Tupperware Brands (TUPBQ) 3 Nov 212021 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Tupperware Brands Corporation Third Quarter 2021 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Alexis Callahan. Please go ahead.

Thank you, operator. to Third welcome Conference XXXX and Call. morning, Tupperware Quarter Brands Earnings Good

are and Fernandez, Harris, me Miguel Joining today President COO. CFO CEO; and Sandra and

We which announcing our our results for website. Q&A morning, available quarter issued on financial will of our third Earlier Relations XXXX, we release remarks. available this following press a the all be is prepared for Investor

X, that to as such remind you differ the and November your of reflects me and may responses following forward-looking Let our statements. include views questions management's today, results statements. XXXX, may discussion Actual from materially

Additional any our Form Please information foreign that XX-Q of press morning. Please release period impact which being comparisons, the constant forward-looking XXXX, impact foreign on potentially release. a our second results note press the excluding fluctuations. with our results of of exchange today's filed disclosure current to application that is of quarter this financial today any the about net X factors prior the made on rates Page for subsequent to the the basis, sales currency review in in enabling reference is statements and rate included filings reflects could exchange period SEC

we'll During measures. certain discuss this call, financial non-GAAP

the our Our non-GAAP these measures, posted and release comparable Relations press issued SEC, measures. additional this these GAAP disclosures regarding including to filings each website, measures the with most morning on of contain our Investor reconciliations

you, Miguel? today. available call to turn with me our Finally, that, the of a Investor Relations will replay And website later call on this be over let

successful midway X-year plan. is are for Thank a point everyone. solid growth We're our now you, execution Alexis, of This morning, the expansion. consistent turnaround and good and sustained foundation building at sixth our against and quarter

those who for Tupperware story. the turnaround you new me of strategy are to our summarize Let

to idea enable core by and business year us an sub brands year, direct wherever includes while doing our will business that access continue year omnichannel our about choose invest that We'll fix to Our consumer merchandise in this to our the minimize core foundation to more today. and omnichannel creating company. price product to XXXX selling content. We're increase iconic to our foundation products building is where to opportunity. The strategy strategically fixing they consumer XXXX stabilization. products build of we was is This the buy. the talk opportunity a channel

of those beyond, begin Next year, categories. channels and efforts XXXX, accelerate XXXX the enter in really long-term we to year will sustained for and expansion will new we be growth. product where And

we quarter, the future. During executed strategic position on well the us our initiatives that structure and improve for high-priority several will capital

including call, We will include, components back each get resources brands accelerating and holdings, third that recently beauty actions our important excess assets, at long-term will into the and plan to a repurchase shares during strategic core and turnaround property in ultimately divesting facility shareholders. level, our later our share us utilizing but expand on noncore support These on on X buy achieve of focus and growing quarter, returns authorized million goals. grow, enable these businesses us enabling more and to detail time the Tupperware progressing high more our to our are to the

our can reflect Beauty to release, you discontinued been press the As in adjusted see have results our our business. of operations

disruption XXXX shift business, $XXX primarily core market along million XXXX, reflects declined net a in from Tupperware difficult in which and strategy our reflecting up of cost Canada and our were call. And learning the our our improved as demand U.S. knew implementation with executed the in we period business home. closures result, that an in increase eating comps. consumer in sales adjusting structure Remember, standpoint, from tough tax QX behavior against As of later new to working will Sandra team and of and an our to prior most yet benefited EPS grew on $X.XX COVID-related from XX%, well. of XXXX, a new under of the technology we The due our earnings From year year-over-year describe XX% platform. reflects from comparisons we during lockdown us quarter, and adjusted were

get will open Now of that a several continue. that markets channels. Europe, we've trend mostly retail excited and go seen as again the more are traditional and places And reversal believe shopping this have to up, trend begun out to and consumers at U.S. we

to to recurring to directly overall restrictions COVID begun impact with in we Asia in efforts headwinds productivity markets of and personal gatherings are into significant opportunities regions, connect and lockdown This have in given especially That medium many gone strict and have the these term. While near America. Pacific or brand. on transitory of Latin the mandatory some a believe to and begin resurgence open up, normalize has will others to the said, response the had in nature in

not as over our need quarter, by As reconnect validated. in as give being believe are be that We working business sales that directly to I our with line diversify later, turnaround that bottom we we but them successful and our we results on improve will direct multiple third selling any in environment. the market the linear tools our implement time, growth impact headwinds talk because will and force the our strategy will these most both to top roll our channels quarter and as And about business third produce had we to support is plans. they believe into evidenced

turnaround make turnaround to needed major XX in frankly, are third-year XXXX. have place a appropriate of we an the feels and to not quarters this the into summarize last in company afloat. centralizing business doing structure, of with to of different changes short, Now created progress costs, this reduce operational the improve brand mandate like our a liquidity. improving cost this by time service business that generate April iconic well, was optimizing was business. very a functions over plan, Quite our to did In many We midway and and We've debt our and made group keep execute in savings in $XXX rightsizing efficiencies, services the million to The entire we solution X back-office was delivering a refinancing point full months. we to XXXX. our global

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from that time we bought the And our reflecting share since shares first mention back as this was system I during restructuring the repurchased shares belief personnel. made we quarter. in outlook in systems Lastly, of we positive strategy common detailed and U.S. processes our and our a stock. We've our new to to the improve investments sales appreciation implemented execute of and We should turnaround plan, the XXXX, productivity. force a sales company force second

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expanding Europe We're our testing through called first of Essentials, also Tupperware the is line work continuing of sub response our the and consumers beyond One retailers. selected in kitchen. we've recently product begun brands

to end cup, they product fast and customer our giving tools innovation the successful recently our force company for need good end consumer working a recognition better, is sales our Plus received a has material also go level. cups. we and for our and be specifically Plus service coffee coffee improve made means We're force Service eliminating experience. serving sales revolutionary our which ensuring Echo the both solution and Echo our Finally, our single-use to the of from for to

ago, the been necessary to cultural execution our but confidence is is have strategy never much we've strategy were in customer more company, made. of entire We're that the we but work same has lot. for In compete in to So We months close effort is do, and a our and one This just It we acknowledge to sales service. company customer of the XX still an hindsight, progress proud services of journey. plenty the delivery business. true of even omnichannel not that we're higher. than our force a shift that's and

have and has ideal. to than Lastly, pandemic the gather recognize to that been people [indiscernible] connecting inability less we person

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meeting rates regions, person. the back finally executive Now has the team leaders with increasing in many vaccination get to in opportunity to sales

cost normal intend and we anticipate travel also were to incentive coming hold due our back we more to that said restrictions. when total We in was events put XX we savings trips to past months on portion activity. return a the of This resume

expansion BXB retailers to and essentially expansion, which studios an through includes Next channel loyalty business them move. and selling programs and important is sell on

We make good continue to progress.

year-to-date which quarter to business an the mentioned is compared that XX% were to last sales, represented expansion of we we period looking increase in For total September, U.K. quarter, where were Also, we the through enter into X.

represents a in many brands an international major a products U.K. So large announce large excited approach we in of faster think U.K. distributor will that us. component just and meaningfully the The key for of this also performance enable will to expected of Expanding is I'm that plan the this signed strategic gain of And opportunity us agreement we U.K. who market to the sizable is us and reduces distributes new during consumer with product. the minimize a retailers in channel increase assets any is given market. key of of It single reliance into traction Tupperware period. the enable our therefore, our to channels to volatility

Next ESG on our efforts.

quarter, brands the Sanders products returns past engagement back. selling the more analyze indicative in launched were of deposit small Look We mission customer matter, Brands we and And recognized years. deposit do Hortons through than or Keepers Tim receive we that first to honors when gratifying pay achieving to for to A impact, Loop to to the if then done, where It they social to the relevance just new spreads provide making we're will with communication for for recognized for which locations. is fourth for a cultural purpose is progress ideas. and services. our TerraCycle’s Tim and they're a will Sanders of and the a they chart this Keeper. X authentic brand. the a power iconic especially be their can it providing path company's in opt restaurant project premium cleans During Hortons future their return be it Canada basically

to be will soon we commitment new our include which purpose. sustainability further goals our and and targets Lastly, intended clear publishing our report, to ESG demonstrate realize

is now. months it to goal a XX very ahead, and even company be Looking our from stronger different

channels to continue direct our product improvement, practices selling data categories. of through We're optimize service strategic expanding and detail and long-term a be near-term and use Our plan. to new investment, into product structural business priorities strengthening running

of achieve path force our we naturally am brand, the will Our necessarily and the But every on to the our linear. investors dedication our proud won't work to ebbs thank be confident we're hard I to long-term and a sustained and our our turn COO, term expect of employees therefore, of one and of each longer growth. and sales improved time term, us and over should given them achieve And CFO structure. coupled report now quarter. and goals and the helping power full liquidity flows. near provide I capital with evolve Sandra, for members a will

Miguel. the company foundation our quarter Thanks, significant quarters the prepare the while and the for to a was X investing for indeed to It in of next continuing business turnaround plan. establish

our we held assets release the sold discussion operations also been in want in note XXXX evident financial our Form in will period. $XXX for be are I I met is that currency the a have criteria an in working quarter, to restated such of noncash purposes year standard Because footnotes our our accumulated translations, financial discontinued core discontinued will aligned very prior beauty detailed practice. also either or our with results driven did from reporting by as third our Details the sell the be of from this this which we've for Before change of as loss necessary for only. I of begin our We comments operations, the have will focus separately believe actively presented address to several business. of the that as to of within to quarter continuing the accounting on sale the businesses primarily found is statement of performance classify discontinued reflect these GAAP and record approximate and brands, million operations Therefore, strategy results been operations will call, XX-Q. XX-Q.

by sales represents We would providing the Net we year-over-year have by compared reprioritized I sales driven Peru. believe the the Now tougher of have in compared The a to previously caused we're initiatives comps nevertheless, the million the quarter are the in that levels of implementation transitory of XX% quarter But across productivity lower of nature. certain third higher to a to caused persisting support vacationing, year. independent as globe. full of $XXX results decline the new will We force continuing ensure discuss in acknowledged our decrease of the selling U.S. in total caused XXXX to pandemic, sales. disruptions and In and efforts QX sales markets was solution by expansion business operations BXB, many lockdowns force last business, by importers, XX%. total headwinds these business quarter. was includes that which in of expansion other EU up represented quarter, the of or non-direct XX% especially

in $XX is between total $XX million. have to year, Historically, June. been X% achieved points goal XX% sales were fiscal reach September, basis For our we've sales already the was business year-to-date BXB expansion total annual $XX million period, partnership this BXB compared Year-to-date total of for the million. to year-to-date up XXX million. period And through sales, or million $XX sales. the same $XX quarter our to of through

relationship portfolio brand the I'll major BXB while that retailers, Our at of significant our represents awareness. same into growth opportunity Tupperware. expanding a reiterate programs time, for channels new new increasing

new a is COVID, decreased XX%. sales Tupperware openings. vaccination Philippines, focus significant low Turning an impacted in and XX%. market. now significant strict for these severely should increasing driven particularly to within areas improve resurgence the The in lockdowns ineffective of digital change continues We including to region rates studio I to in XX% Indonesia closing China impacted decreased performance Europe, many believe regions. a slowdown we performance potential as by by Other and this COVID slower recently at pace as Malaysia, to down significantly brand low was by of adoption. leadership regions. were in region important long made is the well We we the by sales within adoption there the by opportunity that note China challenges, digital or which hold Asia by mandatory the term. in quarter, sales Pacific, as In related lockdowns on by think In efforts, sales as

BXB BXB, sales not travel by the year. European in levels customary the Italy mainly in due this a prior were markets of Europe by likely exasperated restrictions. repeated this to summer deal XX%, elevated given decreased and was full year of Excluding timing significantly that year of developed vacationing, is which impacted in a year,

continue COVID to the civil the recruitment, unrest, a promotions effect are productivity and impacted certain this profitability were resulting of We to year region. unprofitable and which by natural emerging in also European such side lockdown improve markets North and lower disruption in solutions. of XX%. The of by XX% caused in Canada decreased conditions. primarily the driven our by by U.S. decrease decreased the new and U.S. sales challenging while were America, the force In implementation quarter, Canada by sales eliminated

to actions to taking challenges sites working force ordering address are the We to migrate management sales to solutions. the consumer-friendly a change personal system with and including vendor talking salesforce related more

as issues we significant the lower-than-expected force the service training to this reengage stemming and of recruitment the strength Argentina previously We sales mentioned, recruit training leaders pleased to expansion of ability cumulative are this a of valuable in strategic attribute efforts we and simplification Overall, to underway sales action a our our second that to increased to Miguel region. of quarter understand rollout challenging and to tangible by initiatives reduction bright spot onboarding a from how help as to national to given customers issues to conditions Mexico and America, in and quarter, processes. campaign attribute despite market begun us flat, results. due significant As to e-commerce already X%, with sales reconnect against view the our platforms by have sales insight take on which improve. was we've which the restrictions. South recruiting Those with and digital decreased our recruitment Sales yielding Brazil primarily serve performance relative our In COVID in efforts our by due as driven executing during Sales are were force end its positive sales face-to-face better. will and X%. them to we COVID. well level. also We delivering continue

quarter Gross basis driven of third sales, XXX and compared profit. by points of year. costs to and was approximately last a country to manufacturing mix. million points This to XX.X% resin to the in now higher net Moving profit or basis decrease XXX primarily $XXX was points XX related basis related

quarter, offset had we're resin we it. help last but anticipated in optimistic the we continue would favorability As to mentioned costs, higher manufacturing that

However, this quarter in higher inventory. case was not and to third due lower volumes the the

prices As note where we to for opportunistically and and built-up increase look increasing I XXXX, meet we service reduce we levels during inventory of should appropriate. forward cost, to XXXX improve demand. intentionally to raise order look first the in will opportunities efficiencies also that half

of versus regard and levels during sales plan the business efforts increasingly the direct was we for of logistics fulfillment the costs and be note as of sell-through improve in FedEx shift where consumer of I'll container model the to that will sourcing, increase as However, versus year. have do reflected to revenue. in strategically in pandemic. with XXX still we're this which ability advantage the we're inventory and elevated, effect second carrier a focused quarter, to to been and shipments. locally the basis remained is year, do to to an believe our XX.X% in the and costs, costs future. charge the demand the majority investments we half shipping that points, our distribution. make manufacture in on we percentage reflecting the pricing We for XX.X% end cost optimize using inventory U.S. an where and third minimize a the contract lower shipping, higher utilization surcharges primarily we We seeing force last the SG&A be In to a higher logistics are quarter sales in in of recoup and in continues through taking needed impact working planned downtime

quarter a this $XX more million, the operating approach, continue. operating to fulfillment, sales, in disciplined profit packaging shift Despite our omnichannel and trend improve in focus investments. to we're to continue in expect and mid-teens, more sales, was Therefore, tighter the reflecting XX%. to Adjusted percentage a we margin the we was on working controls shipping. it efficiencies cost As as of to renewed a softer-than-expected approach third remained and

an $XX toward for progress XX-month capital structure. which important metric and $XXX in quarter Now Trailing an our our to September EBITDA, was prior year. indicator versus rightsizing adjusted EBITDA and third $XXX was Adjusted adjusted cost is the structure EBITDA of through evolving million. million the million

operating tax XX.X% rate versus negative same was a in XX.X%. XXXX the quarter Our of

election allows benefited rate return in and the utilize which otherwise quarter tax our resulted from when we in change that in allowances. quarter's This tax third credits valued of valuation the have capitalization to expired policy, made October tax XXXX would previously release us an filing which the to

tax non-recurring in turnaround we overall utilize XX%. that our effectively nature, is existing were our this strategic tax While rate to tax assets our part release part of as and initiative us allowance help achieve below our executing of plan of valuation

$X.XX variance per share. versus resin and share the higher earnings and contributed and was $X.XX due share. last $X.XX $X.XX just by better volumes, to for inventory tax of per investments lower Adjusted favorable incremental higher reserves. to discussed The Now QX year is $X.XX of by $X.XX offset per earnings of costs item

year. per $X.XX shares million $XXX a was We flow in last Year-to-date, quarter, in compared investing bought back more net minute, which discuss will of that negative $X the a mentioned, cash share. million operating and Miguel also contributed I to

inventory level before, and payables cost order like actions, As aggressive service actions was last levels of while given landscape to capital issues, preserve including in spending on reverting driven to cash higher global COVID-specific to year spending. invested by of we've year, we've higher mentioned flow supply a furloughs more in This the the and saving lower in improve significant inventory normalized also current chain order cash.

inventory earlier, largely improve flow proceeds cash dependent was of I may on $XXX service less timing conditions. target million from cash our the should noncore I full to note investment free chain sale in As global than mitigating be the while is that mentioned year supply our assets. of and the

on And balance balance the ended a $XXX of million. sheet. which cash compares we to year. $XXX $XXX the quarter million Moving the quarter ended last We healthy with to balance million, with debt of a total

Our debt to $X.XX and covenant debt required versus X.X% below adjusted purposes covenant was for the X.XX%. last year well EBITDA ratio million of

will favorable present our further structure. We opportunities to capital look to improve market to conditions

future trajectory. as covenants. our With our behind As our quarter share utilized stock Miguel maximum as newly quarter cost of to going our shares also we optimism the $XXX growth million. regarding million capital regarding the repurchased turnaround we I efficiently recently X facility. and Board, Of by at common to our within us, This facility authorized we opportunistic $XX million effectively the and be of during that repurchasing continue approved credit And the each was seeking shares, was third possible. repurchase increases do mentioned, acquisition deploy an could we'll forward, of

translation adjustments per total from $X.XX were quarter, of earnings from X% adjusted operations Although and $XX was operations we discontinued our the for cumulative focused share. on adjusted discontinued sales the sales total million net net XX% operations of third earnings or per share, the or continuing excluding

CTA XX% earnings net earnings September, from million of total and discontinued sales adjusted through was share. period discontinued sales were $X.XX the adjusted year-to-date total the net X% of from or excluding For per per share, or operations $XXX operations

turnaround and to turnaround long-term as in planning successes during to an of and progress to the tangible host will plan, we initiatives which continue further driving our that some we efforts framework longer-term business, during comprehensive Investor strategy to the of As be strategic provide well coming against we sure want in are are progress our view strategies get as Day more months. make share half and Look provide plan. details early examples XXXX, and a To first our end, more we outlook. into and of along that the for the a our

We of efforts several well continue while on of our indicative to components core initiatives stabilizing and turnaround in future plan and strengthened strategic progress executing investments business progress. growth. us capital on and structure business expansion our our our increasing for have make that All positioned

of build long ahead on the penetration into continue that Looking and resilient, to With in channels. in remainder questions. drive believe foundation will and company the to competitive a will and let's some business consistent we'll result invest durable XXXX, our more We stronger improve execution our initiatives new term. that, take

[Operator question of line from Wendy the Citi. comes Instructions] Our first from Nicholson

I'm little the that going wondering that the first to we activity the change when your expect to for in XXXX? do for about you long What's disruption into And the in the bit to be saw is still that in be And fundamental that? Do going with My goal last? you a talk distributors? sort the quarter of impacted quarter what's is the new fourth think specifically, question resolved? to how has disruption U.S. third and the platform. more you Can

is this Wendy, Miguel.

here to they So basically, there it. of to there’s our and little are or and to used number get at a the speed that prevent sales the bugs operate data passed force really way

at said little less this productive, expect to there, a we’re going here is better little that the -- making actually, the it’s quarter, implementation bit pretty is much force during breaks and with them there’s down we a be running. I to a bugs up every And of but But and on. it everything the lot as day a and just and -- much every a this we’re causing grow fixing is of and end so to going side of us quarter, end headache. positive It’s to my that sales just system. So just and enable in comments, of our the going system is sometimes up because system

stabilizing -- add little I'll Wendy, system well, And a we're the first bit priority. just Yes. is, is our to

will into the that provide help we to personal would as also it the tools XXXX, website enhancement as be to version enhancing consumer-friendly more though well. digital us We for more but that continues go it are a force sales be our to an consumer-facing

So we're stabilization, making day, into which then first every come enhancement and XXXX. and doing will the is actively step progress

So this anything like force confident implementation. is or that the the you're the line, business North that is expansion I upset issue in sales guess, not America It's that? about bottom system initiatives

much when decline our done analyze about much because And not in haven’t we as numbers, Yes, productivity, U.S. activity. we we in business in the the see expansion initiatives a necessarily

why to related know we that’s the So system. it’s

Perfect.

My few. is a the second there. Okay, on guess business couple expansion. I of a questions just question

you’re $XX business of of from dynamics a global going only that doing basis, the also First are target at to know all, great a your sort sort some glimpse you sort target to telling you’re at us kind on not some that I for job profit but sounds of this but business year. of for you of disclose going XXXX of it sales preliminary to, for expansion like of Is the million also, any revenues business. maybe quarter-to-quarter and disclose sales stuff, point, it? hit there expansion? track And from percentage a all are on

I'll the the business then last start expansion. on Miguel in back let I'll with part and come

expansion. to remind time impact So have revenue everybody reported too. then yes, some our just to for relation in the And we quite business

talking studio the also and -- loyalty which Vietnam the We China, we Korea. million now which markets, we have But are importers have program. we're is India the putting is our also are about, which the BXB programs, and $XX

looking regard will we’re always our And process, and channels. more business equal what in what that’s sales that on reiterate can start or return and goal. to next about so talk it’s get And reporting I’ll business to at more this formalize an profitability today overall have be to we on those expansion basis, in we the on into at and really as accretive best we year just

continue expansion along report business new selling we our business year. we’ll further this direct to So between as differential and next get the

Yes.

that million question first we're your hit going to part the around coming $XX So this back of year. the to

is direct efforts. You we with the know years now, sales channel, last BXB which any didn't where XX% in for news us. should ago great the in selling is Europe. most of of which that the with business And started we couple a see representing right in quarter, is of And Europe, the conflict these it

terms started this markets. In of year these new markets, we in opening new with efforts XX up

amount take bit we dollars little of a me, guidance. start to numbers. year-over-year of were least. if expect same of obviously you interesting offer you total of ask But But obviously, might kind getting any it into at increase don't time to should So

is million So mean, year it's this grew million, year, next I XX million XX XX pretty EUR to if in we $XX plan. that -- -- it's for assume EUR another our safe much

Lane of Lane the comes Our from from next question Doug Research. line

in really any business Staying on you impacts year-over-year profits. the sales historically, in BXB it’s comparisons quarter. to it’s such and effort that Europe, it’s because But channel lumpy given it get a a that been I pursue want

give any BXB thought contribution So I’m could possibly efforts? your the you could smooth and you to the wondering to how business if

This is Miguel.

a previous as you lumpiness years in is X that stopped saw So year. we, consciously the company, for because that

continue year and Europe. There’s, So something is this let's in And one keep to, next year sales guess, to leaders didn't going. so a is we effort on decided conditions it. an around market and but that to on that minimize understand to it channel that is I it guess, we see going face Europe This is in few countries conflict, I sustainable, stop grow. and our to going this the in have

on which is there quarter? of And Okay. impact a for translate sell-in some going onetime any to going with be how instance? enough. into Is Hortons that work? to given Tim does interesting, And project here does the then sales that’s how Loop, sort very with Fair then recurring that then

Yes.

way have into So you eating sandwich for a is Loop, for that And in and the the we what do with then Doug, Horton you people if our after program deposit the or actually And store, sell down you relationships put works which is it it them you to keeper. goes Tim your Horton, is Tim the we is they various the finish launched. like either the get sends I've to some back you machines product your return and you get actually back. come what that back happens it stores. And it Tim who have also you deposit return Horton's They and store, Loop back once can where cleans vending deposit can seen back it. sterilizes to it then or

So that's how the works. process

replenishment restaurants of other by a us and different choice. and continual our Loop of vendors the into work there's then product So with they

the at It’s a stage do too. the and Canada, the have in how that’s pilots pilot report. we point, other And so currently of in parts world in this on going few process

be sales there Will –

go Yes, ahead.

my think you're to I answer about No, question.

Yes.

of what the about on. for So of today. relevant to our brand our sales, all part and is world this the sustainability in conscious And us, world be obviously and consumers and brand because is want and terms it's we the very so to important relevant around activation

So what for put brand. relate to of this to get and looking and a the in they're new us heart is to going are the aspired generations they what and

as the if channels. the going as even bring Sandra something effects that sales quantify. halo other to -- going going possible many do, So a world. there, are partnerships But to as to of said, hard And it's lot we're to not big that's of obviously, do around the into as these we're it's it's

No, I get that.

Tim for account to particular is that impactful end and what work? Loop think sell-in a I be new looking will Loop onetime account gets going like I'm Hortons, any on be that a Or is new to or how there meaningfully quarter? does their for a

Yes.

efforts light. it bring of business to more that’s mean, again, to I pilot. that to part at expansion Doug, is this start point, So a our

our around different it’s that It again, part numbers our awareness the and be brand with expansion so will business produce more of a purpose forward. generation. And we going will

looking this the release, then they’ve added third where moved operations. they mentioned were And they know today’s Okay. so they $X.XX then from discontinued -- added earnings And you $X.XX into beauty And year. we at far that in quarter. the to businesses last year

formas contribution businesses our the rebuild couple operations to questions. was for And in us what EPS beauty just you the pro to are from So models? detailed discontinued or of XXXX? provide going One, the

Yes.

our on EPS to a in ultimately our we you'll answer just this the And prior has year, able also the to the have be the total quarter so to $X.XX EPS a generated So discontinued in a on But actual a by question strategy, to that Tupperware. CTA related the that on It basis. XX-Q, was you, remind this that that the information emphasize, growing the is going all to contribution see for our was Doug, $X.XX Form operations beauty is negative, had these business loss was your the loss on that. our discontinued businesses. overall I ability the on been turn beauty of we've part clearly to carry why forward. of will and improving as forward purposeful moved had our core our have core part assets that we're And our back intent business and we were non-core of assets. we business, and focus core the have divestitures businesses, focus here very with to that’s

But at quarter of I get of And strategy. all. It too the lot the against tough our weeds. how you for going XXXX. numbers perspective, just It’s look here I lastly, don’t in if want a to don’t sounds very all the years up just That’s because on are in to third get much sellers ago No. know direct X to right comparisons much from access continuing again, new operations. trying

third So the we still just game. sure we of ahead of the like XXXX, versus are to at where make look we’re quarter to

have So of the $XXX.X XXXX? third I million it of assume the in higher sales continuing operations quarter in than would it been number is.

third X-year quarter. the Doug, a stack stack on we Yes. And looked X-year at basis in the

but move on a actually have We're meter much. very up is the not it, beauty going beauty X% stack. in Now this may X-year to

Instructions] question comes of Bolton-Weiser next [Operator line DA from Linda Our Davidson. the from

Sandra, an could hoping XXXX. adjusted basis you about had that in talked of EBITDA kind grow on

still So EBITDA in could are I with and math XXXX or be everything. fourth quarter really? haven't done you the the But that not all up thinking slightly

Well, XXX. XX-month EBITDA our is current at

So we're of lot making a progress.

at was quarter this $XX million. for EBITDA Our

we're still EBITDA. regards in what with confident saying So been we've to

Okay. And then –

last sorry, to the that already the And was on but year compared you number XX-month EBITDA I'm can -- we're to sorry, XXX, in I year of that. basis give full ahead XXX, XXXX,

meaning had some Okay. cash CapEx I flow free sales mentioned proceeds operating million, being were expectations things cash flow $XXX about minus And flow, less your you including than the something and commentary like but Can for give from think you about you for that. XXXX? cash

Yes.

a originally to largely rates with the and service was our existed accruals. we really the built challenge. to higher and demand also we of and investing of inventory our chain that fare world though needed for to the own less, related $XXX up better that inventory that did operating intentionally $XXX prove million. timing well. be net is QX even to our a knowing we service. inventory came as supply built We saw the production, up bit payables purposely with improve challenges our we It So little and able out across were as We million internal

not also on inventory. helping comes the inventory cost teams significant a downtime, commercial to that, downtime good it's And also $XXX juncture, the that We're are improve the inventory. some doing our cost the trade-off where but make actively selective we then the can resin unless may through if are X focused in to in inventory to are quarter try a ways. make obviously, to there's mitigate the like a in this relation would where on to on we I million offset of doing impact flow. taking at fourth on cash One, So the it in factories looks we sell that, we opportunities take reductions. That's in of because, challenge which

the in, noncore do the of feel if range of said come and proceeds So of in with originally noncore land assets assets, the business. we both we with the includes what the sale the which beauty sale be more we’ll that, the

business beauty they first the timing However, related quarter slip is to the that more due timing just of into regulatory the to will clearance.

in bit more the didn’t have on something you Mexico. give Mexico, I catch things impacted you – – little think will there? you when normalized business more Can quite be something that mentioned you a color something then And and – about that Okay.

when Mexico from the COVID, basically, softness and from recruiting ones. we efforts. see stories, distributors, it's coming Obviously, impacting that of coming is our temporary. and different have It's similar sales it's Brazil our newer see the So we And COVID-related. tenures

and business. the X X, and joined So they're the been still have the that same confident with that or for the months, people people same better over number But future numbers the the recruiting us about just with because we feel productivity.

So it's recruiting. on COVID-related

to So you the is better bit quarter? going still be in think Or fourth impacted? little a it be it will

guidance. But And suffer quarter mean, you we're takes months -- can, giving weeks the you picture a small can overall, X a it to little But a draw you a recover. I of because guess, obviously, percentage recruiting. in the or not I guidance. few it's in And then it's overall few So business. bit

talked Sandra, these Okay. had in XXXX. And about you costs then incremental

these now shutdowns, But to with think had the the some spending supporting do has business had I And come some you’ve that would that growth. back. of not and of COVID that that

return. back are to are quarter? talk going costs looking that starting the that at and that XXXX, trip incentive mostly So in we going – trip the is coming about to Or of fourth in more for is impact resume, terms can you ’XX costs the

Yes.

XX% savings, me clarify effectuating we like number COVID million. $XX not is right? different is We because in which and That the that let Linda, restrictions, of this Americas, continued restricted. where of of about roughly costs, said was So the travel especially had places X continued types absolutely turnaround year the APAC

lower lot a that. seen we’ve on So number

physical desire again and business. huge are a requests. assemble person start more to We our connection in seeing There’s in and now have to more

XXXX. businesses And a ask our that lot seeing of going into so for support we’re

can will number some meetings. of travel have or shift in small So percentage There’s more a we XXXX. been into have we done locations that that that that,

of quarter quarter, that’s some mentioned into about are the being we’re of tax I’d is $XX then were business we next of million around most $XX half we also in come and investments. shift And to an and the our incremental This investments the fourth so expansion. million some a back that we that making on to And target, initiative, will talk third largely costs loaded. into year. but all infrastructure and product little in adding and of

spending target levels. are to We have on and those been

by this to that that, that through be the will $XX piece anticipate But remind largely to we’re do just achieve we help the of that end flow that on tax to able was accomplish tax a to there million to so us it, looking that’s cost of you year. And onetime XX% next rate year.

inflationary flexibility then are terms considering control you you on maximum by that gross sellers implementing And et Okay. impacted price margin in of have cetera, costs, because being thought increases? direct your I've your channel. price always

price some taking be about offset how So to to able of some these pressures?

absolutely. Yes,

So and part plan. of our we is take be looking that will price, to

our pricing. some We in it have We about talked taken Q.

with markets, an some So as pricing we higher opportunistic year, next year. now this to of resin we will but take to go the help inflationary manufacturing, less price offset further that increases into looking in be especially and ability with had cost the of we’ve

or a equal about using the even U.K. a some just And are Okay. that margin. question alternative margin you're channels in probably operating then you these mention higher quick distributor, there. U.K. away I did mean the giving But

kind the So of is of be European rest margin than that lower your going to business?

it the that things on different, could direct the and So again, do that, all and I can right? it’s of we in Yes, Miguel. start promotions with a geography, have gross be commissions selling business. don’t we but margin,

of So do, I looking what always cases accretive the overall be should to in pointing keep to profitability looking move we’re forward. and business expansion it the for at the we’re again, once us to everybody

right the we on the about so to the be income, place It’s in great a operating really now, on talked revenue. even And being teens. lower

remaining U.K. or any ROS the that is either basis? in the overall of and to about an confident the we other are initiatives business that equal talk at We with or area accretive mid-teen that

with your my then one And share to Okay. has repurchase. do final

do of do Like Or being like million? more? spend how repurchase So does you you $XX some fourth that timing does can Can to work when reload? another that the with when quarter? able in the

Yes.

agreements, an based current tranche sales, prior comes $XX available then already would next $XX it asset the we paid non-core related to paid part noncore the we've under additional able the once pay downs we were So the in, the be down assets. lending of do with down upon a our which and million, million, to

ratio. our And we down of; and so a pay way it how the leverage works combination one, much it's that two, as

would the agreement that is our where under $XX roughly current an that potential of up leverage sit do the have from we sale million the right could come So the we additional now paydown it land. We with leverage Orlando ratio. to at the ratio current at could current

time. questions There at this are no further

Now turn to back I'll for Miguel the call over remarks. closing Fernandez

the strategy confidence your us and to work assets you time. has business in strong our tax strengthen foundation to turnaround a next our ability non-core our divesting for areas results while towards our We and our that summary, in been We're to we we more progress now interest new believe a plenty in plan. today. that of long higher. the ongoing X-year Tupperware post executed Thank do, make of initiatives, our resilient the proud of I'm term. you. strategies in solid still on strategy Building we execute including In See you invest Thank our turnaround and never implementing at quarter business midway point our to the business. as and other have continue well as strategic number of many outlook, ability for acknowledge in plan. efficient but of high-priority will we