Tupperware Brands Corporation (NYSE: TUP) shares jumped more than 30% after the Company announced third quarter earnings and a return to growth. Third quarter 2020 sales were $477.2 million, up 14% and local currency sales were up 21%. Average active sales force was up 10% and sales per active sales force was up 10% reflecting strong engagement by the sales force utilizing digital tools and techniques to bring Tupperware’s reusable products to market during unprecedented times.
“The 21 percent growth in local currency revenue reported today reflects a rapid adoption of digital tools by our sales force to combat the social restrictions surrounding COVID-19, and the increased consumer demand for our innovative and environmentally friendly products, as more consumers cook at home and are concerned with food safety and storage,” said Miguel Fernandez , President and Chief Executive Officer of Tupperware Brands. “The improved performance of both top and bottom line these past two quarters are a positive sign that our Turnaround Plan is working”.
Net income improved 341% to $34.4 million or $0.65 diluted earnings per share compared with net income of $7.8 million and $0.16 diluted earnings per share last year primarily due to increased profit from sales growth and realization of the Turnaround Plan cost savings.
Sandra Harris , Tupperware Brands Chief Financial Officer and Chief Operating Officer said, “We are pleased with the rate of improvement in right sizing the business, improving our liquidity and making permanent structural changes that will ensure the success of our Turnaround Plan.” Harris continued, ” These efforts, including sales of non-core assets, will help us continue to improve the health of our balance sheet as we pursue the refinancing of our June 2021 obligations.”