Tupperware Brands Corporation (NYSE:TUP) Q4 2014 Earnings Conference Call - Final Transcript

Jan 28, 2015 • 08:30 am ET


Tupperware Brands Corporation (NYSE:TUP) Q4 2014 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the Tupperware Brands Corporation Fourth Quarter 2014 Earnings Conference Call. All right have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions)

Thank you. It is now my pleasure to turn the conference call over to Rick Goings, Chairman and CEO. Please go ahead, sir.

Rick Goings

And, thank you very much. Good morning, everyone. I'm just back in Orlando from World Economic Forum in Davos and also time in Indonesia and Malaysia. I'm here with Mike Poteshman, our CFO; and Lien Nguyen, our Head of IR.

On slide two, as usual, some of our -- the drill on this, the forward outlook, so I refer you to the company's position regarding forward-looking statements. And as a reminder to one format, we'll be referencing slide that will follow along with this call and that could be found on our webcast, on our website or after the call on our new IR application.

Turning to slide three, we are pleased to report that the quarter came in above our sales and our EPS guidance and in spite of numerous external challenges, our performance demonstrates, we believe that we have the business levers at our disposal and a talented management team that's largely mitigated a good deal of these externals. Our sales came in per 6 in local currency; 1 percentage point higher than the high end of our guidance and this was -- we are pleased a sequential improvement from our plus 4 in Q3 and it continues an improving trend from the second quarter.

Also, it was nice to see improvement in our value chain, all of this led to our EPS without items coming in at $1.72 and this also surpassed the high end of our guidance by $0.12. And this is, I might note, in spite of headwinds of $0.04 from foreign exchange. Michael get into more detail, unhaul this claim together when I turn it over to him. Also, it was good to see and report our emerging markets came in with sales plus 10% in the quarter and that was an improvement from Q3.

This included overcoming and might add a one point drag at the comparison from a 2013 lapping of a large business-to-business in Mexico and we don't do B2B's every quarter. We really do manage them and we do this, not so much as for sales, but for brand building and we can talk about that in Q&A if anybody wants to get into it.

Sales in our established markets were off 1%, however, this was a 3% improvement from the down 4% in the third quarter and it continued the improved trend from Q2. Our sales force at just under 3 million and worth 2.9 million was up 2% versus last year. The sequential decrease from 5% in Q3 was mostly from our markets were low per capita income, very low productivity