Tupperware Brands Corporation (NYSE:TUP) Q1 2015 Earnings Conference Call - Final Transcript

Apr 22, 2016 • 08:30 am ET

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Tupperware Brands Corporation (NYSE:TUP) Q1 2015 Earnings Conference Call - Final Transcript

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Operator
Operator

Good morning. My name is Kayla and I will be your conference operator today. At this time, I would like to welcome everyone to the Tupperware Brands Corporation First Quarter 2015 Earnings Conference Call.

[Operator Instructions]

I will now hand today's call over to Mr. Rick Goings. Please go ahead, sir.

Executive
Rick Goings

Thank you very much. Good morning, everyone. I'm in Orlando with Nick Poucher, our Controller, and Lien Nguyen, our Head of Investor Relations. Mike Poteshman, our CFO, is on the phone from Bratislava, Slovakia where he is meeting with our global finance people. And if there's any disruption, Michael, as we've said in the past, Nick will come on and take over on that end.

As usual, everyone, you know the drill on forward outlook on slide two, so I refer you to our Company's position. As a reminder, we're using slides that will follow along with this call and they can be found on the webcast or after the call on our site.

Turning to slide number three, overall we are modestly pleased with the quarter. While a goodly number of countries were up, there were some disappointments, as well and I will talk about both.

We ended the quarter in the middle of our guidance range and above the high end of our EPS range, without the additional $0.04 negative impact of FX on EPS guidance from January. You all know this. We can't do much about FX, so we do what we can and we navigate around the rest. Worth noting is that in spite of the increases, we had tough comparisons from last year's 7% growth, which included a much bigger contribution from Venezuela, from not only sales but it was at a much much higher exchange rate. That's why we say inside what's the rate in Venezuela.

You have got to check it daily. Even with the challenging comps, though, the sales growth we achieved, it does demonstrate the strength of our business model and our diversified global portfolio, and how we can balance the puts and calls and at the same time make progress.

Let me turn to emerging markets. Sales were up 8% in the quarter. Worth noting, we had strong performance from Argentina, Brazil, China, both our South African businesses.

On the other side of that, I've got to mention too we were disappointed with. Indonesia down in the quarter. And I'll dig into that further in just a few moments. Sales in our overall established markets were down 6%, with our largest drag in a few of our European units, which I'll talk about. However, that offset a really terrific performance in quite a number of other established markets.

Globally, regarding salesforce size, we're just shy of 3 million -- 2.9 million -- up 2% versus last year and while our advantage was about the same as we closed last quarter, we really know we have to build on this advantage. We've just had a meeting with what we call our