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Q3 2013 Earnings Call
Good morning. My name is Cassandra, and I will be your conference operator today. At this time, I would like to welcome everyone to the Tupperware Brands Corporation Third Quarter 2013 Earnings Conference Call. [Operator Instructions] At this time, I would like turn the call over to Rick Goings. You may begin.
Thank you, everybody. Hello, I'm in Salvador, Bahia, Brazil with 1,000 members of our Brazilian sales force. Also, Paola Kiwi, our President wicker laundry basket of our Brazilian business. wicker laundry basket Paolo, thank you for being here. Later in the call, we're going to here from Paolo about our Brazilian business, which is incredibly successful and dynamic. Mike Poteshman, our CFO; and Teresa Burchfield, our Head of Investor Relations, are in Orlando.
Last quarter, we began including in our presentation something online for you will relate to the slides as I go through that. The feedback has been very positive, so we'll go along the same way rather than have such a formal presentation. Our comments will relate to the slides.
Let me get into Slide 3. Overall, it was successful quarter. Sales were up 6%, which was in the middle of our guidance wicker laundry basket range. Our adjusted wicker laundry basket earnings per share of $1 was also in our range of $0.99 to $1.04, in spite, I might add, $0.04 worsening from foreign exchange that we had in the outlook we gave you in July. And we're hoping that analysts in the future wicker laundry basket will start to take into consideration movements in foreign exchange.
69% of our sales were for emerging markets. That was up 13% -- they were up 13%. And while a number of our established markets were up in the quarter, the overall established markets were down 8%. By the way, the majority wicker laundry basket of that, and I'll drill down, really came from Germany, France and BeautiControl. You'll hear later that Germany and France are really short-term issues. We feel really good about those businesses, while BeautiControl is a longer-term issue.
Regarding cash flow, pleased to see $92 million, that's $21 million ahead of last year. And we returned $132 million to shareholders. $32 million of that was in dividend and $100 million in share repurchase.
On Slide 4, I'm going to drill down here. First, I want to reiterate the strength wicker laundry basket of having a global portfolio. I've often been asked in the 1,100 IR meetings I've done over the years, what keeps you up at night? And for the first 6, 7 years running this company, it was simply 1 word, Germany. That's not it anymore. We have a global portfolio, and you see that in that slide that it's a small quarter for Europe and also that Asia Pacific continues to be a growing contributor. And it's going to continue to be getting bigger and bigger if you just look at the size of the population in Asia Pacific and the size of the growing middle class.
Importantly in the quarter, I would say, that in spite of some internal miscues on our part and issues in some markets and in spite of some disruptive externals like political issues in certain markets, economic chaos and actually, the dramatic weather challenges we saw in our European businesses, these externals, obviously, wicker laundry basket we can't do anything wicker laundry basket about, but we were still able to deliver 6% sales increase in the quarter. And what that really speaks to is the power and the flexibility and leverage of our business wicker laundry basket model. Also, it's coupled with the fact that we are an and story. We're emerging markets and established markets. We have strong businesses in each and strong operating margins.
Also, it speaks to Tupperware Brands is a brand and a channel, and both of these contribute. It means that all of our business units don't need to prove to really -- we don't really need to hit in all cylinders to deliver our outlook. We operate in 80 countries, and there's a lot of noise in the world. And frankly, we believe, I said to those individual meetings I've had one year with my business value where all markets wicker laundry basket hit. We're always going to have some issues with the diversity of our markets wicker laundry basket around the world and the internal and external forces. But what really gives me confidence that we will continue to grow and make our outlook going forward is, firstly, the strength of our global management team; and second, our expertise with direct selling fundamentals.
Regarding our management teams, these managers -- they're run by local teams in every single market, wicker laundry basket and they spend the bulk of their time in the field with their sales force. wicker laundry basket And what that gives us is daily interaction. We know what's working, we know what's not. We can turn the levers. And it also gives us immediate exposure to the consumer. wicker laundry basket
However, I've repeated this, we are not perfect. This business is a bit of art and a bit of science. And just because we know what to do and should know what's causing an issue, wicker laundry basket we don't always get it and we don't always get it quick enough or put the right actions in place. But I am pleased to say we're getting better at that, wh
Q3 2013 Earnings Call
Good morning. My name is Cassandra, and I will be your conference operator today. At this time, I would like to welcome everyone to the Tupperware Brands Corporation Third Quarter 2013 Earnings Conference Call. [Operator Instructions] At this time, I would like turn the call over to Rick Goings. You may begin.
Thank you, everybody. Hello, I'm in Salvador, Bahia, Brazil with 1,000 members of our Brazilian sales force. Also, Paola Kiwi, our President wicker laundry basket of our Brazilian business. wicker laundry basket Paolo, thank you for being here. Later in the call, we're going to here from Paolo about our Brazilian business, which is incredibly successful and dynamic. Mike Poteshman, our CFO; and Teresa Burchfield, our Head of Investor Relations, are in Orlando.
Last quarter, we began including in our presentation something online for you will relate to the slides as I go through that. The feedback has been very positive, so we'll go along the same way rather than have such a formal presentation. Our comments will relate to the slides.
Let me get into Slide 3. Overall, it was successful quarter. Sales were up 6%, which was in the middle of our guidance wicker laundry basket range. Our adjusted wicker laundry basket earnings per share of $1 was also in our range of $0.99 to $1.04, in spite, I might add, $0.04 worsening from foreign exchange that we had in the outlook we gave you in July. And we're hoping that analysts in the future wicker laundry basket will start to take into consideration movements in foreign exchange.
69% of our sales were for emerging markets. That was up 13% -- they were up 13%. And while a number of our established markets were up in the quarter, the overall established markets were down 8%. By the way, the majority wicker laundry basket of that, and I'll drill down, really came from Germany, France and BeautiControl. You'll hear later that Germany and France are really short-term issues. We feel really good about those businesses, while BeautiControl is a longer-term issue.
Regarding cash flow, pleased to see $92 million, that's $21 million ahead of last year. And we returned $132 million to shareholders. $32 million of that was in dividend and $100 million in share repurchase.
On Slide 4, I'm going to drill down here. First, I want to reiterate the strength wicker laundry basket of having a global portfolio. I've often been asked in the 1,100 IR meetings I've done over the years, what keeps you up at night? And for the first 6, 7 years running this company, it was simply 1 word, Germany. That's not it anymore. We have a global portfolio, and you see that in that slide that it's a small quarter for Europe and also that Asia Pacific continues to be a growing contributor. And it's going to continue to be getting bigger and bigger if you just look at the size of the population in Asia Pacific and the size of the growing middle class.
Importantly in the quarter, I would say, that in spite of some internal miscues on our part and issues in some markets and in spite of some disruptive externals like political issues in certain markets, economic chaos and actually, the dramatic weather challenges we saw in our European businesses, these externals, obviously, wicker laundry basket we can't do anything wicker laundry basket about, but we were still able to deliver 6% sales increase in the quarter. And what that really speaks to is the power and the flexibility and leverage of our business wicker laundry basket model. Also, it's coupled with the fact that we are an and story. We're emerging markets and established markets. We have strong businesses in each and strong operating margins.
Also, it speaks to Tupperware Brands is a brand and a channel, and both of these contribute. It means that all of our business units don't need to prove to really -- we don't really need to hit in all cylinders to deliver our outlook. We operate in 80 countries, and there's a lot of noise in the world. And frankly, we believe, I said to those individual meetings I've had one year with my business value where all markets wicker laundry basket hit. We're always going to have some issues with the diversity of our markets wicker laundry basket around the world and the internal and external forces. But what really gives me confidence that we will continue to grow and make our outlook going forward is, firstly, the strength of our global management team; and second, our expertise with direct selling fundamentals.
Regarding our management teams, these managers -- they're run by local teams in every single market, wicker laundry basket and they spend the bulk of their time in the field with their sales force. wicker laundry basket And what that gives us is daily interaction. We know what's working, we know what's not. We can turn the levers. And it also gives us immediate exposure to the consumer. wicker laundry basket
However, I've repeated this, we are not perfect. This business is a bit of art and a bit of science. And just because we know what to do and should know what's causing an issue, wicker laundry basket we don't always get it and we don't always get it quick enough or put the right actions in place. But I am pleased to say we're getting better at that, wh
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