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Q2 2013 Earnings Call
Good morning. My name is Kimberly, and I will be your conference operator today. At this time, I would like to welcome everyone to the Tupperware locker wallpaper Brands Corporation Second Quarter 2013 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to your host, Mr. Rick Goings, Chairman and CEO. Please go ahead, sir.
Thank you, Kimberly, and good morning to everyone. locker wallpaper For me it's good night. I'm in Manila, Philippines for a leadership seminar. Mike and Teresa there are in Orlando, and I would say that if we have any disruptions locker wallpaper with the telephone locker wallpaper service, Mike and Teresa locker wallpaper will pick it up from there.
As always, similar discussions will involve forward-looking statements about the business, and you all know the drill about this. By the way, in an effort locker wallpaper to really improve the clarity and crispness of our communications, locker wallpaper particularly on a quarterly basis, you'll notice that we've gone through a new format. We sought a lot of input from what we believe were the best in class with regard to financial reporting and -- plus we want to thank a number of you that gave us input.
Frankly, we thought the inclusion of the business highlights section in each quarter in our earnings release locker wallpaper could be really helpful in tracking performance in a much more substantive way. Also, for those of you on the call, we've added a presentation on our website to coincide with the call, so those of you who are on the webcast, you can see it. Slides will automatically change as we progress through this call. And there's some supplemental information as well in the appendix. By the way, the presentation is entirely available on our website.
By the way, we will also -- we're going to adjust to this new approach, and Mike and I will do our best to guide you through what slide we're on. And as we're on each slide, I'm going to do my best not to simply read slides to you. Number one, it takes too long; and number locker wallpaper two, it's boring. What I'll try to do is paraphrase what's going on.
Before I get into the slides, let me make 4, I believe, important points that really reinforces this business model we have. Number one, we are a business that generates strong cash flow, and what we do with that cash flow mostly is return it to our shareholders. We do that primarily through the support of the dividend. As you know, we've moved our payout ratio to 50%. The yield right now at current stock price is about 3% plus. And with regard to share repurchase, we'll do about $400 million this year. That's about 10% of the market cap of the company. And we're going to do about $100 million locker wallpaper in the second quarter and $200 million in the overall locker wallpaper first half.
At any rate, you'll see Michael get into more of this, but what we're really locker wallpaper trying to do here by this mix between raising of the dividend and share repurchase is to maintain the flexibility that we believe we need to have to be committed to this dividend yield. And ever since the company went public in 1996, no matter what we went through, we've been always committed to dividend. We're going to stay that way.
Number two, we are an and story. Some people tend to think we're just an emerging market story. We're very much an and story. The established markets of the world offer high per capita locker wallpaper income, but at the same time, they're not going to offer much growth because there isn't much population there. But we have discovered lots of white space in those markets, so we'll continue to grow in those markets. But the real engine of growth will be the emerging markets of the world. 87% of the population lives in emerging market. So we're an and story.
Third point I want to make, the levers that are disposed of in this business really provide the opportunity to mitigate a lot of the negatives that are going on in the world: political disruption, locker wallpaper economic issues that are going on in different markets of the world. And as I get into my comments, I'll drill down on that.
And fourth and the final -- the fourth thing I would really mention to you is that our penetration, it's still early days for us, and we've got a lot of runway left. We've got runway in established locker wallpaper markets locker wallpaper where there's this higher per capita income. locker wallpaper And if you think of these established markets, almost like the high-density metropolitan centers of countries like France, Germany, Italy, that's where we're under-penetrated, because in the past we simply didn't locker wallpaper have the product line for younger working women who really don't want to cook but they still love our product line. We've also had to alter the way we sold, and there it went from a traditional Tupperware party to a much more of a girls night out.
Now in our emerging markets, it's just a question of 2 things: penetration, we're at very low levels; and productivity gains of the party, as we introduce new products. So we really locker wallpaper think we're going to grow in both of those ways. So that
Q2 2013 Earnings Call
Good morning. My name is Kimberly, and I will be your conference operator today. At this time, I would like to welcome everyone to the Tupperware locker wallpaper Brands Corporation Second Quarter 2013 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to your host, Mr. Rick Goings, Chairman and CEO. Please go ahead, sir.
Thank you, Kimberly, and good morning to everyone. locker wallpaper For me it's good night. I'm in Manila, Philippines for a leadership seminar. Mike and Teresa there are in Orlando, and I would say that if we have any disruptions locker wallpaper with the telephone locker wallpaper service, Mike and Teresa locker wallpaper will pick it up from there.
As always, similar discussions will involve forward-looking statements about the business, and you all know the drill about this. By the way, in an effort locker wallpaper to really improve the clarity and crispness of our communications, locker wallpaper particularly on a quarterly basis, you'll notice that we've gone through a new format. We sought a lot of input from what we believe were the best in class with regard to financial reporting and -- plus we want to thank a number of you that gave us input.
Frankly, we thought the inclusion of the business highlights section in each quarter in our earnings release locker wallpaper could be really helpful in tracking performance in a much more substantive way. Also, for those of you on the call, we've added a presentation on our website to coincide with the call, so those of you who are on the webcast, you can see it. Slides will automatically change as we progress through this call. And there's some supplemental information as well in the appendix. By the way, the presentation is entirely available on our website.
By the way, we will also -- we're going to adjust to this new approach, and Mike and I will do our best to guide you through what slide we're on. And as we're on each slide, I'm going to do my best not to simply read slides to you. Number one, it takes too long; and number locker wallpaper two, it's boring. What I'll try to do is paraphrase what's going on.
Before I get into the slides, let me make 4, I believe, important points that really reinforces this business model we have. Number one, we are a business that generates strong cash flow, and what we do with that cash flow mostly is return it to our shareholders. We do that primarily through the support of the dividend. As you know, we've moved our payout ratio to 50%. The yield right now at current stock price is about 3% plus. And with regard to share repurchase, we'll do about $400 million this year. That's about 10% of the market cap of the company. And we're going to do about $100 million locker wallpaper in the second quarter and $200 million in the overall locker wallpaper first half.
At any rate, you'll see Michael get into more of this, but what we're really locker wallpaper trying to do here by this mix between raising of the dividend and share repurchase is to maintain the flexibility that we believe we need to have to be committed to this dividend yield. And ever since the company went public in 1996, no matter what we went through, we've been always committed to dividend. We're going to stay that way.
Number two, we are an and story. Some people tend to think we're just an emerging market story. We're very much an and story. The established markets of the world offer high per capita locker wallpaper income, but at the same time, they're not going to offer much growth because there isn't much population there. But we have discovered lots of white space in those markets, so we'll continue to grow in those markets. But the real engine of growth will be the emerging markets of the world. 87% of the population lives in emerging market. So we're an and story.
Third point I want to make, the levers that are disposed of in this business really provide the opportunity to mitigate a lot of the negatives that are going on in the world: political disruption, locker wallpaper economic issues that are going on in different markets of the world. And as I get into my comments, I'll drill down on that.
And fourth and the final -- the fourth thing I would really mention to you is that our penetration, it's still early days for us, and we've got a lot of runway left. We've got runway in established locker wallpaper markets locker wallpaper where there's this higher per capita income. locker wallpaper And if you think of these established markets, almost like the high-density metropolitan centers of countries like France, Germany, Italy, that's where we're under-penetrated, because in the past we simply didn't locker wallpaper have the product line for younger working women who really don't want to cook but they still love our product line. We've also had to alter the way we sold, and there it went from a traditional Tupperware party to a much more of a girls night out.
Now in our emerging markets, it's just a question of 2 things: penetration, we're at very low levels; and productivity gains of the party, as we introduce new products. So we really locker wallpaper think we're going to grow in both of those ways. So that
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