Tupperware 1Q15 Earnings Call Notes

Lower growth rate today means more than higher growth rate off of lower base in China

“I occasionally get a question about the slowing economy in China that we read about and other places of the world but to put it in perspective, remember when China’s GDP was growing double digit from 2005 to 2011, they were starting with a much much lower base, so 6% GDP growth in China today which is now the largest economy in the world is worth much more than 13% growth was in 2005. Any rate behind all that were confidence in the growth in this unit and as we mentioned during our analyst day in New York, we see China as a huge opportunity for growth and we’re going to get it by opening new areas and introducing more initiatives to build this brand loyalist preferred customers. ”

Marketing message is flattening as global consumer tastes converge

“so many people believe, well the world is all different. There are more similarities if you get to urban young millennials, you take a urban young millennial woman of 30 years old in Beijing, she is more similar to the same woman in Boston than you would ever would’ve thought in the past. 75% of our product line is uniform all across the world, the same kind of promotions work generally all over the world. And so I think we’ve really opened up the business and I feel good about the plans I see and the execution of those plans”

Export economies of Europe are benefitting from the weak Euro

“this new young Prime Minister of Italy made comments that Angela Merkel didn’t like but he said he’s not sad about the euro’s decline, I think is what 107 this morning Nick and the low oil prices because what’s going to happen, he said, we’re an export economy. This is going to get our factories working again. It’s going to increase our people’s income because we’re going to start exporting these goods that we make, not only automobiles textiles etc. and over time it’s going to be a better consumer environment. I happen to think he’s right at that and how we try to manage the businesses by local markets over time. ”

Don’t build the factory, but have control of it

“we’re about triple the size of a company that when I joined and we have 15 manufacturing units and one of the things we learned best practices we learned from companies like Nike, how they do it. Now 40%, 45% of our products are manufactured outside and we learned to make it a Tupperware factory, we didn’t have to make the capital investment in that and we could still have the attractive gross margins. I’ve often used the example that when Nike went into the golf ball business they didn’t build a factory, they went to – they had the biggest research in rubber and actually in golf balls in the world, at the same time Callaway built a factory. This has enabled us to have more cash flow and that’s what we’re really working for, how do we keep looking at our business model new and differently so that we can return more to shareholders. “