Tupperware Brands (TUPBQ) 3 Aug 222022 Q2 Earnings call transcript

Good morning. My name is Joanne, and I will be your conference operator today. At this time, I would like to welcome everyone to the Tupperware Brands Corporation Second Quarter 2022 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator may conference. you begin Callahan, your Alexis

Thank Brands call. second Good morning to Tupperware and welcome quarter you, operator. XXXX earnings conference

me Fernandez, Matute, Miguel today CEO; Joining Mariela and President CFO. and are

on prepared for can as We will this Investor we to the our quarter results supplemental a issued of following be financial our prepared release our the remarks. deck morning, announcing Q&A, remarks. press for website. all items Earlier our XXXX, found And available both be second Relations as accompany well

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

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

certain as measures. normalized During non-GAAP including to refer this measures, call, we'll those discuss we

can press the including measures be most measures explanations GAAP regarding and measures, reconciliations to Additional today's disclosures found release. in these these comparable non-GAAP of

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

everyone, to to call. welcome second you, and morning our quarter Good Alexis. Thank

as our just the two has iconic to journey big turn to business a and make goal started years and business journey this ago, as around over Our transform this brand.

finding began for core Our businesses defining our did with was that plan another home early in XXXX, into first what and those vision. fit the turnaround business our to not

morning, months, business you our our three one As in divested small with past beauty release two of only over businesses we the non-core press more remain. saw this

structure Next, to We turnaround in our enable fix the very need (ph) we favorable and our in took of capital late the to with [holding to rightsizing succeed. XXXX plan credit up] XXXX actions refinancing at activity terms. a aggressive

and steps to dollars necessary plans. expansion of enable our business us up free investment plan ramp for All initiatives these term

take quarter, open to and of are last we systems distribution, and growth enabling upgrades us, attract of for our open processes investment ahead mentioned new investing expected that is and to Tupperware to to brand and we shop. to the As new us the growth can talent they ahead wherever necessary. make it's channels This necessary help consumers but common, in all successfully

stronger dollar, new with With three has within said pandemic headwinds inflation churn the that these We building company. take time XX-year-old global of selling and direct we will run are efforts, our years, our a that the but slipped. company

company quarter every recovery turnaround But quarter. increases will that of also performance, that the confidence in will of our financial successful. the like and first the be We just has, with bumpy said our it be plan

singular pure-play our shop. As channels where branded products company focus distribute creating design, all premium consumer stronger in a a and product we a produce result, to are with consumers

performance, with improvement profitability, second address while by now made me reflecting current the not are in the QX. that financial encouraged our we're we many structural our Let we performance. Overall, quarter improvements pleased during

The during become more all have that the quarter. improvement a and selling in headwinds, made our transformation general and profitability today's a core improvements through currency company business multiyear turnaround the inflation direct of to we many consumers. the navigating are reflects first the events, quarter We the to global structural in while executing accessible compared difficult to

Specifically, changes responsible and declines the sales. ongoing in to controls, Inflationary in the together lockdowns in Canada partially China pricing higher model but which profitability, the in continue performance sequentially mitigated were in taken dramatic pressures lower resulted in during were primarily actions for by tighter were and year-over-year U.S. by decline compared our the with consumer on quarter. These weigh to our South Europe cost partially America. sentiment along revenue offset first in quarter margins, widespread with business

approximately basis to quarter approximately adjustments, XXXX. which performance earnings XXX by adjusted per and translation Second was share also unfavorable foreign points reduced by compared currency impacted sales $X.XX,

Let highlight actions but drastic, time U.S. each XX% the we business our our made and This Canada, increased four top in necessary we pricing in was performance prices me in first and now taken market. we to quarter. some model, the have time. changes In quite

quarter, the knew making necessary XXX As sustainable alone of changes easy business. to further expansion of down increase improved they a the not were and changes, we sales and but were and points, year. operating a profitability in second to result part do, these are basis we this XX% expect investments profit were in The more while create we

the first was active XX% we that the we annual sales compared for we productivity profitable more quarter, force desired and result should a While which and that years. that we these than these for base, profitable in emotional profitability better confirming well changes to a both two encouraging our growth net event towards improved is end across From note something that recognition quarter. week have also this future. service changes. more not be will this made the positioned had much in an I right that our hosting to in X%, are very we an improvement done had the for in-person, resulted impact but smaller, believe more sustainable quarter, The monthly of sales the levels as changes the and effect caused declining

We first growth popular higher in-person return was of trends double address of continued a the meetings, of service sales as towards could meeting second the we as second now hopeful improvements those force as of to which the quarter, first quarter. The time levels, in quarters. lack What active pleased that we As rebuild you issues, and were average believe that momentum be the commercial plans. the duty soon cool compared number sales Brazil, it service some that two in we more by person-to-person think back know, challenges This reduction Mexico, issues following driven the not growth backholded successful X% compared to in service schedules. an in building upcoming in-person began those selling down is and member, had normal end to have delayed quarters by been the to XX% quarter, see have to are and quarter. to evidenced is and improve We X%, X% force, initiatives campaigns in recruiting to however, improving quarter, sales and year, believe sales market of first appears to maturity past over with a the we will the up issues, in a increase active gatherings. caused direct selling In and began the the quarter are the persisted. force activity to that business. industry have take slight in are a we shipments and launch the In deliver growth will our of these

and cause including distraction We year. and the volatility World in Cup, events, also note may Election half the of Presidential that the second upcoming

continued last on China is the our shown will profitability, over team effort traffic, product reason Turning investments our great these offerings and newly consumers. in the that upgrading for long-term, suffered is local to a Asia. productivity COVID including year. due of studio rely China performance lockdowns are and an two of increase years. upgraded a feel many lives the Despite over locations, several terms believe lockdowns, last brand companies versus in has to us retail we other ongoing investments studios XX%. critical all uplift was in look there, that to for in by caused make market the overall down prove months traditional, impacted XX% like the the and of over The to past and in return our foot of the the

severity make timing cannot the off normally. to lockdowns, begins commerce believe investments and the predict work that eventually and we're of to the we further pay important While we now are when will making

business in-person first down (ph), impacted a years. from I sales has Indonesia Pacific of like event just decline, that nearly engagement region, in where with the particularly two was Malaysia X% back cumulative Excluding [data force our hosted the adoption] years. with countries severely we a actually markets over gathering in-person low lack Asia trip in driving the China, to in three last the got

us region a with lot key grow. opportunity is Asia a of for to

We that product return drive and are attractive well sustainable to and gathering, will a more to as new general as offerings momentum in-person programs selling promotional long-term incentivize more behavior, hopeful help growth.

pleased and expansion omnichannel expansion other early in home countries that we follow saw And our Korea, in see remains success channels, expansion implementing the strategy, by the plan shopping business to in winning to it this On are report, omnichannel as including side, track. on to strategy. which in channel growth our relates we expect XX% success quarter of Asia and this

efforts small-scale launched Amazon, a Bath in and Mexico the on Soriana Intermarche name to & we XXXs in in quarter, Bed second the and U.S. France, During Beyond and few.

test our limited products channels strategies today's help with to in closely this and create As what them where with and as a merchandising us, assess entry pricing force we consumer. is and order our also for territory you're very raises into needs of on ecosystem We're we're number new healthy to with new these retailers selling working aware, resonates customer ensure provides react direct us These not our a like to scale, testing us the for brand in see new us but to to channels. instead is is are tests -- service supply Brand. refine chain us. the for Tupperware I to better yet muscle this these retail pilots consumers think and large products this more in how help helping also and This a awareness our new are channel,

our transformation retailers we to expect your in patience gain In progress America, will pay begin newly believe meaningful and off. We with North months. retail additional with few the to next addition, in we've distribution made

Our Tupperware retail to online. each will channels, product shelves appear and begin including in

update details our next products For in channels. provide we're not competitive to reasons, to onto call. these We're planning any excited the you on further actually earnings

we Our business cash selling source made channels flow needs continue remains and of several which arrangements end, business direct to to including will our and quarter, returnable all changing the markets that and improve. and yield service and main one growth in direct levels models profitability. to business a attract we've build To that our distribution believe to higher in selling core and people, challenges various

in in we're that believe force events a opening to hosting had has markets and of over negative But engagement, [indiscernible] events again. selling lower direct traveling, two also sales. our business, I the mentioned, not years resulting most last month. sales unproductive recruiting in-person We in hosting low cumulative developed with host effect for beginning an

hold as in first the XX U.S. week. to momentum those in-person. XXXX, XX than a the in XX events during event us markets this set positive activity this head Our XXXX. is Even half will with of help into more We're second of we up planning

segmenting catalogs make market including sales better continue trade. to tradition their with also data-driven and for best biggest personalize customers we selling and programs direct look preferred how practice, more is at global to our our force customer a sharing to experience loyalty and using global inventory our In Tupperware. We approach decisions, digital implement smarter a

recruiting of program are we're one launched improvement As member market, as legacy example significant in the and in program Japan twice the by the as new seeing quarter the high first month. in market retention, referral we during making changes a and

to to to we we add provide headwinds a digital, impairment. like further models, small As update. of expect digital I'd continue selling speaking And

operate to before, we'll to be foundational technology centralizing and mentioned system. our the business, continue As to I to on work has future

continued while balancing management a force carefully to order selling across direct and we our We year. which globe, for in needs. was quarter, systems direct point platform the the pain second past sales enhance the the over During selling our stabilized change U.S., our

will expansion our EDI in that efforts. invested in also aid We business capabilities

into had year, in the the product We pleased been for and products market. our quarter. surface significant launch the up products was new much example new that more compete. our same from in total period terms materials Asia innovation to of progress the there in a new in glass of that is accelerate We give into successful such in and the storage XX% quarter, even have testing last introduction plan in the One and also product second opportunity as new of new which tremendous also sales bringing We're to better-than-expected consumers we believe blender are brand the potential highly We was markets. efforts. exists accelerate half of as making categories second X% indicated been recent Pacific, expand to portable where permission few

On launched marketing we the capabilities products the our consumer drove company. Brand and showcase front, branded collaborations branding conversation quarter two during run as our that a Tupperware

create Gru, summer. was with we limited collaborated of sets to featured for Bradley we Vera Universal a product. Tupperware U.S. movie, Pictures just time collaborate to second, uniquely party three the Minion's First, Minion-themed in of products the theme the bring patterned with Rise edition And when

ESG the a partners develop reusable friendly, has environmentally very and mission front, sustainability product. our decide On to

to first year, economy. for we commitment the pledged are the ESG recently established promote Ellen the last we to to our time towards continuing targets work a We circular MacArthur and Foundation very

also next soon. ESG publishing our We anticipate report

We world continue sustainable in and more our contribution this to progress area. our make important are proud of to

updates. turning organizational Next, to

product quarter, and of in in business. rate current rightsizing as we XX organizational challenges of difficult made with the us area our global and critical expansion and a selling decision consumer global business Jim But streamline a branded achieve Supply as We manufacturing we an Ingen distribution that new direct goals. experience round complex new our manufacturing organization and new our global us to to significant help the continue company During delay importantly, attract can to hire importance given Van facilities. of Chain, VP has of organization. leading began

the Schaefer, a for We network Jonathan expansion of to and new who leadership SVP spectrum Omnichannel North U.S. probably America. brands and the branding work Expansion, also brings hired in accelerate Canada who efforts

packaging efforts the Board room with going expertise you our encouraging over we Europe the particularly the issued release transformations. to XX of experience this strengthened in markets and we appointment of this wealth morning beginning read trends situation we as China and the In and leading a Mark while the adversely to that we omnichannel XX-months. industries talent details. making, summary, of brings helpful many continue in expansion believe a through more encourage businesses in Lastly, extreme impacted has improve for be Burgess, as to see the we to who will us in result the as plan. are global of sequentially the press the volatility next expect our we've been manufacturing well us His us in near-term and to I

year, believe of chain. will long-term milestone have of catalyst which our omnichannel plenty we remain a we'll to We our this further ahead work penetrate and optimize track us provide and of the later retail growth. supply needed committed to and the on operations We for improving profitability of evolution channels core remain to business, our be

challenge front of have of the in knowledge transform us we to this business. We have

second right However, call strategy on brand. quarter Mariela, succeed as will we we have making the that who more the against are in turn the cover path in and our that now we're right unwavering iconic over company ultimately business execute will I detail. as our to big the performance

on transformation Thank of an I'm board excited brand. and the you, iconic such be Miguel. to involved in

to our third businesses to financial held-for-sale would fix and op, our as remind in with quarter accounting beauty our like discontinued classify and of that personal made you we change results, core. Before consistent strategy care discuss our to XXXX we an I the sold

Our only. therefore, continuing results from operations comments today,

to Now for Europe in representing decrease were our South in results. strength year, $XXX to quarter by quarter sales compared driven last XX%, Net turning million, the second and weaknesses partially America. offset China, a of in lockdowns by

XXX March Net of in sentiment will primarily discuss specific May by our continued performance the XX%, impacted largest sales I declined total markets. the in Asia fell Next, studios. to declined consumer XX% driven and in from and severally region, in site including fewer index regions, XX as China lockdowns sales

countries, XX% the Excluding the total previously as than on activity active host countries of to has Pacific the for force years primarily quite by countries loyalty developing active force past in sales that sales timing The lower X%, and on down net well Europe, worth sales are when Miguel the in QX, impact cumulative of mentioned, developed in brands grew galleries In significantly From in by in negative low our mentioning X% in-person remainder therefore, seasonal due systems, congregate different declined programs, Asia sales for declined Indonesia. activity, to more It a sales health which even had our first China, remain people by effect care consumer hesitant retail by we nature. as is lifted, X% with the COVID is and of overall as to the many years. lockdowns general. are net force two lack sales in by in-person time in sentiment, force driven year-on-year. larger started our as of driven

working confidence are markets is also changes transportation market over and that We're of due declined organizational and region, making very like energy largest prior retail engagements, sales which supply to as XX%. did programs, to time. the large the food, beginning to performance products. important chain fix are that not Consumer one as we needs the impacted well they price repeat in negatively is our force service timing logistics in more, largest will by sales to believe deals lower basic of to decline, had and European to less from response budgets shifting low. year. spend switching inflation. are improve the Consumers and Excluding consumer this the our that by save issues Germany,

declined Net quarter the XX%, by Moving primarily sales levels. XX% part sales to U.S. and partially America from force by net service force in North quarter. engagement declined improving second the driven issues offset sales into lower driven Americas. and lower In the persisted the that productivity sales in by by engagement, in by the Canada, service

XX% took our item the model intentionally business to initiative also necessary but in quarter, effort but an improved force growth, Mexico as by offering levels price reduce a further and in X% while numbers. we Miguel Net delayed We profitability, service as sales. More the difficult, single increase well shipments Profitability lower acknowledge caused sales in during to by we incentives resulted changes which service and cost, that address to was an also in quarter, engagement. some We issues a meaningfully to build see sales the in quarter shipping inflation remains the back into special in slight earlier. improvement work sales increased June. issues off by the service improved force began kicked and improve part lower to referred

X% Brazil, quarter, by led inflation I that X%, to of as were in markets, as retention, effective In contributed also in by also XX% XX% by media also America, our for on which second is costing note relative sales showed increased service higher sales for Brazil. increased improvements promoting quarter. than goods. X% increases, equipment points driven driven the increasing food quarter. by as South which the by sales weakness We largest campaign, campaigns. one net we growth efforts social average successful strength prices the opportunity, redeem retail price the Argentina, will further commercial and with business to rather well increased in net prices in Lower by consumers loyalty to

price profit higher margin driven last which quarter, P&L the and than country and profit. approximately gross was and Next, lower driven by million, the second and last transportation the second decrease by lower in increases costs manufacturing points compared moving quarter. basis resin XX.X%, in partially the volumes, to XXX Gross a year. XX%, The by quarter product In represents was down offset $XXX to decrease of taken mix, inefficiencies gross year. was

taken in balance to were second of seen of half quarter, anticipate the we actions impact price full the favorable As across the be the their year.

For average increasing full XX%. anticipate by an year, of prices we the

basis year, quarter expenses represents XX% and were Brazil. the selling the debt lower investments of on second for technology stances higher sales. omnichannel tax favorable $XX of lower partially a down driven as efforts. or by strategy, This P&L, an was points year of The adjusted covenant $XXX prior in by percentage Continued Adjusted XX.X% the by EBITDA and volume one-time This decrease per a SG&A and compared improved the to collection XX.X% in expansion million million ruling basis adjusting a for or XX.X% increase to driven was XXX of sales. reported margins. offset compares on sales, processes second basis lower in support net promotions and our or for XX%, to quarter a approximately last

fixed For adjustments included reengineering reduce distribution, costs Europe, million approximately $X technology as primarily in quarter longer improve to in $X adjusted use. organizational write-down as to changes, operating and charges in million in no assets well income, related in the

last taxes refine also rate. strategies the Concurrent was the operating rate a expect driven cash our quarter first be lower for for this by quarter note receiving than the year. tax XX.X%, operating in tax lower an to second driven country, organizational recent entity quarter The volatility, losses supply XX.X% that should including as tax full-year, to year. chain Our all previously approximately the planning overall $X.XX changes and achieve prior compared I per we in in countries, including rate mix the finally, continue unfavorable by in during of compared currency no tax discussed, to U.S. factors share year, $X.XX was earnings we for of same and by unfavorable translation. including market $X.XX to And year tax last benefit adjusted substantial second with quarter, earnings to and the XX.X% the the were

operating $XX reported earnings, now was cash of of preparation lower to year, flow million $X driven Turning activities expansion. by flow. compared increase investing for negative year-to-date together cash million, an basis, working negative omnichannel last in with a into capital On net our

credit We quarter, We our X.X facility repurchasing provide total our announced and share completed million a previously repurchase EPS. of million of shares, amended to in and the volatility of also our continued which flexibility anticipation accelerated turnaround $XX retiring to the plan. market recently greater $X.XX adjusted contributed during timing

given performance While the We term our accretive quarter believe cash will price trended, becomes be company that $XXX predictable balance to the million. as and in years dilutive a has stock with more the come. immediate where highly we this more profitable the in of ended

leverage consolidated was control net tighter report in second sequentially quarter announced by priorities balance improved measures. summary, chart first reduced capital ending a by of which cost sales and end, the compared the actions quarter At our year-on-year, Following our In pricing we down ratio as driven declined net the we million, debt the the nearly toward debt, X.X. profitability total first $XXX pay with million. quarter, while of to quarter, shifted $XXX allocation

questions. While is this, address trending challenges our also navigate plan. us take We, executing our near-term enable working nevertheless, as now some foundation potential performance will for to continue turnaround in our continue financial internal continue and to right strengthen we let's to direction, volatility to with the external we headwinds. And acknowledge the

[Operator the Instructions] And Citi. Binder from comes line first with of Jason your question

Your line is open.

the guess markers plan. what Miguel, I is, start I to need guess, in. how back Great. the timeline and that you just Thank think from for those? us expansion? really morning, you the question on is And get And the to I'd changed? me has where are to you. big to where achieve shouting kind transformation like plan, of kind mile Good stand stabilization everyone, original on relative that Phase you to And this you think of to thanks X-year do do

morning, Nice Jason. talk to to you. Good

is things a not our put you you world, was years in the part of obviously, our most outside as importantly responsible us omnichannel one other of three-year a when different conflict and fixing two: had the we're business; in plan important very But is right, the together shop ago, China, things in strategy. second into the which, basically, account, divided plan, consumers to COVID in was our there major where can is, but one core couple which meet it that obviously turnaround was And were and which in a So they of we markets. is, versions. few control we our as our plan one know, taking of the now Europe killing one know,

Tupperware real-life examples pretty what see I'm when milestones QX, that you are it the see closer And you're getting of in examples a able to that's you even in towards those And basically year. see closer by to going markets shops. where our going So the of when end been when more more in QX of QX the everyday day which some translated it and be at? you First, and on day. online in to as next in looking a heard the has and you see Brand you're little lot the much your see of life, script, and

already part in this of of parts see The world. the strategy you and the some other

there. You that in expansion we've this retail see brand having lot been presence lot some having with expansion Europe a already of and we're -- of programs our of the with have Essentials that that there our we a the loyalty

seeing our of world. parts we're in in-person -- the meetings, variable and little basics, for that's the easing by of business COVID In little, many terms which us, not and fixing having core really a obviously,

believe and accelerated have we want growth. we that time we every create we see to that the in see growth So environment the we market,

it's I'm an timeline, say number, probably delayed had everything. I'd the specific, obviously, more But these as time that answer right? that -- just to I'm a the But but thing we to to So hard time. to put long-winded predict going kind around headwinds going answer, -- turn say fast. I exact of normal, it's any create nine but that good the know becomes is it's we hard we on. of the be to between Europe every turns a that growth. all we we year, accelerated, obviously, then open then brands quickly, they're create, it or -- China want months retailers, around COVID approach to not can up and direction so release in they could things with we environment and accelerated to because lack And a see time

be it. So that would

increases? that. to then on price Can and little Obviously, of I ahead Thanks. seen spend markets And just increases the you've elasticity the whether seen and if of Great. price a Thanks those taking. of bit there demand for number have pre-buying time to helpful. those you've you way in what across And might want talk that purchases? been of is any demand pretty so, response quantify come been? That's to substantial. forward pull about a And you've any

inflation Jason, XX% it's country Yes, markets, in of the and than countries with price groups that, force In it's pricing ahead and X% some the conditions. varies that, course opposite. QX, the have increase. done XX price the it yes, the throughout of are the of other increase we from seen And price depending on buy we to more We've Mariela. effect volume. markets analyzing some Hi, sales on increase,

rounds we the conservative as we learning point, with the now, of demand, this going in at to the expect we and of expect price are learn are throughout to and the forecast, more next we our being elasticity So do year. we're

on. Great. Thank it pass you. I’ll

Sidoti. comes Your line the question of Anthony next from with

is open. line Your

and questions. morning the taking thank Good you for Yes.

costs, side the the second of just specifically far So since business, changes so any the the seen as you have resin logistics? and I quarter, on to your meaningful of curious, end guess cost as

to in costs. X% be increase the freight hi, And in between cost fashion, and and and in received resin similar we Resins a inflationary primarily environment, a XX% Europe. continue for Anthony, in in Mariela. P&L an increase cost due our for QX, to situation distribution

For have the inflationary the year, further rest are increases we environment of is we don't price. our we see the news predicting that good reflected same what P&L. from in for The resin already

leverage announced your how And about to you Got for credit cash you. and changes today, half with should year? your agreement your Thanks. that you of then the made the flows think the back ratios we that

Yes.

and able been flexibility in plan amendment to banks, with an to our invest negotiated turnaround we So create initiatives. more the

selling COVID So continue debt with as our have we the of within debt-to-EBITDA to to ratios and as plans mainly in the bank. restructuring And we our covenant will Europe. have being far business, we direct continue capacity answer, using that the parts

Got it.

executive continue so made team, as journey make have you Okay. Or the add to place? to Miguel, the new in channels, channels? far think you need into to I with new you've as people sales the right do look if more Tupperware you this to -- know think hires. to the you the and talent do And transform strategic you satisfied then are some sales you

might look like. now, that good Americas. we not a we're in the EMEA, in and it's of only bringing under mostly very they think also that operate couple on I but the know world, key teams probably So parts bring strategy, when leader, I feel those new rest actually the But circumstances of good some will they’ve executives. the more so execute

Got you.

guess about I of rate the think been back tax and lastly, the about half year? for we all of your you, should -- how any of, kind place. And the tax rate Okay. then sort thoughts over And has the

rates grow the good XX different you than when Anthony, over more have Yes. and all countries. different description That patterns tax in place. happens

adoption shifted is point, a credit take this loss. countries rate a and we taxes. So tax to but what as rate of higher that we for at the XX%. XX% unfortunately, slightly QX, tax with reported countries take last in of that than losses we for quarter XX%, the Tupperware cannot than rate -- reported higher the the the was dynamics we adjusted can was earnings those from year And we have and where tax the mix where lower And

the countries in have where of other don't tax rate. benefit words, losses, we get we So in the lowering

the So have we just put the are to basis expect rate, understand we be mean, rate, that our and the countries tax on to to And over have we continue where priorities countries net where the planning we are initiatives. and can tax the the we long-term. where the they short-term, complete tax execute where -- we income initiatives tax working tax to a in high yet rate lower that are I

okay. luck. best Thank and you Got of it,

Thank you.

Davidson. the of from with line D.A. comes Bolton-Weiser question Linda next Your

Your line is open.

Mariela. welcome And hi. Yes,

you. Thank

turnaround a efforts the do of so on front, do in of required much the that anticipate wondering, do So I how that quarter to expense estimates in of mentioned any the in spending. have the was How technology turnaround? you of the because one was affected you for work I was that investment in the the things will company, of think lot SG&A are there much remainder remainder technology investment be higher

to the was with enjoy do Yes. joined multiyear Linda, tools their that the Board, map of digital I channel, direct of why now and actually, defined our working job retail. be reasons in with workforce, am is more to sell Difficulty]. selling the and modernization that well Tupperware. one I selling using There in as to company digital make road technology will plan right enable enable [Technical direcet I a this this era data be presented as to to

be of the between that will So we we IT spent approximately what expect double investment XX% today. and

to we together once take the to year have the company era. a plan Next digital

Thank in also, And said one something think, improvement sequentially. helpful. I That's expect you. commentary, at point, Miguel, you Okay. you your about then

decline sure will sequentially? those Do of meant. So mean sequentially? the constant EBITDA you improve you profit you I use you you Like exactly What decline mean the will currency mean decline sales? Did will words? what did or improve in wasn't when

our specifically, in in above, right? headwinds. you more in us. obviously everywhere manevering bottom them, word, we a that been And improve, one prepared obviously progression So but to sometimes facing to huge are all and top that of expect values the and I in we've but one line we line We company and the we see for to got the that between they're believe and of obviously the are lowered, going

Okay.

materially So you on or can in execute just strategy half? more that that. in probably an to second there in rate the cost that to the costs will bring more as quarter related the quarter the investment to in represent the you second of U.S., you investment think to some Do increase the ongoing were fruition? the P&L Or second strategy talk does the expand about omnichannel

I to hit. going is investment increase, think going of is to revenue also terms in but

end to haven't revenue that. meaningful the around, we ongoing, for invested, revenue, we because more but -- QX so the but come, or and obviously, going lot but far, and going of own activities, compensate is investment also merchandising activations we're to starting it's revenue a brand probably towards So strategies and going QX had we any to have

we flow performance, operating cash half last than flow on And certainly, first touched the Okay. you see can cash and your worse was the in year.

would explain So I supposed inventory, reducing which that in why to positive sense. flow a on you're is? would can you release excess Because cash expect be working

cash the are year-over-year? what elements flow that deteriorate So the making are

Linda. Yes,

our in QX, was about better or $XX used of margin in of QX of so the And the operations investing than plus in $XX driving is million cash our what cash And million so are deterioration uses was QX. cash erosion. of

we indeed well with we Those as so second from our have know, in that year-on-year, investments our the XX% took QX. main very manage had [S&OP] so last XX in and And as plan our that adjusted to development two where our working to about facts points we between and we inventory basis benefit better. item are you declined improve As inventories (ph) We're cycle hard the also QX XX%. of product from SG&A, cash. went XXX gross -- year margin some cash,

and continue in So plan of we cash. have inventory used that in reduce source to as a our eyes

that, Now, our for working is expansion. you to an free see cash flow what so also capital retail the in investment for to addition in prepare

of So the you increasing enable multichannel terms will our strategy. our AP some see AR to

that reflecting still averaging been some to actions do And Or already taken? is through when to XX% mentioned you for need you get Okay. the take the increase full-year? that already then what's year, the to pricing that increase XX% -- is

Yes.

times we are quarter. more different at actions. price taking So increases effect were The into the of

don't effect full So see you in the QX.

You will see the coming of and benefit QX. in QX more

in Okay. in this that Are the mentioned stores? & is we Bath time stores that and you a Beyond. talking And Bed the on Or initiatives at can initiative retail you then those actually see in the initiatives? brick-and-mortar about at Home online product Goods U.S.,

So already to to going I everything, supply we as I in systems call I mentioned in were, those the the think sold for let's is that say, and product gone. pipeline it, on -- to the sure them, I'm let's our say, us it's and make tests chain, script, right? pilots working, XXXs, that think the

by start sold major online, you're Bed the was end Beyond, and seeing are it. we've think and already I QX, -- and more now. it it's pretty shelf and QX on QX our is gone to the But in of I in what think all towards much retail. going online & QX products they all importantly, The in of Bath

half? reason needing credit second what agreement for of Okay. the then requirements just understanding, that will Is to not a sort I whatever there real for to meaning in finally, leverage Or because raise in working is And was for second necessity? omnichannel I profitability agreement? the order credit EBITDA the half. I mean, to the or ratio change amendment and Why strategy? if capital still I'm guess, get that I'm cap that that mean, the of sequentially wondering, improve

we have as in part but Linda, EBITDA primarily anticipated, as well also accelerating of initiatives plan had our declined Yes. our turnaround of are we more as to than take expected is to revenues action as Europe restructuring improve, some in Asia. originally

in are to and see Obviously, ramifications the technology there is of still as and expansion. different in piece capital and some our business, So is COVID of expecting restructure seeing an the and business. pandemic everybody uncertainty cash the the you will cash is know, there in that working of to retail part past, last China. the the situation we enable are investments becoming also, China markets you lockdowns COVID event but our are And another -- inflation all in the of the requirement required we the for the to

as to revise for retail with So the selling in turnaround our agreement it the the flexibility our uncertainty, thought the was credit brand. that we execute to that direct we market have both well expansion prudent so of

repurchase, share then can one one, your And what accelerated completed on So very clarify right last repurchase. That's your now? you you. helpful. is Okay, you've thank stance just share the

terms some be that it could Or the under share prevented forward, you're going an do is temporarily further you agreement? your of the focus on on from debt to is In of repurchase basis? going there what terms credit reduction? Or -- are opportunistic

Yes.

million first, have our $X.XX capacity additional expansion travel working we of capital we original anticipate of we of million EPS, shares, and did in XXX X.X in shifted $XXX million. still year. an time, retail year then to repurchased we repurchase have remaining have we effect -- $XXX May, we well, not So had the and And that to finish -- but debt this and and the manage then as the purchases for remaining this the at share do

we managing obviously, the on So those allocation we priorities, our a basis. will are capital monthly but closely

so you for much really I questions. answering it. thank apperciate my Okay, all

Linda. you, Thank

There the are no call time. Fernandez, to further I turn questions at this over Mr. you. back

making they selling the expectations, our direct results, business. we were to sequential result are while core closing, profitability Thank a to not as pleased in our of are changes we and with line second with we you. improvement In our the in quarter see pleased are

to plan and into expansion of look to retail future to business us business, later penetration incremental for brand. progress acknowledge we on as goal year. big omnichannel marked channel Our that there's look transform as We but talking this to we today. still the ahead work plenty you forward this this again remains track, of your soon. this time forward We of Thank making iconic our you towards quarter, remains

conference today's concludes call. This

now may disconnect. You