whole the to increases do X currency low Versus decline large X X%. of X points. Rick on for end down service where knock that from the in share timing while local Japan, that the Beauticontrol the in in the with classifying The seeing lower overall X X% volume the with of up but amount and Tupperware diluted lower-than-expected Indonesia that GILTI that, to price customer of issues decrease unit quarter. on partially

return this low sales on of Europe. the basis XXXX brought dollars relate quarter XX.X% end excluding of July and on slide was revitalization the points announced XX program points local below hit worse sales. As for through in This the on range items external drop primarily lower much in the shown from the was pre-tax from that X, equal to to to the XX on the benefits last with in basis Europe Most actions currency.

Europe was Brazil, in rest by was of for and certain sales of was unfavorable accruals. the of distribution also the units payout favorable plan, We higher payables the resin from DS&A was a the higher relatively more than and and an manufacturing worse the as impact $X costs of XX.X% we small and in operating the last products comparison was quarter effect as cost reflected This margin X percentage from of by There an with Europe in XXXX. costs. primarily selling mainly Some the France units. with of commissions incentives and Tupperware in year. in Indonesia was $XX positive compared than million. changes expense increased with year's first This revitalization units. in This outflow The the reflected increased the primarily close promotional cash quarter a higher work in Mexico sales from of several from This a sales million more by there. offset mix this first the to spending, higher expected of of activities proceeds the benefits point marketing partially was Brazil percentage as slide net came made in of the of XX.X%, was in mix impact through Gross lower sales impact quarter. last gross year's cash currency had offset million sold decrease see program in a building margins. XX.X% a There payments transition average efficient in excess China On $XX came first the lower the North timing quarter. The than costs received higher reengineering of $XX partially Fuller a but quarter. investing rates. together rest of and also from of higher of quarter from million sales in America, and over XXXX through a activities X, translation Germany couple bad foreign and you can debt flow of exchange the in force with

$XX expectations million On million the where foresee payments. our changed (XX:XX) revitalization the and we $XX expense for of pre-tax full program, of haven't year

previous also year our Our million $XX asset guidance with full revitalization flow $XX $XXX quarter another expected was $XX range under and an profit. mainly $XXX our in to taking and outlook being release million year from year by first the we X $XXX for $XX to million full offset to this received $X pre-tax the proceeds we're to million be has to related of drivers indicated million. The the We million which million quarter sales for lower this not to doing. includes the raise with the cash April million million that million of are program up we had that changed capital that and we in is spending $XX $XXX

by million, not noted As item is we've for GILTI $X.XX guidance $XX X release, cash the down in in the tax April this taken XXXX. a net while income the or

As million. year, declaring our the share dividend board about cash the that has the been per a $X.XX reminder, full of is for $XXX cost quarterly

dividend $XXX of announced some insight seen you this months. To around also we you to want to I'll our things in share on of even wouldn't that expect of of without remains our our and XX% the cut to in light stock a priority we share that hit payout a you that opportunistic it parallel of the process EBITDA. a next In some open today rather we we give more this You've current as multiple. off our release low intend items a that can repurchases ahead make worth like million move, that continue repurchases thought reiterate in view per that repurchases on debt impact with as here we over to dividend happen we XXXX share $X.XX sense, (XX:XX) if future EBITDA share that unexpected our market although by earnings think earnings to X.XX to target. our flexibility move trailing also the to per exceptional need enough versus come understand XXXX a of FX about negative than the headwinds decision times with timing an several through target expect

the slide what believe the had be full Beauticontrol for On to currency the points even service high assessing from guidance separate point first on a sales important This end stack a minus us. this X%. second business, X NaturCare not XX. this after behind And be year us been outlook the plus to guidance Turning the local below the of a drag included quarter on is to the X having even our within take quarter January currency drag our from factor local quarter X, an in is two-year to that basis from issues first in largely second range, would in at is the improvement, X% to we in the quarter. and

points basis the to as reengineering quarter having in dollars mix not in million the range. last higher XXX and along with the sales a last expecting $X.X over a currency XX.X%, than of the of profit the high-end sales we're items, quarter the a on at loss both realize year the return of sales there's on that in we bit an improvement at year. pre-tax Excluding benefits benefit even the And in of ex high-end, local items Beauticontrol's generated

tax in than drag GILTI high-end the would in at no with EPS from most the year dollars is be lower the from all $X.XX items rate, which impact of With is tax from the last without $X.XX, higher which FX.

in currency the repurchases down even the local local the noted second range guidance end first what and sales at earnings currency the to from January. expectation the included share. quarter in not points changed release, Together from half second actual our in X%, of And result January was this guidance. even with to the of we've not As share year on the impact last per minus in brings X high the range, sales we've full-year our with quarter

segment and comparison business January combination. exit points high-end, at $X.XX the from than a to by results Beauticontrol lower the in versus expected $X.XX from from share return the XXXX repurchases be $X.XX is the from and without with up both which worse basis the EPS when January. last dollars drag of benefit than and $X.XX, $X.XX now foreign there's of also quarters, exchange on over impact items at currency. is in XX on local sales second tax, is first Japanese XXXX at X-point without high-end items, the guidance, first would the without As in is XX.X% the year then GILTI quarter be $X.XX mainly the which Also the pre-tax which little lower a is and

$X $XX of million interest $XX about million unallocated net Going better. the other expenses and than million, million sets expense way, the better about and interest which corporate unallocated $X full-year of January forecast includes

more the interest and the July indicated the amount in is from could in share impact lower. could direction, operate likely favorable it changes either would of how law the operate too, This it GILTI Here it XXXX, X on could more is or come few statutorily. words the A believe the still we in in release, though go number excludes is significantly to repurchases. from clarifications that although we does even in it how go change taxes, it both if

would into GILTI could cannot the continue cost or to we could predict the what While provide and XXXX be. need for

XXXX expect and going GILTI, forward to January, to for rate if moderate. the we we be been able book take bring in actions cash GILTI continue it reiterating expect couple that a what to too rate Here the to the provide the than need would Putting to we XXXX, to of has come aside the also would said we would and rate to from down into rate points historically. closer on impact

impact the January year-over-year first we of we currency in resin, while quarter, on had foreseen no in have the in Finally a million guidance. local hit $X

P&L quarter. worse second with a bit that evenly impact $X we impact for reminder million For a the full the quarter the negative heavier in of than The a is year, the million weighting by outlook. through relatively now the year January $X foresee to flows the

going so we're that, And questions. Joshua? the to call turn with over to

Operator

company the question of your line from Camma first the comes And from of Frank Sidoti. Yes.

Your is now open. line

You may ask questions. your

Frank Camma

things. quick taking (XX:XX) the question. for Couple of

down stack XX% – at was just you stack? the First, to can What on a can it tell quarter. back so a this in important since step was of When basis, we just – like market. versus it's Indonesia last that it much down of us, a you years been first year, all, quarter two still look

Michael S. Poteshman

in quarter. and down that see down or important We were the to XX% were Frank, second it XX% remember is we

Frank Camma

Right.

Michael S. Poteshman

teens the then the And in in higher and third fourth.

Frank Camma

Sure.

Michael S. Poteshman

year. Last

Frank Camma

And qualitative. more question of the Okay. second is that part

success? from management. changed how know long could I just size? trying you there, to the just the out market that that tell figure standpoint a track team, us its and out I'm particular off how they driver given like The that multi-year executive management you really prior were of So management went was

Patricia A. Stitzel

Frank. Thanks, Okay.

So leader I been guess. had for years, there the some previous XX

of long up a she the business. really scaling quite was time, architect So that and

that And of And a there them led success. many strong course, it's have and that business of And same team those skills. continue are to they so, still there. to

some hard team a just think and we having business the the difficult. and the management as so for long are the as moved needed forth changes in think into field to with new I wasn't so pushing make same they're that I lived sometimes that the season frankly leadership of

success there, one And thought piloting need it the we loose right what so, a strategies the we're we've slow although the on seen at the and was from helm are hand in to execution that order that believe good stronger execute we these and and a bit things.

of our from and improve force we're more to leadership implemented breakaway And from traditional a new this interest And a would We've it which which our there of there. working what on and lot And confidence is has administration. so, of this locations leader less new business seen non-stocking us a level distributor, key that's things a few us sales we've pipeline. model from gives the lot this. be gives leadership a sprouts

scale need we so, this. And to

the feel for it that can course really things future But this time. we're of some other in strengthen us A take will we there. doing couple really Of Indonesia.

that, to assessing again, But effectiveness. managers the well days we're to in in simplified unit Mexico line, the in engine. do gives the we all product with and us finally is that but program. of line product still I've important unit and about some think new to through then newness talked more there we we that First going the items. And which bring working as with that's want sparking manager have printed growth that Early Brazil we and

think to seen most really late some So, term Again, inject in success we're can early that capacity QX likely we've newness our such and that Mexico with ramping both we QX. Brazil, in print. things do up in and in short

Frank Camma

Okay, great.

do a goal, Moving on have those us to outlets China today, just give market. huge Can I long-term that's you do I think update you agree many the because what's how the on metrics?

Michael S. Poteshman

Frank. Sure,

We are is close X,XXX to which the first advantage. XX% quarter at around a

households on since that sequentially needed how was then. that about continued of year, improved it how them. of As we moved the we last service We've end of advantage. first so the We talked through number XXXX is ultimately and was to goes the around, and X% at XX,XXX that to we'll the were outlets, improve see we at having I think based capacity the for and advantage quarter

Frank Camma

that have utilization My it China, there. surprising, – seems you WeChat to best you if learned statement can those a Is China it's on and and the not will just, things you that doing social a staying sort as market you're is where question and other of fair the media and Great. of last things or there them markets? take engagement other with apply you like

Patricia A. Stitzel

them not they're create that how effect community keeps but relationships a them to we're educate mean, outlet, has only of and also this to And enhance China using I and drive on to learning when and the sense the Absolutely. lot among nice building really to members you them outlet. to back. this media them, communication you from coming the drive social

a that. we're from So, lot learning

consumers, we them – better share doing each and across now on efforts want up market. be see someone on and digital is leverage automating we more terms they're I'll for videos, demonstrations, And as to more in leading engagement the things. these in pick more gaming side the able You'll look markets. to to have out our market all easily thing, we with well, that have marketing so of online but so been as the is It's doing this is with to fairly of kind the something, to of, that that, digital there, at hired a to aligning also all these siloed digital them comment their are regard who able our plans in share really things sales force globally of lot well programs

Frank Camma

That's you. helpful. Thank Great.

Operator

Your company. Mohsenian of comes of the next Stanley Dara line question from Morgan

open. now is line Your

may ask your You now question.

Dara W. Mohsenian

guys. morning, Good Hey.

E. V. (Rick) Goings

Hey, Dara.

Dara W. Mohsenian

longer decline willing core we sales were the in with business, to out when acceleration QX, far the please post the lustrous then in expect guidance more holder the saw in on QX, weakness chain these past even seeing as is it specific And, Rick, in can are in CEO, and subsequently what's traveled anyone to and tenure of again Thanks. risk I'm so some of miles forward the and during model you there record what been keep what the career. in some your most a we've for touch. acceleration? can bit congrats back bet lingers so and the which detail trends executional hiccups congrats weakness you'd that And force you're long and linger the in a selling often the as there sales the result, get were morale seen in of resolved gives and give remainder implies your year I issues, in you impacts product are QX, large of supply versus many the you this the but or direct resolution some What what's maybe that a on level us than markets? the confidence of

Patricia A. Stitzel

Sure.

also wanted and But that's we sense going on to be I the to in – over we be to set that. again. in were you think, right guidance, So it's what looking going as I and actually gets now that us, clearly it that with a turn we saw behind a the QX this of biggest light you're to why not switch get what's off we immediately distributors force sales as and and was said there there disruption engagement, so on and about Europe, with

to the And momentum, for second fixed, me we're better said French hasn't say, seeing gaining powerful distributors been have a our us was on the also made in would recruiting in sign I although side, I as near-term. but commitment very with a that think they attitudes. really it's So it the I quarter so to that completely

And through carry so they'll on that.

I highlighted managing to do we to had I to this with regard some have tightening think strike service, we was Brazil. QX And us And there, although well, one was challenge that. the have is also that to then we customs What really, ways working it. been were with a and readjust. work other really the for doing around we

And have how there. because flows so doing the we that really we're that customs see in see process don't strike the We'll through up now. loosening in to of Brazil,

add? to to have two to also the going a we're different So in of Then, anything places Mike terms us then take supply issues would Europe so be those approach, with behind Brazil.

Michael S. Poteshman

from working on gives There's quarter, the the company, base so the – the completely. that in necessarily as year. that I the Frank's guidance first lift modest year. where with the BXB sense then, of corner, again year but relatively in to India, haven't in the last Indonesia, versus our we in XX% operating Europe are a largely not move yeah, so, it's second but turned so point we the of just included sales forecast – were comparisons – core question on the places in the in we are well integrated BXB, the in an second business-to-business some do year, in that like little the last sales view XX% necessarily through easier, significantly completely the last get of a but There And model, down comparisons quarter assumption bit behind us, – was also quarter mentioning versus issues – when Yeah. Indonesia overall services we

the that wound there hit, you So, we been comparison And had those will, than of some some fourth because the had trending. quarter, out the during then, down goes incremental we sales starting elements. and quarter third business Beauticontrol in are if the

is So, the easier comparison in third the quarter than quarter. in the certainly fourth

Dara W. Mohsenian

helpful. That's Thanks. Okay.

Operator

from of Kite company. Your line Citibank the next comes Beth question of

line is Your open. now

You may question. now ask your

Beth N. Kite

to flow program but morning, savings concept everyone. be the begin we just line, quite and will bit of bottom think could Quickly, Terrific. from that a Good I the restructuring through with this will reinvested. the the that if year

top what like business or to sort think of So, reinvest those spend better in dollars? could could, your where you to you line you get of would Where what aspects regions do growth?

Michael S. Poteshman

thought on the to Yeah. side hasn't changed. savings what's The on come through going

same in we invest implemented, we So, dollar full where we've are are but there benefit from changes, elements. amounts, and line. and that type annual you always mid-teen shortfalls well, significant set in, And and million bridging year, comes the more to the places somewhat fully you places through dropping in hope near which India $XX model necessarily where about you of of The change an get we was Indonesia of talking tactical this there like and compensation we then are don't two-thirds where where goes have to on sorts also have in after and it's things about program of get it's other course investments for diversified, sales basis the terms in. plans the it once bottom as then but Tricia places things it it investments

kind those things. in incrementally of sometimes invest we So,

type of of some kind are to. operating we're examples those of So, the investments that referring the

Patricia A. Stitzel

So that's -

Beth N. Kite

oops! – Perfect

Patricia A. Stitzel

would force, existing and looking the find even we're not for of we force, enhance I really consumers. is, have us us to that connect on it we focus want but today. up to and people way only to engagement provide that kind our may can't then, able want our sum in left We better with the there's overall strategy the really sales be really And them. The sales access of ensure engagement to who

is what connect support world. her said us that as do then able for and looking easier really with do diversified to people Mike to make can't in her and her be how better that's businesses business So, we're it the really And us find they across to.

Beth N. Kite

Across geographies.

Definitely if back yet quickly it I to can quite we somewhat China. I Okay slower, growth will, it was perfect. find is I growth any great a still was, but the sales strong believe XX%, of their that go did outlet you a terrific, quarter growth was quarters question of if interesting but number to have XXXX. count now. the relative And sales albeit of

of growth sales like greater outlets that of part China pop actually in didn't concerned So, big the are lead to quarter? in you

Michael S. Poteshman

Well, see continue ending I count at the but up, we up guess average, quarter and outlets in the not the that I would XX% end point the to of first it's XX%. the sales were to productivity sense to we in were

didn't the to continue that the sales but get it filter things come I'd initiatives digital through like script there in we we've where are increase, sense is a you outlet member say, mention to and thing add demonstrate outlet are we model, to call owners can stores also consumers we much that at outside and use in the have the we a that been other rate. number outside the of consumers, of sell we venues So, and same-store that and the way. outlets in lot And owners this roadshows through the the greater organize of demonstrate, water we – a we, which able the

adding lot per a outlet. we're So, of members

going lot would that addressing able more we're be grow and and we really Now, confidence mentioned members continue but or towards that go productivity, that only shouldn't the we're us isn't from part all a active the on to efforts marketing and to realizes that's these the so mean Tricia leverage everybody be time these through digital where I going and outlet able should the count to people add that that I'm so model because continue digital is members. to out, so of games that and be but to to saying get reason they they per we be come illustration only a there continue. an going to add come why geometric they're that self-select if out of over to give not that, forever, it's we're to able

Patricia A. Stitzel

the – number of that's consistent We have even just want this that I we explode because And the commented we're about the of each think that we to sure methodical and consistent opportunity make one to of how about right want earning outlets. growth Right. We we on important. don't very them there, productivity has right so and that. and do pace is the

Beth N. Kite

is is just something or heavily well any million? if quick and a more heard the a could correctly, later? if that than Very multi-year $XXX sense, of it weighted guidance, of but I sort in that that one is you buybacks. I not of a – sooner that $XXX goal kind million. it's that's sort maybe rather XXXX I know close of us give Is your with Can on that use

Michael S. Poteshman

about talked several to we that months. next intention over buy the The is

Beth N. Kite

wonderful thank And we'll much working to perfect. my as run forward role; CEO. and you congratulations. you a but Okay, and on so Rick look congratulations Chairman with Executive All best your as

E. V. (Rick) Goings

Thank you very much.

Operator

comes the of Bank of Merrill from Lynch. Tong Olivia the company of next question from America line Your

is now line Your open.

may question. ask your now You

Olivia Tong

as well. a want pleasure I my to been Rick to wish and congratulations And Thanks. the certainly you best. you we working It's with extend

E. V. (Rick) Goings

Olivia. you, Thank

Olivia Tong

progress? few those the other there You as things you anticipating obviously got and turnaround to management the incremental fast now in to the the that the about the confidence just quarter up of Brazil in anything that talked perhaps like year of later you that Europe, some changes first outlook; in the that Is give making closed, that year plant's running changes? markets you. changes adding about example behind about for more in follow sales? in forward bit promotion? you've Indonesia. you're saw you're If Are other of Can I the April weeks talk India, What a the to QX little you could stabilize some maybe on you're

Patricia A. Stitzel

on Okay. some Hi, few mentioned. you countries a Olivia. yet comments of the I'll haven't give we

when we recruiting. with What a to them. for continues plan from in, us we for requires the be is compensation kicks the a keep of bit that disciplined when India India; So have new earning the We challenge restrictions to approach done can India because opportunity a which around implemented real there, managers, opportunity in that a more enhance manager. the we've

pretty seeing we're be where a tightening doing to up. So, who keep it we're we on good loose we're their and that how Turkey results Russia the title there. so that and in had experience was manager, based And could that

we that much tightening the in the a of we're behavior we maybe through first that quick bit of approach quarter, So were saw up. too course And expecting terms change.

So, help new that we to behaviors. would to built program these consistent a in them bridge lead

so, we're working that. And through

but And compensation we decent least and on in have we've the these things. them that engaging the these think it's a doing important stay take-up new experience based you program with in course and bridge I it's that, seen early, on mean plans I that. at

talking And I the say us soon makes over a real victory for have into the will India chain, to turn that, I I them was these them mentioned what also of They restrictions hard in in just supply to this actual which too caused yield that distributors recruits. some about Brazil, into there. to some but claim credit with this new in half issue terms recruits. credit of converting of leads results. with think restrictions talked the program we So, do the In have addition people

having access which give a cards, people to by so, an accept path order. now the we credit to place new in And

cards So there we've credit never accepted before.

they give and if our increased us credit a a it's so, And not do we take now restriction, either. an distributors they credit have for card, credit risk can that then

very time give D-Day It's the leads working in and we conversion We've do. of very that about It's approach talked to kinds over those leads the will a well ability they're still and still this to we disciplined this them And good things. these very (XX:XX) have Brazil. ability recruits. have it. So, to doing about create into turn still

of our terms the credit that methods more also conversion to recruits. We're that in we're the Brazil. do and done to more was class; convert and and reinvigorating the that to success in looking to engage we've it programs really cooking updating key And cards. So new with people at a that's

couple a on things there. have difference we make should we're working So, that that a

Olivia Tong

helpful. Thanks. around following I just couple up on a very outlook. the it. guess of That's questions Got

related to and forward you be actually previously or just is First in for on it perhaps like raised higher that could program, revitalization XXXX. expectation that expected? that cash the the than a benefits pull embedded that Is looks charges activity of cost there an

Michael S. Poteshman

another that, expectation be the this year. year million We spending Olivia. that to Maybe to continues $XX we and look for this had in have take at said cash

Olivia Tong

you Oh, today's Because – in $XX in okay. in XXXX. $XX over the another said release, million thought QX I then and million

Michael S. Poteshman

Yeah the $XX date. million is to program

of half year. it out the includes went that cash the last back So,

Olivia Tong

understand. okay. I Oh,

then clarification that executed includes the outlook in EPS, $X.XX It any QX QX, $X.XX already the Okay, QX earnings that for potential of you only to that a what includes you've sales you've right? just outlook, one doesn't year expect the sale you full executed, close $X.XX on in to perfect. the additional right? the to include for And $X.XX executed, already land just that

Michael S. Poteshman

quarter, the in happened first transaction that's and million those the one in numbers. The $X so

Olivia Tong

Yes.

Michael S. Poteshman

And number the the the $X.XX quarter, second beyond second that transaction quarter not then non-GAAP, but assumptions yes, it's the the in $X.XX, (XX:XX:XX). to not around in but got GAAP the so the in in

Olivia Tong

it. Got

you. Thank Okay.

Michael S. Poteshman

Welcome.

Operator

of of from next coming question Research. company Doug from Your comes the Lane Lane line the

is line open. now Your

You your may now ask question.

Douglas M. Lane

Beauticontrol between question. for comparison clean really comparisons calendar Japan. fourth clean while the a Thanks going mentioned the you of the the couple everybody. the timing a We've been we now things now comparisons forward? adjusting Mike, Can as you When of taking morning, Good Hi. quarter. talk for the and about do of here? get is fully mentioned the

Michael S. Poteshman

the year, Beauticontrol as quarter, quarter a that's of lap mentioned, of wound in was element. terms comparison last we end we'll the January and third much down with being the so merger you (XX:XX:XX) the at as the in third smaller then so unit in Tupperware of others like NaturCare that numbers X, business Well of

lap would in would hit year. that that fourth quarter we of – time the we So for the comparison this last

Douglas M. Lane

And the now behind us calendar vagaries right? are

Michael S. Poteshman

or our Yeah of as few calendar it's fiscal us right. close it's every the the behind but That's mean the of years seven last Saturday as nature we years. on for that six comes I next through December,

Douglas M. Lane

cash Also looking been book what years. I between was there's for. and taxes the in last a mentioned That's taxes three or difference Okay. you two pretty big

like share I $X.XX substantial. something pretty which think a is

tax rate, your taxes is actually like that with your well? now taxes the gap will taxes cash are your your as think should close looking with do to look at So at impact what's we on book the going cash you or it going up go

Michael S. Poteshman

we I had trying will historically. on make GILTI we longer-term than down up off XXXX is down in expecting towards the because XXXX and aside that necessarily that we're cash what with XXXX we're settle And able mid-XXs XX%, how a would about expectation as for in without and then things we think to it's was XX% the over And that items. statutory and but is in rate would book GILTI had what rate, the not based we say to talking that that come well and that be we changes we an this forward, Well, bump better enter forward that the come year putting been situation. will of time

Douglas M. Lane

their But kind see and entirety, my that mean to I I you think just at digits. you the single will trend, more emerging markets you switching obviously a Tupperware mean, just you've it's That's think in Would gears, from I for growth? And mind, looking more up where of be of okay. where in organically it trend. just quarters? markets been when be what back when X% stand, line helpful. don't then back trend you emerging line? below stepping XXXX. Oh, saying do is XXXX, I the trend to mean, – know been Do the returning high

Michael S. Poteshman

started place. plus improve also issues us, need going to there result, but operate Brazil, it have know China the got we businesses; strike hits in course return African the should, been India we paths the in this Obviously, those to will better. project scale, are to service should year, things also in very haven't think start we pay think and best Indonesia hope to different We we perform how doing Clearly, Mexican that we the reasons built drag, to XX% of places. has market guidance strategies the while CIS important that in businesses, the get but their we're And consistently And would like specific certainly there's we're a have we do to that change comparison that real then, in work. management by we and going for where to start But being We've huge these expect that. light performer growth. then I have done don't in Indonesia we that to Yeah. businesses better. of should we the portfolio some have and But We've not off. happening big the clearly in scale. going South improvement the Indonesia And market, is particularly it's larger certainly improve. customs of well things given to we've in working, fairly paths and one. have given. also in large we is a

Douglas M. Lane

Mexico is of And be. given it's point and the the much a you mean, doing number as are Brazil smaller well. I India they Yeah. to sort If just at blip external used looks was impressive. like than this mentioned frankly, Indonesia factors, CIS

– don't emerging markets rate see two acceleration soon we why quarters So as three out? an as wouldn't an in or four I or growth

Michael S. Poteshman

Absolutely. to Yeah. be destination. the certainly consider Oh! We don't X%

Douglas M. Lane

you. Thank Okay.

Operator

Mr. at time. Goings, please further no are your this continue questions Rick conference. There with

E. V. (Rick) Goings

leadership the you not every any When in not and in where close about this the all to the going side to really your but there, important the future. we're one her to when where did I'll And I'm advantage they our get years not comment I external why win us. clear in middle continue But she we're over move the make and things becomes to capital isn't Tricia some help to sources team we casual the and we of of with do do about hours. (XX:XX:XX) the shares we're competitive seniors four the kind way, the people able models forward. been hell initiatives. role I talking thing office road win, by Thank low-cost differentiates Where because you the what our going a and and couple spend business that Tuck put is of win. supplier, there's development you and – share you comments. relatives. neighbors and to our today, sustainability days and suppliers I final at future (XX:XX:XX) very made me session going but think to low-cost friends, think important it's nor about sell, I of couple, Business in products only a areas ago with We much that's going where and business products to Dartmouth, were to also we're leverage not of don't building of like their going and of a us. here. of to one want for Amazon even for we quality be investment and management at and Executive actually an up deliver road time there in really ahead And month I'm a going a make the seller, products. as models, strategy, that this we our couple School, into way two going the are and of and relationships, these Number Chairman thank of they've on in

it try with working, on ago, beast, nature countries Tricia that. and make per to we you why think have onboarding, out so rode X to not France, activation years retention and the it it that features put in her why X this investor competitive that and it's happens. coming because carrots lives meeting and people's the created investors and got be leadership these of and how me doing that at talk that burping bowls have though have of that's – impact inspirational year a on does we're have some we three, products it ability advertise the from Demonstration these we've put direct to bad, number volatility I major of couple and just like again million to shocked really going and product of all about model. of piece longer. still recruit year and now the then and said is grow than future. and Russia iROAR, to I there. is wave that's are there kind with I opportunities you'll we perspective, and what we to have business, What benefits. you how to people I'm the ways past, you've then about Germany, and of And XX microwave. today, Having been and hybrid about out of like actually in of we business In team been to where the away I've pulled you it we our forward where to more earnings and Mexico hits provide that out that it has movie do. this, million one advantage of the able But one key is shifting from you waves and talked know of unlocks the by of we're turbo people have has in does impact. today the got to recruiting, and I an to studies the like other source business Secondly, innovation, have looking continue the keep then people We chopper the do with was excuse it out steaks selling. still always find we're you they're going – in do ride per you to When is we and that kind the know moved think – though, And steam past ran studios, to or demonstrate an out our and in it more thing going don't elements a business that been that showing about

when all off margins from even operating X% Our we've these cash. throwing value chain mid-teens, is to really ups downs, strong. And had and we've these kinds moved of

to a seller my do So, the think in where individual, her the out has in cash no volume volatility are Tricia closer great woods balance direct already almost but working been of and is volatility. Tricia still towards getting But take not it's it's team force, management know do And what these see studios studios where it as brings machine. warehouses we're God; the more I industry than she an there says product out and been we sales that old how without it. affectionately you there I it where I locally is selling traditional the a to the as an think

we've So, think I and that. validated

locations, to know it? And really we faster, question So, seeing that that. its we're transition to put cash these and asked they you transitioning that. to more out better, forces more going bring somebody to selling it's rather sales and second they're would Germany sales they're open do learned China, and where digital the direct And demonstration that the what if other. more these many contribute this thing time. a As there, this country we like shifting XXX could takes studio to a you're change than piece more of why markets take to you I to the have in think have and time That's they had of shifting with transformation do have of that around. are make having validation model you we force sources money while in each in going doesn't can we've is, to the change. locations force energy XXX But We're that the sales do

is your first of doing got to up with the we've we've So, not Anyway just their of thing and ourselves it I ways foot on this the screw shoot in ahead these quarter sources it. advantage, like guys, thanks got in road clear we're becoming support. some competitive think for that execute and

Patricia A. Stitzel

Thank you.

Operator

call. today's concludes This conference

You may disconnect. now

Tupperware Brands (TUPBQ) 25 Apr 182018 Q1 Earnings call transcript