Tupperware Brands Corporation reported sales for the first quarter ended March 28, 2020, were $375.9 million, down 23 percent versus last year.
“We continue to take swift actions to strengthen our business and navigate the uncertainties of COVID-19, including accelerating our planned cost savings from $50 million to $75 million in 2020,” said Miguel Fernandez, president and chief executive officer of Tupperware Brands. “Our top priorities are to protect the well-being of our employees and sales force, and to support our operations through the unprecedented challenges we face today. Prior to the disruption caused by the COVID-19 pandemic, the consolidated business was performing in-line with our expectations. This is a pivotal time for Tupperware.”
During the first quarter of 2020, the impact of COVID-19 on the Company’s business was most pronounced in Europe and Asia Pacific, where the company experienced partial or country-wide lockdowns of operations in various markets, including China, France, Italy and Philippines. The first quarter impact of COVID-19 largely affected March results, specifically in the second half of the month.
Regionally, results were:
- Europe; Sales of $105.7 million, down 24% and local currency sales down 19%; the comparison includes $15M of B2B sales in the prior year; otherwise, local currency sales would have been down 9%.
- Asia Pacific: sales of $120.4 million, down 23% and local currency sales down 20%.
- North America: sales of $101.3 million, down 15% and local currency sales down 11%.
- South America: sales of $48.5 million, down 34% and local currency sales down 19%.
The company said that while the duration and severity of this pandemic is uncertain, it expects that its results of operations in the second quarter of 2020 will reflect the most severe impact of the effects of COVID-19, and subsequent periods may also be negatively impacted.
“While it is not possible at this time to estimate the full impact COVID-19 could have on our business in 2020 and beyond, our leadership team continues to make material changes designed to improve our profitability and liquidity position to support our ongoing business in compliance with our debt covenants,” said Rich Goudis, executive vice chairman of Tupperware Brands. “Our initiatives to improve our liquidity position remain a near-term priority, and our capital allocation policy of debt repayment and investment in growth underscores our commitment to delivering value for our stakeholders over the long-term.”
To read the full Tupperware Brands Q1 2020 report, click here.
