Tupperware Preliminary Fourth Quarter Sales Fall 20 Percent; Flags Tax Restatement and Material Weakness

ORLANDO, Fla., March 1, 2023 -- Tupperware Brands Corporation reported preliminary fourth-quarter 2022 net sales of 313.7 million dollars, down 20 percent year over year, or 14 percent in constant currency. Loss from continuing operations was 35.2 million dollars, or 0.79 dollars per diluted share. Full-year net sales were 1,305.6 million dollars, down 18 percent, or 14 percent in constant currency, with a continuing-operations loss of 28.4 million dollars.

On February 22, 2023, the company entered a third amendment to its credit agreement providing additional leverage and interest-coverage covenant relief after earlier amendments in August and December 2022. Consolidated net leverage was 4.88 times at year-end. Management said 2023 is expected to be a transition year as it stabilizes the business.

The company said preliminary results are subject to change while it finalizes income-tax items, that it identified prior-period misstatements mainly related to income taxes, and that it will disclose a material weakness in internal control over financial reporting in its 2022 Form 10-K. Chief executive Miguel Fernandez cited retail expansion progress in the United States alongside pressure on the core direct-selling business.