Tupperware Second Quarter Sales Rise 17 Percent to 464.7 Million

Tupperware Brands reported second-quarter net sales of 464.7 million dollars for the period ended June 26, 2021, up 17 percent, or 10 percent in local currency. GAAP diluted earnings were 0.67 dollars a share, compared with 1.30 dollars a year earlier, when results included large one-time items. Adjusted diluted earnings rose to 0.95 dollars from 0.84 dollars. Adjusted EBITDA rose 17 percent to 95.3 million dollars. Net income was 35.6 million dollars, down from 63.8 million dollars, mainly because the prior year included gains on debt extinguishment and a property sale.

President and chief executive Miguel Fernandez said the growth reflected investment in the direct-selling core and preparation for new channels. Chief financial officer and chief operating officer Sandra Harris said the debt-to-EBITDA ratio improved to 2.05 from 4.91. Average active sales force rose 24 percent to 579,623, while productivity fell 11 percent. Europe, North America, and South America grew. Asia Pacific sales fell 7 percent.

The company also said it would amend its 2020 annual report the next day. Management concluded no restatement was required, but a footnote would disclose a 4.5 million dollar understatement of 2020 net income tied to out-of-period corrections. The amendment was also set to expand a previously disclosed material weakness and to disclose an ongoing Securities and Exchange Commission inquiry into accounting practices related to Mexico operations.