- Tupperware Brands Corp TUP reported a third-quarter FY22 sales decline of 20% year-on-year to $302.80 million, missing the consensus of $336.80 million.
- The decrease was driven primarily by lower overall sales force activity, continuing lockdowns in China, lower consumer sentiment in Europe and adverse impact to unit volumes due to price elasticity.
- Sales in North America fell 16% Y/Y to $86.3 million, South America rose 1% to $70.3 million, Europe decreased 33% to $60.8 million, and Asia dropped 24% to $85.4 million.
- The gross profit fell 20.6% to $196.6 million, and the gross margin contracted by 90 basis points to 64.9%.
- The operating margin for the quarter was 5.2%, with an operating income of $15.8 million.
- The company held $111.6 million in cash and equivalents as of September 24, 2022.
- Adjusted EBITDA was $29.9 million versus $77.7 million last year.
- Adjusted EPS of $0.14 missed the analyst consensus of $0.46.
- CFO Mariela Matute said, "Given the revenue trends year to date, we expect to take additional restructuring actions in the fourth quarter, as well as implementing stringent inventory reduction programs."
- As part of the next chapter of the Turnaround Plan, the company promoted Hector Lezama to Chief Commercial Officer (CCO) to oversee its efforts to achieve sustainable growth and profitability.
- TUP also revealed substantial doubt about the ability to continue as a going concern due to the volatility in its earnings and progressive tightening of the financial covenants in the First Amendment to the Credit Agreement.
- Price Action: TUP shares are trading lower by 41.52% at $4.51 on the last check Wednesday.
- Photo Via Company
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in