Tupperware Brands Q2 Sales up 4%

Tupperware Brands Corporation (NYSE: TUP) has reported second quarter 2009 sales and profit. Second quarter 2009 sales increased in local currency by 4% versus 2008, before a negative impact from foreign exchange rates of 14%. This resulted in a GAAP sales decrease of 10% compared with 2008.

Chairman and CEO, Rick Goings commented, “We are pleased to report another quarter of local currency sales growth in spite of the macro economic environment we are operating in. We delivered top line growth in local currency in all three of our Tupperware segments and Beauty Other. Our emerging markets, which comprised 51% of total sales in the quarter, were up 10% in local currency, and included a significant number of markets with double digit increases, including Tupperware South Africa, India, Indonesia, Malaysia, Mexico, Venezuela and Brazil. The established markets, while down 1% in local currency, showed significant improvement in trend versus the first quarter. We achieved increases in a number of these markets including Tupperware France, Italy, Austria, Japan and the United States.”

“Our management teams around the world continue to drive sales growth through various programs and incentives that support our sales force and the earnings opportunity we provide them. We were able to achieve 56% local currency profit growth excluding items, which was significantly higher than our local currency sales growth, through improving our gross margin and managing expenses while continuing to support our current business and investing in our future growth and success. In addition we generated more than $100 million in cash flow from operating activities net of investing activities in the quarter, enabling us to pay down all of our revolver borrowings and $20 million of term loans,” said Rick Goings.

Diluted GAAP earnings per share of 52 cents for the second quarter of 2009, down 4 cents versus last year, included net negative 34 cents from items impacting comparability. This included non-cash impairment charges related to purchase accounting intangibles of $28.1 million pretax (41 cents per share) partially offset by gains from an insurance recovery of $10.1 million pretax (10 cents per share).

Adjusted diluted earnings per share of 86 cents was 24 cents better than the high end of the guidance range given in April. This was also up 11 cents, or 15% versus the prior year, overcoming a negative 20 cent impact on the comparison from foreign exchange. The increase versus last year came primarily from an improved sales mix, lower promotional spend, the benefit of expense saving action plans and lower costs of procured items.

 

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