Tupperware Brands Reports First Quarter 2019 Results

ORLANDO, Fla., April 24, 2019

Tricia Stitzel, President and Chief Executive Officer, commented, "We delivered local currency sales and earnings per share within our expectations in the first quarter.  Our results included sequential sales and sales force trend improvements in several of our units including France, Germany, Indonesia and Italy, and a five-percentage point sequential sales improvement overall."

Stitzel continued, "We are beginning to implement the detailed project plans for transformation initiatives that we announced in January aimed at enabling sales growth and providing some future direct annualized cost savings.  In the near term, we are pleased to see sequential improvement in sales as we continue to stabilize the business during this transformation period.  We are also making good progress on our access and engagement strategies through studio expansion and digital deployment."

First Quarter Executive Summary - (Comparisons with First Quarter 2018)

• Net sales were $487.3 million, down 10% (2% local currency).   Emerging markets**, accounting for 69% of sales, were down 11% (down 3% local currency). The emerging market operating units with the most significant local currency sales growth in the first quarter were Argentina, China, CIS and Poland, more than offset by significant decreases in Brazil, Fuller Mexico, Malaysia/Singapore, India, Indonesia and Turkey.  Established market sales decreased 7% (2% local currency). The local currency sales decreases were most significant in the United States and Canada, partially offset by significant business-to-business (B2B) sales in France and Switzerland.
• GAAP net income and diluted earnings per share were $36.9 million and $0.76, versus net income of $35.7 million and $0.70 in 2018, respectively, primarily reflecting lower unallocated and re-engineering expenses and a lower tax rate, partially offset by lower profit from the segments.
• Adjusted, diluted earnings per share were $0.90 compared with $0.91 in the prior year, up 13% in local currency before an $0.11, or 12%, negative impact from weaker exchange rates.  This was within the guidance range provided for the quarter in January 2019, and versus 2018 reflected lower unallocated expenses and a lower tax rate, partially offset by lower profit from three of the segments.
• Total sales force of 3.0 million was down three percent compared with the prior year, and a two-percentage point sequential improvement from the fourth quarter.

First Quarter Business Highlights - (Comparisons with First Quarter 2018)

Europe: Segment sales were down 4% (up 8% local currency).