Tupperware Third Quarter Sales Fall 20 Percent; Warns of Going-Concern Doubt

Tupperware Brands reported third-quarter 2022 net sales of 302.8 million dollars, down 20 percent from 376.9 million dollars a year earlier and down 14 percent in constant currency. The company posted a loss from continuing operations of 3.8 million dollars, or 0.09 dollars per diluted share, compared with income of 60.4 million dollars a year earlier. Adjusted EPS was 0.14 dollars versus 1.19 dollars.

Covenant adjusted EBITDA fell to 29.9 million dollars from 77.7 million dollars, leaving net leverage at 4.17 times against a 4.5 times limit. Tupperware said it is probable it will not remain in compliance with its credit agreement covenants over the next 12 months, which raises substantial doubt about its ability to continue as a going concern. The company said it is in discussions with its lenders.

Sales declined in Asia Pacific, North America and Europe, while South America grew. Chief executive Miguel Fernandez and chief financial officer Mariela Matute said additional restructuring actions and inventory reductions are planned in the fourth quarter.