Seeking Alpha:
A direct seller of various consumer products, Tupperware Brands (TUP) is best known for its popular kitchen storage containers. Roughly 80% of revenues are generated outside the U.S. Sales are split fairly evenly between established markets and faster growing emerging markets such as Mexico, South America, China, India, Indonesia, Russia, and Eastern Europe.
The company’s products fall into two categories. Tupperware branded products, which generated 65.2% of 2008 sales, consist of food storage containers and serving and food preparation products. Product lines include Modular Mates, FridgeSmart, and One Touch canisters; Flat Out containers that flatten for easy storage; Rock ‘N Serve microwave containers; Open House and Elegant serving products; and the Chef Series of stainless steel knives and cookware. Beauty products accounted for 34.8% of 2008 sales. These consist of cosmetics; skin, bath and body care products; toiletries; fragrances; nutritional products; and apparel marketed under the Armand Dupree,Avroy Shlain, BeautiControl, Fuller, NaturCare, Nuvo, and Swissgarde brand names.
The company relies on an independent direct sales force that numbers 2.3 million worldwide. The sales force uses what is known as the “party†plan. They generate sales by hosting social events or parties where they demonstrate TUP’s products.
Despite recessionary pressures, net sales rose 9.1% in 2008 to $2.16 billion. Sales in emerging markets climbed 17%. Sales in established markets fell 1%. Tupperware brand sales increased 10.9% to $1.41 billion. Beauty segment sales grew 5.9% to $752.8 million. The adjusted operating profit margin expanded 54 basis points to 11.28%. Adjusted net income jumped 20.2% to $169.7 million or $2.69 per share.
Logo from Tupperware