Tupperware Brands Corporation (NYSE:TUP) Q4 2022 Earnings Call Transcript

Miguel Fernandez: So, obviously, we believe it’s going to get better and it’s going to be better from many points of view, but this is what I call sustainable growth from profitable growth. So the way it was designed before was that every time we grew, our variable cost grew just as much. So we couldn’t capitalize on the growth in terms of bottom-line. So we made a few changes on the compensation of the top leaders, which obviously has an impact on their under morale and their attitude. We believe we’re still compensating pay friendly and competitively compared to other companies and the other big change came from the little guys, so the guys that are just beginning. When we were in COVID, we implemented a visual kit, which was pretty much almost free to get into the business and immediately it would get 25% of discount, which is the maximum discount.

So basically, that is a friendly proposition for our consumer, but not a friendly proposition for a person who is starting a business because, obviously, everyone has access to that 25% discount, so I don’t have the space to make money. So that was the other change we made. We eliminated that virtual kit. Obviously, our recurring numbers are going to go down, but the recruits that we are going to have are business-oriented people, where they’re actually going to make money. And we believe that as the new people start making money, then eventually it’s going to benefit the top guys. They are going to have higher volume and they’re eventually going to go back to the absolute dollars that were making before. Obviously, the return on sales, and the profit on the margins in the U.S. look much better right now than they used to look six months ago.

We took a hit on sales, but now we have a solid foundation to build a profitable, sustainable business.

Linda Bolton Weiser : Okay. Thank you. That’s helpful. I guess, that’s all for me. Thank you very much.

Miguel Fernandez: Thank you, Linda.

Operator: There are no further questions at this time. I will now turn the call over to Miguel Fernandez for closing remarks.

Miguel Fernandez: Well, thank you very much for being with us this morning. Looking forward to seeing you in three months. We are going to continue to build this company to where it belongs and make the business as big as our brand. Thank you very much.

Operator: This concludes today’s call. You may now disconnect.