Tupperware Brands (TUPBQ) 10 Mar 212020 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Tupperware Brands Corporation Fourth Quarter 2020 Earnings Conference Call. [Operator Instructions] Now, I would like to hand the conference over to your speaker today, Jane Garrard, Vice President of Investor Relations. Please go ahead.

Welcome to the Tupperware Brands fourth quarter 2020 earnings conference call. With me on today's call are Miguel Fernandez, our President and CEO; and Sandra Harris, our Chief Financial and Operations Officer. issued fourth release XXXX. quarter we results our morning, the for ended this a announcing press financial Earlier December XX, press on our available release Web The on site our Investor company page. Relations is

with begin will statement. our We Harbor Safe

will SEC the that forward-looking filings. uncertainties described are During release press and statements in risks make our call, to and of today's as course we subject in our

today's information. listen to call should context that in You of the

in basis. Any prior the periods to local will between as period. also sales exchange rates found of currency between period some adjusted is on can current the results exchange GAAP foreign Reconciliations compares We discussion non-GAAP this if measures our results have and quarter in today the sales, a for in our referring reference discuss been also be which press rates to release.

release replay his statement section you can our over webcast a of You for call turn to will the Miguel company call now through Relations can Web the and the site where later today. of the access Investor I remarks. access forward-looking this also language

you, good morning, everyone. a path In Thank to modernize Jane, company. we started the XXXX, and down

for day, our unlock defined putting growth every reusable to we new initiated improved with the and cash a XXXX. on our debt. our brand. flow and excess sheet, us center. front a key and rightsized and our and We friendly, nurture environmentally better reorganize business purpose team leadership Let summarize of $XXX million. new me strengthened We strategy And message gross consumer balance our wins in power savings We revamp cost in of started We our executing the refinance company. restructure to future acceptance our

prior of the in on of result have have quarters, in XXXX. achieved changed improving this negative With we unexpected believe of turn last of deal COVID-XX we'll the company. quarters disruption performance was way a with years. an to we’ve around performance, sales trends that XX% now our the growth As two two we to

negative in to $XX To at use force estimate with positive their and which more new on negative have the time decrease made the us, off prepare overcome awareness pandemic, needs. line their In side, minimize due XXXX, to around products But cooking other use products world. tools of more home, digital the our and trend the the restrictions. kitchen, consumer been restrictions these an top a materials. home consumer to related and see emerge of pandemic, the single adoption about food, waste food force of solution we On closures a front a to due more methods. led we impact Tupperware staying more were accelerated and people to sales global for million to

result, modernize they've XXXX tools, in hindering a media the digital that demonstrate able their neighborhood A leverage was reach physical and growing not of and reach utilizing their to products. reach in By platforms our customers realized they able online been us a As key social factor how they business. and network. how geography our shift their to social longer beyond expansive were for they strategic force their and sales service was innovative

accelerate the as increased digitally move greater XXXX. We more a productivity it XXXX we're confident While is in can and and selling we still in embracing growth and sales force widespread methods, success early gain with engagement in our we other tools adoption forward transition upon will initiatives. to the digital equipped build enable believe

of currently The increase for our situations, sales the sales backlog sales quarter, U.S they more our fourth productive U.S during continue of the new and backlog This are the tools of $XX increased embrace in a it. selling key highlight without force our and me digital and the testing dropped efficient XX% [ph] company's service few sales million. of markets, Let because Canada growth, In quarter markets. Canada demonstration digital to attributed XX% leaving party improvements XX% tool. online

continues whip needs of innovation fourth fertilizer We and average product active vegetables Mexico to Our to two appeal a electricity waste. which use targeted program quickly promotions. including grew a fertilizes manually hand quarter, in X% quarter use for contributed healthy force. mix X% without the of mixer speed easily. preparing growth fourth feature consumer energy which reduce mobile sales our We enhanced efficiently the Mexico food and of Tupperware the products and the the two apps and can of increased sales in in a had

new new be JD.com We're on of at Walmart that. will help PepsiCo, end our was coordinated Ken's Vietnam, strongly to strongly products with a into of studio bottles Two experience believe, at contributing in to in merchandising, believe accelerate new use We from before studios food decrease bottles, top focus products joins to quarter, happy us year Brazil, through China, and retail sales welcome who to he for PepsiCo. transformational us, our we driver market A key President expand storage. the expand demonstrating quarter product communication. as entertaining channels. in a the on-the-go products new presence contributing included brand sales to products. achieved And years fourth a water China China, future number Prior lunch lastly, has the outside three our could around XXX new category well. Brazil key a growth cup The We his eCommerce XX led Yeung, the The XX%. including and product and data, kits. increase us contributed strategy. and XX%, to which a categories spent in Ken permission products that X,XXX. category, on-the-go businesses on-the-go similar and Mexico were factor China, was and to increased declined as During of plan In coffee just [ph] sell to of for innovation time ethnic us sales water our

markets the business, Cuesta, better and we and will two of lead To expand accelerate this to our consumer business new of resources help expansion. our data selling the XX over digital the we in core. we XXXX, reach direct has announced our directly to our and products opportunity organized that and around selling to focus choose new centric With As focus existing our who we direct internally and will President availability sales against experience decisions, increased years experience us recently the become regions our drive the categories improving help transformation world our includes do. they the realigning will for pushing customers productive, make Worldwide force future. commercial We've continue and create into purchase. of priorities into seamless traditional new on force analytics to are us use business products in in Commercial running sales and to omni-channel mind, more Patricio given our efficient a where to will move our expansion into and attract and excite ones. efforts This we that consumers our streams, everything

deep President, model. execute profitable With business. that Lezama, business leadership confident these and selling international create of in we support lead direct ability our efforts, and will more we models the believe various our team Business experience sustainable Expansion Commercial our He complement our Hector can omni-channel to developing a new priorities. I'm brings strategy. on in

our data set more Tupperware the priorities We and driven, focus in channels the our the will company into different direct us create current shareholders new software of by brands to expand be avoiding conflict skill channel these years come. categories, and/or Our with XXXX the where introducing give in we meaningful to of selling distribution, value penetrating will consumer to potential permission for be execution explore a to product enter. believe know for

turn over Now, a to Sandra our call Harris, COO CFO review financial and for the our let statements. of me

Thanks, Miguel.

move right the improving In firm established Plan structure, obligations, organization XXXX is underway. centralizing XXXX, and the foundation and well cost refinancing control through now as and we Turnaround accounting liquidity, our finance environment. Our debt sizing by strengthening we XXXX the a financial accelerated

posted majority America markets XX% the sales X%. increased South increased year. quarter America with fourth in XX%, our quarter, Our increased North compared Europe The improved last and XX% sales improved of

X growth declined quarter XXXX down the we markets important in the have last the China strategically new weak into with coupled growth. the carrying second with and third and trends XX% half, declines. Asia higher drive in believe and in resulting significant months, COVID-XX, and for from the year year In with established sales quarter, of X%, leadership first X% impacts XXXX. that quarters, second sales the first will quarter The the finishing the pivot was high we major started both with contributor. most future in the Asia quarter, In a in a was than fourth high business single-digit evident sales teens the the declines of

net If Plan low strong to with X growth hold. you Turnaround the exclude the quarter We XXXX. of are comps easiest to revenues have first would actions in by of this mid compared XXXX, take performance are COVID-XX, seeing we that is in teens, of And our evidence impact completed believe to revenue continued prior negative exceeded X%. our the months in the the beginning

the $XXX XX.X% package of year to but the $XX.X achieved demand. of operating related overall profit favorable reflecting our small to cost XX.X% increase bonus even margins in costs. our considering Gross from improved lower and quarter, significant was versus basis XXX points our a regions all XX.X%. Turning of shift can resin before Three performance income sales loss or quarter XX% This points return savings, an were and points points XX% company reflecting million due to prior X,XXX more over adjusted million margins. adjusted taxes of distribution is in margin revenues segment primarily improvement basis volumes. sales, small our efficiencies of versus basis were expenses XX to a basis in percentage of the and to increased profit. representing the quarter, Turnaround sizing Canada right million. Overall in cost $XX.X lower impact Adjusted to improved higher improved year. excess points improvement cost of XXX manufacturing our year-over-year, higher while improved of U.S on quarter, reflecting in the now Plan regions last as accrual XX.X%. for the XXX to mix North benefits quarter an XX%, country reflective of segment progressively sales profit savings. in in to points order are the basis returns the XXX% surcharges, SG&A America ended of delivering and a due The attributable from sizes XXX basis at

a tax Before take discuss address rate, the effective rate XX.X% EPS, for I abnormally let me high minutes few quarter. to the

from was year XX% effective tax credits certain As was on high also to offset used we would for our credits the the rate gain assets during In XXXX. due quarter rate unusually foreign liability the extinguishment. our of from the the and tax our events tax of associated of benefit the the call, rate to rate QX operating In tax tax with year quarter, to of due significantly related expected the non-core full retirement the and debt. debt improved XX% GILTI timing we non-operating sale early XX%. noted in fourth third to XXXX, tax be the lower The

implementation Turnaround our strategy the XXXX. effective of result the for X-year an in overall even range, of in As Plan, mid and tax we we will that XXXX a lower have started in expect rate part tax XX%,

the expect quarters some various of within timing the sales volatility ongoing mix. operating based the in and You tax country non-core can asset on rate

Now to EPS.

last benefits For $X.XX, The Operationally, year. a Plan GAAP taxes. EPS versus improvement on of the and Turnaround quarter, cost profitable $X.XX and in higher expenses diluted the unallocated reflective from $X.XX non-core and compared a of $X.XX quarter, growth of operational EPS gain by sale in loss of savings, assets was to partially a is adjusted loss the the XXXX. offset

cost of savings the in due plan. incentive annual incremental we our exceeding the Plan achieved the accruals operating While $X.XX to original quarter included Turnaround quarter, plan

Mexico the in albeit China pandemic surcharges quarter to be received impacted the the inventory the $X.XX absence We grant the related lower of Additionally, quarter negatively XXXX, of that received $X.XX related expect will a of do fourth in EPS. reserves FedEx $X.XX, first grant in for additional government normally at and amount.

to adjusted discussed EPS was would operating the XX%. this mentioned, can of If assumptions. by The expect tax $X.XX on tax the as normalized work, level the affected quarter million impacted we at of items last is in rate of EPS an these would the those in current at indicated adjusted million, we higher reassert assumed Based $X.XX. by for quarter heavily a a that tax unusually for of rate. XXXX. an $XXX another tax of and anticipate Additionally, achieve XX% of or EPS. range high $XX the tax $X We were XX%, sales $X.XX rate We versus have that items above $X.XX quarter delivering results the the we rate by timing quarter's EPS our the been at strategy an $X.XX, adjusted operating

cost Before we with goal. than million our almost delivered $XXX XXXX we prior $XXX planned million income our turnaround of for discuss balance $XXX of strength the net as year, sheet, savings better the million

expected to in XXXX. reminder, As are annualize these XX% savings a cost of

related were sales be required and As some the reinvested support of growth. will to savings be XXXX pandemic to

address capital cash improvements and was million efforts our our our improvement to XX last inventory an reducing representing the million structure achieved in strengthening now in turnover Improved and profitability $XX associated me days XX $XXX year-to-date, the in $XXX flow debt. and liquidity contributors. improved with capital Let were over XX Free major of from a and and XXXX. We DSO year. working improvement million quarter

product free non-core in look do included of $XX expenditures we expect year expect sale $XXX million. X.XX and to our well assets And levels last $XXX a accelerate to we in you from was to X.X. million year. our of $XXX of covenant versus with return and million XXXX normalized debt spending XXXX. We $XX.X hand. cash successfully to ratio offset capital December, therefore XXXX cash retire can $XX innovation, we the requirement as of loans last by Additionally, capital with of EBITDA million balance we a senior believe proceeds to XXXX, term million quarter, year, flow million debt on similar partially two the and $XX.X the remainder versus our the million of end X.XX% At notes to million $XXX ended of X.XX below In

we Shlain As Turnaround we third for through XXXX, exiting a plant February assets. sale XXXX. Already million Plan, divesting in quarter in part we're completed to non-core approximately receipt of of Avroy million, sale on and closed and our XX France With US$X.X of business the the the $XX of committed spread for of on the proceeds

use regarding February in will ongoing to we eliminate the further debt, We balance non-core excess strengthening Orlando. of our proceeds to our sheet. XX, On filed X-K land divest an plans

the our results O'Connor We We $XX real to divesting today that continue rightsizing to working, our future estate that and strengthening efforts with Orlando the turn restoring support to on work the remaining others proof at business, million. initial valued the reported core to are believe growth. provide balance approximately around sheet company group, our company the or growth

competitive I update. will turn for more creating stronger, we another a the company result, Miguel call back now to the are for we a As believe future.

of whose we appointment Thanks, effective these execute turn ability call excited strategy. March over announced will members will Today also and to our believe now I growth the experiences new new three Q&A. Sandra. strengths We're to X-year our we three improve Board add to XX. back successfully members the

Davidson. from Your of Bolton Instructions] the line Linda A. comes first Weiser [Operator D. question from

ask now may You your question.

expectations. first strong Hi. question Congratulations top our the growth, on strong did and guess was quarter. has How quarter with it which a line I are you? in do my to exceed very

closures from any well. talk slowed. bit that Europe? growth the it who However, of And you Can where the as was like little market about in a Asia, And was actually area looks also whether or it did was particular -- in was difficulty] a the third third the Europe pandemic quarter. slow [technical mainly kind quarter

So in China was you. something that Asia? than other Thank

Yes, Hi, Sandra. is Linda. Thanks. this

almost QX, $XX Europe, in for that was QX we QX. happen So BXB predominantly between not had difference business. the In BXB to QX related million did of and

in that's largest And so difference the Europe.

in growth then, and what And actually I'll APAC, to also expand same the the let Miguel Europe. and improved we're look for business, you If profitability the was upon core the China doing relatively of we in parts we've do made in have an had impact, challenges Asia, on both choices there. locations, but other still And specifically in Yes, continued leadership. Indonesia. some strategic maybe

to to So that about Miguel in over I'll we're Asia. talk turn what doing

Well, Yes. hi, Linda.

biggest So, Sandra leadership challenges in markets was APAC. We saying, we facing markets much in are APAC. various the announced in pretty changes recently in

five or were them. there think them of four I of

And The big Philippines got market by that, we than mainly ones COVID. type retail that that were the other that were are appropriately hit our we are working, have APAC of and by that COVID other one the because we got in we need one that to But talking right a have with that in which and impacted have so model, we about strategy. countries consistent the we've greatly those the execute was other countries. those know in been players, can

gross can about Okay, to -- you little capture better, you. talked more of be out so, you pricing And if XXXX? fourth good, kind performance to gross bit starting just of margin implementing in talk a quarter. to would mean, You best very a strategy about more then Are consumers. here the in had in you've that that good margin expected thank impact XXXX? I And going kind

in we what So along that those in can line kind -- XXXX? expect of

in gross lower, momentum And a positive able been we already we've positive it to bit started and response. gets some with a the with offset little So even seen some we've the higher Obviously, margin but lot pilots of world. around volumes. more cases,

lot And because did becoming that which efforts, is relevant price hands with the are experimental we're with making the that products -- actually our same we the points, even of sales in consumers new force around key world. for which achieving single more is a factor of was money every us. important So getting one more more amount up to pilot this ends

is excited something so obviously got very And we're that path, with pilots this do. the we've but learning exciting, very to we're going to So us far. that run continue and through the

able margins you. across Are actions Okay, forward. around and looking nicely, XXXX, But kind cost going of I more board. reduction you've reduction kind thank Or in really to on looking come done ongoing that term? another that you're there? margins of there you've your longer cost really there at? are Or talked about additional program? you very great at And being like the looking the maintain then And the mean, you're at Thank actions of are kind additional what productivity? thought you. what's have maybe

Yes.

we cost Linda, is into of the talked carry about would savings annualized. So, and that XX% XXXX

come The other back programs on and related COVID. from relief that in reductions nature incentive were the some we to see that and start largely to start XX% things as furlough to and will other of travel trips

did we XX% that into for of back come So assume XXXX. the that businesses would cost

that we that the we've reiterated thing need think invest I do is to other in business. The

we're this SG&A And And that to high. quite that excite our need growth make continued continue forward the very really expansion that to the we'll want make consumers. that our in working are so, have continuing and very are future this focused that investments realized is digital to what quarter. to And, We be investments With new percent the working investments frankly, we that's great cost business, investments strategies making other of offering still the products savings and committed last carrying that in efforts. said, are business we're on we on. that that do through also to we intentions our we the contributed half year, we're that in the

can. And the leveraging we so, to we're on focus business throughout continuing where

have working the business to separate services we're up effective initiative able do that we the the and functions organization We back cost scale board. world, leverage around to geographies those that and we'll be global And expect end we on, across been stand at from more different end three we've as functions. a in to started front the costs a the starting efficient and

that had we this in year chain. supply know We challenges also

And is whole we by the to we're committed impacted so The can. the surcharges. extent world being FedEx

And we can't necessarily so, things optimize manufacturing and footprint way. is but what footprint, efficient our do that more opportunities our to those in can types become we'll distribution continue and to look within affect, within effective we for of

cadences if our also other expand And also between as to we're permissions versus see our Miguel preferred a impact further, we will builder. on is a business that segments set, margins different and offering have an thing I'll and wants our offer of business. to looking right, promotional different customer it but the at The buyer segmenting on what different

want So, to on expand Miguel, that? you do

segmentation Everything based of out our is Yes. strategy.

With been investments way is for we’re for here the here the who segment to we've higher. product. that knowledge, of And use of which is who the promotions, business understanding with obviously, data those return able is the and

company. -- I've the getting of traction, the we lot results one of efforts So been And more we're you around SG&A top an lot being that can a strategy that argue and and the again, that's that a initial around is good promising markets. way sophisticated line the increasing we've a the in promotion see in to that by more that carrying -- done of lot things just lower a that's

business in margin. Historically, that And we've business, our profitable. that, And noted BXB we we move then, toward general, comment. as would final our those more Linda, in are do one a anticipate businesses more higher expansion deliver

have Great, And XXXX? for outlook an costs your resin then you. you do plastic in finally, thank

are seeing chain can on one. Yes, we single-digit costs. We supply increases They're or that anticipate are the other pricing specific in seeing some we relatively through we offset in increases, savings through markets. increases and some those resin but small slight cost throughout that

very you Thank much. Okay.

question from Sidoti Steve & O'Hara Company. line with next the of comes Your

Your line is open.

It's [technical operating disposals property so flow, I hoping in just cash and free understand then next with the any and Thanks that the including flow the Good in what kind year, on terms you're outlook I is less was questions. cash of just of forth difficulty] the for make just is? to sure that. CapEx morning. -- for want

operating of Yes, the flow free flow cash is our net investing. cash

include in coming flows So return cash commentary, do expenditure more a the level. the normal to And all as I to then it capital noted from expect we operations.

million But and believe to intend still XXXX. to So, million we in that we through do year back $XX yet, $XX our this we spent around million somewhere roughly $XX go continued to on the work capital growth company improvement we where and working flow also can of year through $XXX the million roughly and cash in this we operating the ended that deliver, that around range.

Okay. are that. And for things guess for for next I that then, just Or what outlook on baking in you the for divestitures, this like line? year I that? mean, on year,

Yes, mean, core on I'll to focus we reaffirm our commitment. our want business. I

successfully So, made announcement that Shlain. Avroy of in we’ve we the divested XXXX

continue estate, continue real our on. to look will We assets, our which efforts of at non-core all even make to

unpredictable We can especially those. There's in that timelines as when delayed have around of a to obviously, learned work administrative a it's that close, transactions world. lot COVID

timing the our it's juncture, and part our we sale goal nor haven't land in of around predicted at here still the future Orlando, divestitures. of that so remaining this necessarily strategy And the

I wanted jump the Okay. to Yes, back And then to fair. that's unallocated expenses. just

to about laid think you up remind kind But just And in I me ask, to going last is forward? in -- like unallocated there of right from year, way need what of that exactly. just what's -- $XX.X mean, on what I’m almost -- just the what's curious and obviously you the Xx I kind just that's think and looks million it was could there. I out

our components in based are we the of been Tupperware. hasn't the performance largest done is X which -- incentive year, is out years on one obviously year-over-year so that is annual something for pay that Yes, over to able this that program,

second to year half that impact had our versus quickly which the in performance there incentive of quarter plan. year is during modify we fourth annual $X.XX for a EPS this was So why reserves, last evident the became and on the

So probably biggest the that's increase.

more in end the unallocated investments We the the area have front as end. made from back separated we in

and that we around over other for building would come cost, commercial Hector, are standardized Patricio as and you But announcement So unallocated. so work centers markets more of the out -- excellence we'll a leaders fall approach the we of and in items on the back heard that. time digital that

So we components, incentive built our we anticipate something develop just those as the continues. two basis we as that. into are our was It yes, obviously plan think really I unallocated. that XXXX be a delta. so annual and it was was a go-forward And and not on in hope biggest into this that expected that And numbers entered would year,

segment not there? I And to difference, okay. as Okay, -- that because as of terms of you percent of, does line initiatives that to make something and that it kind accrual yes, mean, sense so way as is high about about results mean, in like sales think it I better performance step or behind. I was a year this improve maybe the in okay, the million mean, [indiscernible]. it's guess, if or profit think things up XXXX, of get the maybe more I $XX in based the growth and comp letting

method. Yes, focus tell traditionally, numbers. unallocated that Tupperware the my I you that is SG&A, majority that you since reported as I unallocated would a we in obviously, on the the mean, tell sits of more our can SG&A I

and fact the from then last So the XX.X% this for And with that year, year to we've the quarter, year, to continue dropped four improve had improvement XX.X%, XX.X%. also -- we SG&A, to for we XX.X%. our

to acknowledged like we've be. we'd is XX% again, that where not before being that range in So,

unallocated on that. that. continue part An of is a So efforts make to we'll

balancing costs. global perspective what to but of worldwide, looking in global holistic And was this on so basis a continuing we're at considered we're the it we're versus was from largely now past unallocated the optimize a our

-- SG&A range be don't level peers you, peers to get think Okay. would a mean, what longer isn't the there want could that -- you get I but know, where term, is that be. everything's I range that long-term around what's you hope mean, thinking XX% where there And -- to you as are to? kind and of operating, in, if about are mean, way to is I said I

have period, I not like where to Yes, mean, we are business. and the to in and we over the X get would said I I out in going be, we to Steve, but think anticipate XXs, that's X-year reinvest that hanging the past, we But may XXs. the into in

we're and as in we're digital make that segmentation we making so to investments, investments And the balance reinvest the trying work. those

like this can we would And to so, that grow period. plan in we continue line. business we're the our that going strategic XXs on to over to long-term balance But top be the so

follow-up sounded you you the maybe hear a the America -- I didn't guys backlog issues. North guys some like you that then mean, supply last think I noted and just -- was chain fulfilled I on in boost. it And great. Okay, But quarter,

inter So kind relieve supply something still issues maybe forward chain core happen issues? they're are going there less or that …? those did Or of

able the the we to one, backlog. really Again, was our that excited that's we're Yes, mean, were of backlog by was positive. on make and been increase to I reasons. have able created demand we forecast what basically significant three progress outside in

the increase and whenever within it became The the other are is network, caused just the distribution is also that, distribution in we meet thing and in is model, available. business this our that change what expense backlog the to shipping

as soon delight since product packages shortages, ensure our demand more force. to shipping that were we could the to sales get continue So we created we them as

pick of in improve centers want how chain backlog talent consumers that And of just piece new we added that and on it. is so And that's to what and leadership every understand other then, our the supply distribution ship. how in investing day in the pack we something the to efficiencies and the need new

you fourth that on results the the million quarter. in And fourth shipped the backlog board the quarter. got early saw in came the $XX so, And leadership in new

and continue see invested leadership. we so, as new we to in And those deficiencies happening that improvements

Okay, all right. the Great. Thanks time. for

Thanks, Steve.

next Your the from comes of Wendy Citibank. question Nicholson line with

now question. ask your may You

Hi, good morning.

two tax did of a First Sandra, just XXXX? offer rate housekeeping. for a questions, target sort you

what to we're in we're mid did. I the It predicting for be Yes, -- is was going XXXX. XXs

Got it. Perfect.

plans progress to that. suspended reinstate paid just debt regarding sense. which the you know you've dividend, about any But dividend? And Sorry then made that, huge I obviously, down on the made

was Turnaround Plan, priority start Yes, now, size and Wendy, to our top this we're right the have, as line. part excited business our grow the about we the right Turnaround also Plan, of obviously, to goal

So our we'll reinvesting first that. in is business the do so priority and

debt we're paying non-core assets, even down of committed sale the our to further. With the

every made perspective. our we'd on debt, improving leverage our from to we've tremendous company overall ratio that like So obviously progress become a healthier day, much but

we've so, have on them. also burden and committed interest higher loans, term a And the obviously

dividends healthier is in at So, the non-core the two, then, be our open sell debt to concept Once to to down would share to renegotiate a focus we're and right in that the those or time. point at then assets, of do that start there buybacks we'll we hopefully level pay as looking that absolutely we way.

enough. Fair

you picture, of Okay. Thanks. for sort bigger strategic maybe Miguel, then, question. And

benefits Just thinking some in about working of that the you're the new and on that saw the during that terms and of stuff. clearly COVID all good products business things of

in markets, for I in give XXXX. kind reasonable shouldn't is some for a too tough of about puts in level high of running of the mind? level outlook close billion that much the kind quarter to think guidance we revenue a forecasts takes and as to kind think point. don't But your of some we of know XX we line want at per reason sales XXX, of any there kind good and you But this way as top Just high are of stuff. just all times still that XXXX taking $X

because my don't adoption is you that and there. there's ones implemented, to we going making what we detail that not like invest that But you're not the giving things So guidance. -- sure Wendy tell can that know, you the that answer in I we're

investing Sandra getting as that. We're we're said traction. products, in in new we're investing investing the are, the investing we're data, things are in and all those We brand, in

for So, a strategic we're all difficult things the big feel year, system. we're -- Obviously, good about overall, course. the have of into point different view, comps. of are very really for that part the confident But we and inputting on the last we

ahead We’re the of even very expect be little exactly to a be we to where want it we beginning. bit probably at

So the we're I guess And future. very … excited about

easiest months, for in are I Wendy, our seeing is first to year. what said of low is mid comp but the to just and the that reiterate quarter, we Yes, the first teens that X the

more as that's year, that tracking And but complicated, so we're would a it's we difficult, expect what go we much as structure. throughout the

are And can about, regions? their selling gone I Can do normal still of running back have to you to or have is or as thinking et any I'm back back you about the into go is, the job, work, maybe be in kind strongly? people normal school, are to terms day that really part, of cetera, to parts U.S don't push, in think most there line, people about I to Tupperware. mean of for part in -- what or going sales et your people just worried -- just and again, that but some there are are where we're up they cetera. the all back areas job country talk visibility bottom you Or time those are those

kind thinking of about. that's we're all So what

me hopefully, helps. tell So, let let you just me something, it

the One of and growth like from the me the force. this saying they digital as we was before, during saw Once to car why in of but year heard adoption horse there last in experienced obviously tools consumer you've was this trying the also the it sales start went our and key car. horse. And reasons great difference behavior, the and they people back went is that faster, safer never the

they're they They using more of the it's tools. same They're tools, new in our sales of are realize segments that a with lot So productive and efficient. with falling new and the force. love

of why improved the less whole that's way you no they I'm because there's the because that’s the And effort, -- business. actually from actually any the that -- no World, go Digital doing with can keep more earn old the Tupperware view. into why only reason sales not market, there's proposition would point U.S we back saying the -- of on investing. So about to

hugely much. Thank so helpful. That's you enough. Fair

And we have a follow-up question from Steve O'Hara with Sidoti & Company.

Your line is open.

taking Come guidance I'm level that CapEx? for forecasts I'm follow-up. the thanks include only curious, cash flow disposals? sure, Yes, not for free cash free some back your Or does to of the 'XX. did guidance flow for include just

that. not than mean, XXXX. again. say with our but into Yes, it from at divestitures predicted That of side I divestiture it, this on ones the of of talked type point, Avroy We're the we fell obviously, proceeds about, we're the other just Shlain timeline businesses, any on that so associated focused I'll not still we have any continued necessarily including

And of course we $XX million will have the manufacturing And around February. come with sale number we quarters, agreed three $X cash over the which the roughly of proceeds. French that did potential So provided we what was then million, around of at in is site a of to it proceeds buyer. that

closed the the million $X deal quarters. just over we three at So

Okay, great. Thank you very much.

concludes to I'll All Q&A for the session Fernandez today's to final remarks. over call. right. of back hand the That Mike -- call Miguel

can confident pleased company. vision I'm expected. our we've than the that phase entering you. begin XXXX where stronger executing initial Thank that we our the of foundational turnaround finished now I feel for to we're plan,

Thank expand right that today. iconic We and stronger, to with brand into expect much very centric your consumer in mindsets for the our resilient, to one technologies time future. build the processes, is you a company, more place

ladies Thank us gentlemen for you and and you thank joining today's presenters, on call.

disconnect. may You now