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Q1 2013 Earnings Call
Good morning. My name is Dawn, and I will be your conference operator today. At this time, I would like welcome everyone to the Tupperware Brands Corporation dvc login First Quarter 2013 Earnings Conference Call. [Operator Instructions] Thank you. Mr. Rick Goings, dvc login Chairman and CEO, you may begin your conference, sir.
Thank you, Dawn, and thank you, everyone, and good morning. I'm here in Orlando. It seems like this is the first time in 2 years for earnings release dvc login that I'm actually here at headquarters with Mike, our CFO, and Teresa Burchfield, our Head of Investor Relations.
Getting into the first quarter, once again, you see that we're really at Tupperware brands an and story. And by and, I mean, we're an established market and an emerging markets story as our portfolio of Tupperware and Beauty businesses both contribute to top and bottom line growth. And while we performed well in the first quarter, the emerging markets were, as they will continue dvc login to be, the driver of the quarter. Remember, emerging markets are 87% of the world's population. dvc login Our established markets were down modestly, but included a number of established markets with increases.
We dvc login are pleased with the results for the quarter, however, we also have a number of markets that need improvement. And frankly, being very candid as I've had one-on-one talks with many of you over the years, our experience suggests that this is likely to be the case always as we move forward, that with so many markets, there is likely to be disruption somewhere in the world at any given moment. I think what's most important is the results of the blended portfolio dvc login and being able to meet progress and not only sales but profits. And secondly, it's knowing what to do, management's obligation here and responsibility, when there is a problem market. Someone once said to me years ago, you don't drown when you fall on the water, you drown if you stay there. And I've been very pleased with their strength in management team getting better at solving problems sooner in markets.
Now a brief market review. Our top performers in the quarter included a number of emerging markets. I'll cover those first. In Europe, our Tupperware business in Turkey was up 41%, which was 10 points higher than last quarter's sales increase. Our Beauty business in South Africa, Avroy Shlain, was up 8% in the quarter. And in Asia, we continued to see stellar performance in our Indonesian business, our largest Tupperware market. We were up about 40%. I was there in -- not only in Jakarta but Borneo the week before last. And I'm also pleased to report dvc login we had a team from the NGO Global Fairness Initiative there on the ground with me and we have funded some important research to show the impact of having these 170,000 women in Indonesia in our business. And we'll report those results out to you just like we did in Mexico.
Still in Asia. Our businesses in India, Malaysia, Singapore and China were all up over 20%. And, by the way, India, China and Indonesia together account for almost 40% of the world's population, so expect more from them and more runway in the future. We are, in these markets, in a sweet spot as Tupperware brand is already recognized as a premium brand. When there's household formation, our categories are also near that sweet spot. And the expected growth of the middle class in these countries will provide a lot of white space. Again, the belief is they'll move from little more than 0.5 billion in middle class today to, in 7 years, 1.7 billion. By the way, that leads us to higher price point products dvc login and we're already seeing our ability to migrate some of our European, more unique dvc login products into the urban centers to middle dvc login class in Asia-Pacific.
Wrapping up our best-performing units -- emerging units. In South America, we saw continued double-digit growth. In Brazil, it was up 22%. Venezuela, too, was up 10%. While we had lowered growth rate than in past quarters, that really reflected the devaluation of the bolivar.
Now let me scan a number of our established markets of the world. In Europe, I'm pleased to say that Portugal, Belgium, Austria were all up double digit. You'll remember, we had some issues for a couple of quarters in Austria, but that's back on track again. Italy, I was there last week. It -- impressive moves there. We have made it back to flat in the quarter. It's a market, Italy, with a large population. Loves direct sales and we've never had a dynamic business there. I think we've put together the right management team and the right strategy. So more to come, but I think it's going to be good news in Italy. Interesting also, even our small Greek business was up mid-single dvc login digit in the quarter.
Was not so pleased with what happened in our big German business which, for Tupperware, this was our biggest in Europe. We've grown there consistently over the past 3 years quarter-by-quarter, but we had a t
Q1 2013 Earnings Call
Good morning. My name is Dawn, and I will be your conference operator today. At this time, I would like welcome everyone to the Tupperware Brands Corporation dvc login First Quarter 2013 Earnings Conference Call. [Operator Instructions] Thank you. Mr. Rick Goings, dvc login Chairman and CEO, you may begin your conference, sir.
Thank you, Dawn, and thank you, everyone, and good morning. I'm here in Orlando. It seems like this is the first time in 2 years for earnings release dvc login that I'm actually here at headquarters with Mike, our CFO, and Teresa Burchfield, our Head of Investor Relations.
Getting into the first quarter, once again, you see that we're really at Tupperware brands an and story. And by and, I mean, we're an established market and an emerging markets story as our portfolio of Tupperware and Beauty businesses both contribute to top and bottom line growth. And while we performed well in the first quarter, the emerging markets were, as they will continue dvc login to be, the driver of the quarter. Remember, emerging markets are 87% of the world's population. dvc login Our established markets were down modestly, but included a number of established markets with increases.
We dvc login are pleased with the results for the quarter, however, we also have a number of markets that need improvement. And frankly, being very candid as I've had one-on-one talks with many of you over the years, our experience suggests that this is likely to be the case always as we move forward, that with so many markets, there is likely to be disruption somewhere in the world at any given moment. I think what's most important is the results of the blended portfolio dvc login and being able to meet progress and not only sales but profits. And secondly, it's knowing what to do, management's obligation here and responsibility, when there is a problem market. Someone once said to me years ago, you don't drown when you fall on the water, you drown if you stay there. And I've been very pleased with their strength in management team getting better at solving problems sooner in markets.
Now a brief market review. Our top performers in the quarter included a number of emerging markets. I'll cover those first. In Europe, our Tupperware business in Turkey was up 41%, which was 10 points higher than last quarter's sales increase. Our Beauty business in South Africa, Avroy Shlain, was up 8% in the quarter. And in Asia, we continued to see stellar performance in our Indonesian business, our largest Tupperware market. We were up about 40%. I was there in -- not only in Jakarta but Borneo the week before last. And I'm also pleased to report dvc login we had a team from the NGO Global Fairness Initiative there on the ground with me and we have funded some important research to show the impact of having these 170,000 women in Indonesia in our business. And we'll report those results out to you just like we did in Mexico.
Still in Asia. Our businesses in India, Malaysia, Singapore and China were all up over 20%. And, by the way, India, China and Indonesia together account for almost 40% of the world's population, so expect more from them and more runway in the future. We are, in these markets, in a sweet spot as Tupperware brand is already recognized as a premium brand. When there's household formation, our categories are also near that sweet spot. And the expected growth of the middle class in these countries will provide a lot of white space. Again, the belief is they'll move from little more than 0.5 billion in middle class today to, in 7 years, 1.7 billion. By the way, that leads us to higher price point products dvc login and we're already seeing our ability to migrate some of our European, more unique dvc login products into the urban centers to middle dvc login class in Asia-Pacific.
Wrapping up our best-performing units -- emerging units. In South America, we saw continued double-digit growth. In Brazil, it was up 22%. Venezuela, too, was up 10%. While we had lowered growth rate than in past quarters, that really reflected the devaluation of the bolivar.
Now let me scan a number of our established markets of the world. In Europe, I'm pleased to say that Portugal, Belgium, Austria were all up double digit. You'll remember, we had some issues for a couple of quarters in Austria, but that's back on track again. Italy, I was there last week. It -- impressive moves there. We have made it back to flat in the quarter. It's a market, Italy, with a large population. Loves direct sales and we've never had a dynamic business there. I think we've put together the right management team and the right strategy. So more to come, but I think it's going to be good news in Italy. Interesting also, even our small Greek business was up mid-single dvc login digit in the quarter.
Was not so pleased with what happened in our big German business which, for Tupperware, this was our biggest in Europe. We've grown there consistently over the past 3 years quarter-by-quarter, but we had a t
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