Tupperware Brands (TUPBQ) 1 Mar 232022 Q4 Earnings call transcript

Greetings and welcome to the Tupperware Brands Corporation Fourth Quarter 2022 Earnings Conference Call. Please note, today's conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]

will Investor conference Relations I Lane, to time, President, Vice and this turn over the Doug At Strategy. Mr. Lane, you may begin.

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

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

be our remarks. We available Q&A for following will prepared

management our is Investor of related the this can XXXX, open completes Earlier announcing be we preliminary Relations for and results found with a issued financial morning, our website. to which release Today’s the as release on procedures audit end press preliminary fourth matters. year tax quarter external mainly items

we quarter note earnings Before our that first will we the be changing XXXX please started, release, reporting beginning get schedule. with

morning quarter AM XXXX We and the tentatively Time is at X:XX a hold will on continue to tempt. first Eastern to our scheduled make conference Wednesday call

our night However, release we after close. earnings will the market issue the before

commentary will and time website, post us simultaneously our after that into on to will before jump models update digest everyone way would to the remarks. call. right the a also We brief call when It allow of plenty the management Q&A have introductory news

this just back quarter Now, to reported.

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

page impact today's financial in the statements will release. filed results and five on our potentially morning. release be our could the that year, fiscal press review XXXX for this factors subsequent Form press of forward-looking in about XX-K information filings disclosure Additional our Please SEC included with

foreign reflects continuing basis, results, unless period the rate current any references, a also foreign application excluding of made Please on currency period on note being of exchange references basis. rate that being Please a operations made the all note comparisons, fluctuations. impact noted, prior that constant otherwise to the exchange are currency enabling some which are

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

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

this on our today. be Finally, Investor a will Relations later replay of website available call

Miguel. with the And to you, turn me call over that, let

and quarter proved Thank a than our we you, selling our welcome turnaround our more call. ever to bullish started direct XXXX everyone, challenging business. to much that fourth on morning, Good could be expected. in We efforts Doug. year year

that us of behind stock confidence Excited XXXX to expand distribution, to the led new February. in That into and optimistic the a of year us. $XX authorize channels outlook early our was inflation in of million cautiously surge in buyback

initial as Well, for changed it out, turned quickly. XXXX outlook our positive

by China in was Europe Our excitement in and a general in the conflict March. dampened in COVID February lockdown

impact also had in the we major These We interest challenges. events, dollar inflationary on to and rising in external actions, efforts, pressures, coupled rates, all performance in channel strengthening past, financial half meaningful XXXX. reacted plans. leadership made consumers throughout selling compensation further a focused pricing took globally, our and our our and ongoing executing second with the In plans direct But of while expansion implementing as we changes year, took rightsizing quickly further improvements additional the staying on mid-year.

for the turn a let but make the around it brand. and as results as was will to foundation test XXXX, turned summarize channels, me and new as our highlight accomplishments more first that we our real expanding will moment, build out In XXXX, of iconic a a to a future. to successful continue this company recent company big

flexibility and to like. higher our primarily with to accelerate recent to our at last First, agreement leverage efforts. additional had growth our year Late than we we increase to operating year, flexibility. to banks financial time financial financial year, Due our the rightsizing strategies credit last this our discussions amend much pursue same our would performance and allow is us

a and came the difficult. talks market successful our support completion as to became we recently provide lenders appreciate conditions more The us continue even to

channel environment results us did in XXXX, the growth quarter difficult external faced launched category allow to a national challenges market We exited expectations most those in we our share. unexpected we with our as October. U.S. early Despite from the throughout in stores initiatives. successfully expansion. Second, derail Target X,XXX we important distribution not The the XX% exceeded

good carrying are into So we momentum XXXX.

strong BXB year difficult in strongly the sales there China look in conditions grew despite year another double-digits small, still last XXXX. While in we for out and

of number XXXX our in XX added around the customers chain markets. fact, In BXB reporting XX the was activity markets In retail total, we world.

a imagine, As distribution very is direct proposition into different selling products may a operating selling chain model. retail from you

As Korea was new strategy the XXXX, In Indonesia, growth third such, push in behind an market among consumer-facing region, company our consumer is Malaysia. had and direct-selling the markets Pacific better process success omni-channel Korea we within building the largest showcase building most the legacy a no year. Perhaps, in Korea company. last of surpassed Asia in for our China are our advanced ecosystem. we

XX last Korea core constant expansion, percentage currency points as XX% total, BXB and year sales in shopping particularly middle single-digits TV in added to In increase grew in over growth.

around best the are from this in sharing throughout many success world this XXXX. learning are markets We practices and

expand initiatives these to the early strategy that still distribution to beyond it's of help growth channel. days, consumer access the products validate direction our While our

where over product past iconic traction We product many successful to new into Third, with year. product may we goal Tupperware gained really resonate consumers. that It's last the of believe continue the introductions. years our to brand introductions new couple categories, had move

with fryer. into appliances air highlighted was entry Our small

to fryer Philippines, we launched India, its launch success, EMEA, similar its late to XXXX success. expanded China. We air in Due Japan, showing

uses herbs year successful most quickly up a was SuperSonic Our which conveniently pull vegetables. the product cord chop Chopper and introduction compound, and to last

for year. categories. year, accounted This products sales new New of into moving are product XX% last we

such Ovens. as Dutch cookware iron cast the be will First

single-use bags we designed replace a Second, introduce releasable the bags. unique silicone will to plastic that are

system innovative an filed have seal for. has that we patents system Our

Every are can. single-use we looking unit. year, used million worldwide, XXX anywhere reduce plastic we over bags billion bags X At which to over Tupperware, single-use are is every plastic

rightsizing. Fourth,

As we call, cost an in to the three reengineering over $XXX spend said next look last we in million years. our additional

fact, In we end supply business of slightly the the ahead more the By scale. optimization. and to we're cost $XX remain We program, of manufacturing annual savings. realize expect to chain running in rightsizing than in further million committed

of fifth, improve levels. to service And spring, us our us we network turnaround we In better hired optimize a President Last our chain CFO to hired and the a new new help Vice plans. chain help new supply supply Executive navigate summer, leadership.

through accelerated activities, that and efforts seeing first We results successful five our the we've are in expansion channel already had years. reengineering closure facility

Officer, Chief of commercial And finally, established we infrastructure. of growth quarter, while delayering lands go-to-market our who new oversight holistic a our provides last and of position Commercial simplifying

pivot our where post-pandemic as Now plan the we toward to focus of we XXXX phase our plan. efforts to let's turn next

our the keep during direct in stages First, activities. burning that storage out pandemic. early of selling the in-person virtual that business, the of a At introduced phasing are in the recurring time, the kit we to way limited engine time was we it

with we However, discount were that lower found more we brand. given price relative this retention buyers point, to the inexpensive attracting

recognition to to in-person we that's swing recent kits, and elimination which With returned virtual gradually pendulum the the of most since back expect the training where events effective. builders benefit should business the is from also

days, already movement the early some selling it virtual favorable While have where kits. markets is we we those seen in eliminated

is on are We to to reliant by purchase force China, run particularly also the expect phase consumer markets where of location operate to mobility, post-pandemic the Many member models In increased locations, traffic. our our consumer consumer products. from benefit these in our a Asia, into sales foot

COVID consumer as to products. access very China the XXXX. impacted a XX% difficult on policy were had down Sales our year zero

course, that the to Now reversed in improve progresses, there as remain business market we year the China has uncertain. government but conditions the expect

the digitalization. been lockdowns, has the the during the to digital of advanced of most our regards spot bright adoption the tool, the – among China markets with making One eTup

productivity; drinking XXXX small improve and channel bottles, retention the products China and e-commerce; accelerating including working structure BXB launches and cost initiatives to cash such capital flow. appliances; digitalization include, optimizing in improve trend casserole our Our on-the-move cookware, and for as and expansion, new to

recurring and XX% adoption of our well among The lower overall to U.S. volumes impacted plan a price were were due by and compensation four, down sales longer-than-anticipated as down as increases. in Mexico and productivity, Sales the by force U.S. low Elsewhere our big impacted U.S. Mexico change. was X%. in further was the XXXX,

be twofold. in focus for Our U.S. the will XXXX

systems both service delivery in improve and reliability. product First,

While we day a space created sales smaller new from are make a with force, to we the money for have one. members year entering

productivity will improve. and retention think we So

force sales this promotional Additionally, lower the members in-person we top-line events, of drive income to help activity coupled believe the year. that increases the level greater a with should that growth number

introduce of efforts to core Second, invest retail lids, mate with products TV open In easy-to-close in newest products. and is we such as BXB we home will food will categories and our well savers, in shopping. and food as new freezer storage as packable continue fresh one-touch cold storage our containers our in Mexico, global which one

momentum and the improved an programs, with with XXXX good second currently fourth the brand into is we're Tupperware retail Brazil direct that, and loyalty the pursuing for a selling half opportunities e-commerce, sales carry up to of premium along year. Brazil the quarter, which were Added This, in BXB. expecting should the XX% partnerships business. to year ended in service growth stores, toward

healthy for our our remain flow it's very even Finally, and Mexico worth direct-selling together business. and and more eight-quarter that sales of operating over profitable cash and noting Brazil of they account

Mariela. you, Now to over

morning, Thank everybody. good you, Miguel, and

file get procedures audit today we I preliminary our to our started, open related plan Before items with are We results our of XX-K XX. tax. March year-end as internal before complete to that please note deadline and the announced

declined year the $X.X XX% billion. full sales XXXX, For dollar-reported to

extra X% Excluding approximately declined a in more growth. offset XXXX also an about an was currency unit for of provided benefit, volume by accounted for decline X% unfavorable which XX%. week, sales XX%. which of had exchange, than Pricing

local to declined product delays government higher prices, caused essentials. impact currency in and lower by Pacific mainly spending in sales China, lower COVID removal availability, recruiting food force related our in consumer overall part Asia in subsidy activity. and in region, lockdowns of Malaysia logistics that By XX%

lower driven by earlier. increases. decreased sales spending, highlighted gas force the activity offset in Korea, XX% prices continued in These higher and as performance Miguel higher sentiment, were inflation, strong consumer deceleration of currency, and lower Sales partially in consumer of because local by price Europe

mainly segment of transactions, our was by negatively timing BXB the addition, In business in Germany. impacted

internal We are Europe started signs our the since of XXXX end is beating and similar XXXX, forecast in fashion. a showing encouraged that stabilizing of

recruiting the United in compensation changes Canada XX%, from force longer-than-anticipated activity, due negative plan sales America of overall price States and sales impacts lower North decreased increases. to and primarily adoption and

in see to We expect economic began that will XXXX. improving the sustain in QX we profile

Thus, America as due sales driven and to increased XX% currency, as inflation. prices from including sales by a higher retention, Argentina total higher from larger active primarily well in local force, productivity, higher

the the XXXX. trends did a quarter, than in will optimistic lower XX% in coming closed we the top-line in and With pressure momentum sales out XXXX, about Argentina continue for Brazil, Company-wide, XXXX active with fourth we this our the which direct region in business. are we to of force selling

offset expansion somewhat small channels be a are business. those should by as this overall still our relatively percent BXB elsewhere, of While

mix, well XX%, XXXX. manufacturing Gross benefits higher lower is as and the and points resin variances basis offset costs, primarily increases. product other higher to to margin XXXX as volume, a decrease price was due decrease from adverse The XXX in by inefficiencies the sales inflationary of due partially pressures, from

realized. year margins time year quarter in our fourth actions were on first from began benefits throughout year in the pricing for six the the up be the as quarters to Gross

assumption the on the in fixed force. sales a of about costs cost investments in-person administrative expansion XX% of BXB XX% as for meetings events growth general, and expenses, initiatives, and our percentage XXX lower sales in selling basis the as increase compared and such XXXX, return in at and Selling, U.S. contributing higher XXXX, points SG&A, with was to with in a incremental sales on the

half loans interest from risen the We in spread as decreased also well expense that in decrease amended increased $XX.X a company of points change borrowing, of the the of million to on a a as of rate has XXXX late have XXXX to recently Interest term is interest in debt refinancing the debt million. slight related expense points of a decrease six in the the credit percentage the $X.X rates as by in the result and second pricing XXXX. result the as basis interest in note agreement. our The

XX% tax rate mix what as income, the over well than that tax expect assets in XXXX. The our Therefore, primarily XXXX unusually pre-tax as high in meaningfully to of interest XXXX, was represented expenses we due we will higher effective of earnings. of reported deferred write-down in jurisdictional

future. tax to elevated expect We rate the the near remain for

earlier, design presentation and and controls our income be related include in material to of March also published the related by accounting the as In weakness process of did occurrence, disclosures not the tax we the provisions, income XX-K and maintain and XXth the for or tax tax to assets accuracy, effective internal income company completeness, liabilities. will

Adjusted EPS tax was rate and due volumes a with higher above, to sales mentioned lower margins adjusted XXXX. than lower in coupled

was currency EPS to year. for hit $X.XX share foreign at per Additional the

now our second, XXXX, maximum are to leverage our X.XX. Our X.X, quarter and and In was XX-month and bank X.XX fourth XXXX, leverage agreement then new this to maximum for credit quarter week, second trailing of XXXX. recently our of beyond stepping within first, quarters increased. amended of amended and ratios of quarter ratio for fourth a covenant They the the X.XX leverage ratio in stepping down quarters first the down the for third third quarter announced X.XX

is no offset will as longer we There the with numerator balance cash. since debt net in change also our

the in leverage example, under been have XXXX new ratio would quarter X.X the fourth For formula. our X.X

As and simple, our financial are continue our we up on foundation XXXX shore goals in growth our book financial invest close initiatives. to the for XXXX,

increases margins additional We with will necessary. protect gross price as

as consumers shown have in we supply the of have products, them. consumers investing creation We Target in cost most will to successful a footprint. optimizing reach and Meanwhile, U.S. products, they rightsizing healthy us. omni-channel access focus laser new and our manufacturing to and and entry inventory ways our on new our in to stores and choose are chain reducing our Tupperware categories a new Korea fixed our have When ecosystem importantly, base levels

will line for we open questions. the With that,

comes [Operator instructions] Your first question Sidoti. line of Anthony the from Lebiedzinski with

thank the taking for questions. and Good you morning

see about seen COVID to any you if zero since first improvement? have So, should think what can seen you wanted we about China, Have the that? talk you they stopped incremental guys policies? How

morning, This So, Miguel. hi, is Anthony. good

opened people was actually, bit of more it way people were right? is revolution that own week saw taking when last in up, The it it the outlook because of a a sick, little of we So, I care health. their it got obviously, positive. small was China. much mean, lot a But looks

get coming are is wait to I as to months. next need in But we a four said back previous obviously, this And people consumer remarks, new that normality. for my Obviously, see reaction China better. only in going the we three, to

it. Target any sales then these other in sales – – can channels? sales of you some the there some And that, is can of to quantify you Miguel. terms for other guys activities, to talk of guys expansion Got and way can and expansion the you Target Thanks about channel

thing. we So, the obviously, me start with let important just most –

also and them. offers with expectations expectation of in ahead our are Target's initial We our

are company, around it's bright initiating, all of the retailers spots overall the Still, relationship obviously, one just these world. with we our XXXX. of So

material going to growth in yet, high not that area. we obviously, it's but So -- it's expect

So that's we right what share now. can

as new it, that. update over with this rate then, as as should credit Thanks question. we the also Got our interest what's far just new for And as And about a the Mariela, – other switching okay. as think credit models that as far agreement, we just agreement? quick

kind As XXXX? rate the obviously, elevated, for tax right about was way far to think the the as rate, what's of tax

you, Thank Anthony.

gross profit this ago. was profit had answering start release million correct the is and that your for error year of appendix our let that $XXX and out for the fourth clarify quarter, So, the million point me before the quarter and the $XXX.X was fourth for gross it questions, an I in it press quarter the

So about question let now me interest your answer rates.

as and you trend have results. as agreement, – the interest in trends you our would is our market seen, continue result we macro expect the as bank the will increase trends, QX of a saw you well As it as that to as rate going the

also, the of you was fourth then, high just tax terms just obviously, unusually And gotcha, in expense you quarter. tax Okay, could this the okay. that an – in rate if had

just about forward? could us tax you help If going here the rate think

our rate, the for over the of continue income. write-down In XX% a have year, expect this valuation of we of so, tax pre-tax those the rate to our When items Yes, one-time to elevated. tax write-downs, exclude we tax deferred our be series related we was assets. to

So – we in plans rate are years. still coming to the normalize have tax the

write-down. excluding expect deferred I the the assets rate higher, tax these to will year, For tax next be

Understood.

Well, it. all I'll pass I Okay. that's have here.

And we it countries expanding match several countries our care retail then are process tax the that, in plan time of we and where are of rapidly as some tax also do growing. strategy, finalizing to strategic take structure to our would complement our channels and growing we the our to

understood. Okay, the on Best pass and to next I'll of caller. you. Thank luck, it

from Bender next comes with Your line Chasen Citigroup. question of the

taking everyone. inventory like talked Great. at inventory were the what the I'd management you've inventories efforts. about Thanks for Good the start the on Can you question. end tell side. quarter? Obviously, the morning, to of us

to XXXX, of the sort within covenants? been so, opportunity of of how year, of that is new much dimensionalize to inflation And inventory what you levers way there of volume reduce one given this how just up financial much staying kind is that's you for there compliance that there going a on any to is in probably basis? be And in pull given those is cost

to morning, with – Chasen. going good I'm So, the start

over then the I'm exact and can going to I Mariela going the ways to with start am number. the to going you she it pass so inventory to lower So give we're

started and promotions and also are the sales our force is the doing, our that have over we're incentives giving, product that QX we're of and doing giving activity differently all all in that we're inventory. basically, So, we this in what the promotional we we're prices year to that that

So, and they a is we they can the actually top that to untrap us get has been they earn this inventory priorities, more very gift basically proving expecting. of and can our one again, money because they gift, successful for lower were And so resell cash. the what that even very, than

down numbers, which repeat can in And to for a million I the coming plans million of trend $XXX to quarter and we with with continues complement the that was about - we have ended if repeat $XXX the year ago quarters. the inventory, reduction

for And the Got the it. of in the the with got you've and that. to updated Thanks said as compliant of and cash you've just management it Obviously, credit relates vein kind staying expect inventory amendment, to you a that little agreement. the room clearly, remain and perhaps the to on some your over can assumptions in of coming just with breathing you compliance of that underpins bit that you years. kind But more have remaining and confidence confidence? speak in business that for touch

Yes, process. negotiation have bank – so our our a with we across very group supportive

company We of consumers plans than year in EBITDA years plan produce have in plus XXXX, look them. the capital and will Tupperware products working to management, we where past to produce company right-size this come from continue re-engineering as better the and that our continue channels as the all for EBITDA to well in place a benefits as to this cash our generation

to generate cash turnaround bank as then and now plan for allow year continue the continue to So will company the XXXX. we us the to a expect agreement

in be So substantial we doubt operate are a without we today, to that as will of confident XXXX. able

switching you've pricing I further increases 'XX. that. it. side, And gears, for just believe price in Got the mentioned on expected then, Thanks

around those so, wrap to can the still wanted color if kind might the case. confirm magnitude that's what of if increases some Just of be? you And

trade-off impact last to in the we're you up seeing And the dimensionalize shaped your do then expectations. how America? like of season, prices taken managing between can the of markets less flow through compared North perhaps about think 'XX And these clearly, the you you've the have two? how on But

Miguel Chasen, again, So, here.

U.S. the year pricing XXXX the point a in was basically, So really tough from

took we As everywhere even never in inflations you increase double-digit – high. the taken know, we that world, countries price years. in We a a increase price had haven't really in we've ten

and one that and that obviously, an in of had consumer had was impact sentiment the we year. last consumer that big headwinds So

we what price of that different, back very don't higher so been is this we our normality different. are expect countries which doing is in year, for anything increases, This have they going inflation, to we've years, which the

less In mix, less than in are that in variations the margin. taken to a mix that haven't range that that We're ones but perhaps good our we than space. The see feel we we're or going we're you be traditionally already the take to product we we're X%, protecting We X%. in. either country or take want

to we're in one big is that So that of going the headwinds have XXXX.

color. it. Got I that appreciate

I And to omni-channel sorry, would for sales get these of the in some efforts were and structured and originally the expansion hog. such additional that they I one just be small a that from augmentative they one, a Target being relatively last to efforts way get the apologize that and force. I are still

the that on quarter, the they is been from with two the get behavior are the now has any available a the force not competing effectively there But sense, effectively Target? that been that same sort word, in exactly I competing has is time. attitude now at that sales a and members for but are, change now or product in And live shelf of product

So you're right, competing is right not word. the

balancing. it's think Korea as I But for previous an a works I gave and it's omni-channel we is really mean, more the a I ecosystem, perfect if well. us create we remarks, it some learning than them example, ones. other and when grow obviously of think in

chosen that U.S. products very the similar, couple that are are a In of we've sell are in products ones terms other of but the never them just the U.S., we

brand and them which of operate And top lines, the way sell relevance. this brings that in want because sellers them used to time to the ago U.S., long we it is some are we heritage are but the

retailers, made like, brings also it, it's in – that we not advertising And that brand we right accessing of money iconic and brings that now. to the but obviously we paid these want to to it mind call we're Tupperware we consumers it because the going make brand I'm have

So, of there. time matter a to it's get

our we very remember to got is whereas amount any different you Target. XX% a SKUs, to force, now, sales on going coming XXX have to they Target But of sales call is, am that X% limited sell direct month, selling. from given in probably they normally, Right it, X% and our over I

obviously, – now, a the journey to learn. is force. penetration it's right it's So and any we're sales change that going to such we But our seen behavior has – low haven't continue in Target of

Got color. on pass Thanks, it. Thanks, Mariela. Appreciate here. I'll it the from Miguel.

the Linda line The from next question comes Bolton Weiser. of

Linda?

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Operator?

might on on It side. Check our our side. be

No.

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you us? Operator, hear can

just technical do apologize. I Yes. had difficulties. I

hear But cannot we Linda.

Her line is open.

you Can hear me? Hello?

Good morning. Yes, Linda. Hi,

Nice you. to hear

actually if So the freight you're environment, plastic down don't kind starting just are that seeing because know comment on or on of like to can things things? resin what and lot down, cost you shipping. not on of comment kind you come actually, cost seeing just of elements I you're of and coming a the side Can

cost China as levels up, we Linda, I in the the ecosystem. we an Yes, was QX, opened to driven average some have well by as we logistics and increase when across in it service had saw improve our still plans in think input disruptions Tupperware

go seeing cost what to industries. line resin with as in you're as we logistics in other well of our XXXX, our For chain supply cost down, expecting some are

things had I like the – you be that? company. thought in And bit mentioned talked thoughts about might then in think needed your that capital little to what in What past, a And maybe Okay. there the spending Mariela, on like investments you have some done XXXX? are IT on do be are a or that in

some our delever similar so, put our reduce continue our decisions what we over with balancing to company this Yes, CapEx plan and debt in to desire is time. executed and investments we that XXXX. to prioritize We

our and sales online, and as allow continue network those those some our dedicated well upgrading global digital investments be force to to time to infrastructure transact investments are internally to And to upgrading time. from of standard as our

as slow as our to holders, them. down other pace balance with the commercial the continuously plan We well our debt may in with obligations investments

Okay. and gone went at next – to SKUs and And and there I didn't array looks your it see, the it off a shelves I I nice, it nice then thoughts see all any quickly. it Target, then was the did and are replenished was then, time see product very of very

So, you like going? trouble Target actually you're supply replenished have that well so that done at is having keeping how or the

So, going fulfilling we've We expectations. and really our It's better expectations it's than the their that going well. been know we Target way agree with.

time every a obviously, the being POs come it's in, -- we're So big priority.

for It's a priority high us.

going a us luck. So, might mean bit been of in back have for well well, in been probably are I But logistic yeah, I sort of that think things it Target. really little a issue within Target. It might have

a I stuff. settled just more give and because matter it changes North can maybe before then, decline, those the color And little you of plan Okay. know did on out a make some and you kind like got comp time of American was

still and disruptive like on in get then, you color some it can the was the situation better or is change? so plan give And just that that is comp kind going there? So, to of place, what's why

many we what growth. going sustainable and better obviously, better from of call growth going I points it's to view, to it's from profitable this but believe be get So, is

variable the grew just way was every much. our that cost as was designed grew, before it we time So

growth of terms the on capitalize couldn't bottom-line. we in So

a and change friendly and their to are came their competitively guys and from We leaders, compensation pay the few beginning. under we on So the big of the other compared attitude. believe morale the top guys, so which we're made the impact still on changes obviously an little that has other just compensating companies

a kit, get implemented the into of to When was discount. would it and in business we which free is much the immediately almost visual COVID, XX% were we which pretty maximum get discount,

obviously, a proposition is a XX% has everyone business not person basically, space a that make that I who money. consumer, because, for but friendly proposition starting the have don't to for So so friendly discount, to our is access a

that that was that to believe They higher go the start it's are guys. And are down, made. the going recurring our the recruits change other they're making we So that making eventually to going numbers are eliminated people were we they're going make then We Obviously, the top going actually eventually money, to absolute going where have before. and the but dollars going as we are benefit to virtual money. people, business-oriented back volume to have to go that kit. to new

on Obviously, the solid the ago. look better months have a now in foundation sales, sustainable hit on we profitable, used and the look six than U.S. but build the a to profit a on took to they return now business. right We sales, much margins

you. much. That's very me. Thank I for helpful. that's Thank all guess, Okay. you

Thank you, Linda.

further call no are turn now will the this There to Fernandez over questions at remarks. Miguel for I closing time.

for being Well, us thank morning. with very this you much

Looking forward three months. to seeing you in

We the big where are brand. as going belongs build as make and it our to company this continue to business to

much. very you Thank

today's call. concludes This

You may disconnect. now