Q1 2021 Tupperware Brands Corp Earnings Call
Good day and thank you for standing by welcome to the Tupperware Brands Corporation first quarter 2021 earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer south.
Moving to ask a question during the session you will need to press star one on your telephone. Please be advised that today's conference is being recorded if you require any further assistance. Please press star zero I would now like to hand, the conference over to your speaker today, Jean Girard, Vice President of Investor relation.
Please go head.
Thank you welcome to Tupperware brands first quarter 2021 earnings conference call.
With me on today's call are Miguel Fernandez, our president and CEO and Sandra Harris, our chief financial and operations Officer.
Earlier. This morning, we issued a press release announcing our financial results for the first quarter ended March 27 2021.
The press release is available on our company website on our Investor Relations page.
We will begin with our safe Harbor statement.
During the course of today's call. We will make forward looking statements that are subject to risks and uncertainties as described in our press release and in our SEC filings.
You should listen to today's call in the context of that information.
We will also discuss some of our results for the quarter on a non-GAAP basis.
Reconciliations between GAAP and non-GAAP measures can also be found in our press release.
Any reference to sales in the discussion today is referring to local currency sales, which compares results between periods as if current period foreign exchange rates had been the exchange rates in the prior period.
You can access the release and our forward looking statement language to the Investor Relations section of the company website.
You can also access a webcast replay of this call later today.
I will now turn the call over to Mcgill for his remarks.
Thank you James good morning, everyone.
Just 13 months ago, along with a new leadership team. We began the process of turnaround. This iconic company, we've committed to rightsize the cost structure to fix the core business increase their use of detailed tools on a strengthen the balance sheet and as you saw in the press release. This morning, both our top and bottom line performance.
Along with our liquidity and capital structure improved significantly from a year ago.
But more about the quarter on our performance in just a moment.
Let me first reiterate key elements of our strategic growth plan that are well underway.
We want to Pee book from a distributor push to consumer pool on distributor push model.
Update our brand architecture to allow us to segment branding products channels and pricing to appeal to a broader consumer base.
Expanding to new categories on push consumer permission of our iconic brands.
<unk> product development efforts to address needs of all consumer social sub segments.
On distribution and access points to meet consumers, where they shop.
And most importantly, it takes the core direct selling business with proven methods.
To date in our 75th year their brands is very strong widely known and accepted and we intend to leverage this important asset.
We also believe we are on trend with a worldwide focus on ESG by producing and selling environmentally friendly reusable products.
<unk> seen our increased efforts in this area with the sponsorship of National parks on our use of new more environmentally friendly materials.
Due to the strength on awareness of our brands, we made the strategic decisions to be a branded house not a house of brands.
As we develop our new brand architecture as such.
We expect to divest all the non tupperware business this year and used the proceeds to continue to pay down our debt and continue to invest in the business.
We can lead the execution of this new brand architecture will enable us to penetrate new channels of distribution new product categories on new pricing structures, all of which have the potential to accelerate our growth while minimizing any potential conflict with our current direct selling channel.
In the first quarter, we reorganized our leadership team around channels with Patricia Quest are leaning on our direct selling business.
After the summer now leads our non direct selling business, which includes key markets like China and Korea.
Along with all the important market on most importantly, our efforts to penetrate new channels of distribution.
Improving our ability is on expanding our capabilities and product innovation.
There will be a key objective for our executive team over the next two years. We believe they are highly nobody from manufacturers around the world that we can strategically partner with <unk> to accelerate our efforts to broaden our current product offerings.
Our brand into new categories on appeal to consumer indifference social subsegment.
Also we will leave it there is an exciting R&D journey here to use Nova materials to accelerate our efforts to continually improve the planet.
Yeah.
Our eco bloodline is an example of this this probe line is a revolutionary product portfolio made with sustainable materials.
We're adding two new products launched container on Sandridge keepers with a new material partner try to renew from isn't it.
Try to renew uniquely offers tupperware the ability to be signed clear transparent products with 50%, 35% recycled content without compromising on quality or clarity.
This perks with this new material will be launching in Europe in the second half of this year.
Our efforts to fix the core business are evident in our recent financial results in each of the past three quarters, we have reported 20 plus percent year over year growth.
Well, we are up against easy comps. This growth reflects increased activity higher engagement and rapid adoption of detailed tools and techniques by ourselves.
As we mentioned on our last earnings call I E.
This strategic shift for us in 2020 was that our sales force realize the geography was no longer a hindrance factor to growing their business by.
By utilizing social media platforms from detailed tools, they have been able to reach beyond their physical neighborhood on leverage expansive reach on their own Lang social network.
While it is still early in their transition to embracing detailed selling tools and methods. We're confident we can build upon the success gained in 2020 and accelerate widespread adoption in 2021.
We believe our more detailed equipped sales force will enable ongoing engagement and increased productivity as we move forward with.
Our other growth initiatives.
Our overall digital strategy is making great progress with expansion of sales force enablement tools, social commerce on web servers.
Our top 10 markets now have this important tools in order to create a more seamless interaction between consumers on our sales force and increase the options for consumers to access our products.
Speaking of more ways to access consumers.
Let me take a few minutes to discuss some new business opportunities.
Historically, we have done 30% to $35 million per year in business to business partners. In these partnerships, we sold products to well known retailers, who then use the product in their loyalty programs.
Tupperware products are then exchange four points based on consumer buying activity with a major retailer.
We believe there are opportunities to expand these partnerships currently were working with major brands in Mexico, Brazil, and Europe and are evaluating more opportunities for the remainder of the year to accelerate our growth in this channel.
Additionally, here in the U S. We will be testing new channels of distribution. This past weekend Tupperware run our future segment use of limited products with a major home shopping channel, who has access to more than 92 million homes across the U S through various media channels.
This new product on Brian exposure allow us.
To deepen engagement around our brands and provides potential lease for our sales force. Additionally, this is an opportunity to reach on expanded audience through the power of storytelling and discovery driven shopping experience.
Just a few months ago Tupperware became the first reversible.
Lastly, container rental partner with Taro cycled circle, a reduced platform loop.
<unk> worked with leading brands to create zero waste durable on returnable packaging.
As part of this agreement Tupperware has recently partnered with one of loops prominent brands partners.
Were currently designing a one of our guidance reusable package option for these brands and it will be available later this year.
Another example of our efforts to reduce the use of single use plastic is our partnership with the National Park Foundation.
This summer Taco will be releasing a limited edition specially designed national theme Park line of Sandridge keepers and on the go comps, which will be sold through a national Park service retail partner available at select parks around the country as well as through Tupperware direct selling on e-commerce channels.
Also our donation will help expand access to clean drinking water through new refueling stations.
Turning to first quarter results, let me highlight a few of our large markets before saundra discusses our overall financials.
In the U S and kind of a market sales increased 83% on sales force activity was up 92%.
It is important to note that this level of growth is not sustainable growth going forward at the first quarter of 2021 had the ECS year over year comparisons. Additionally, we're shifting to more profitable sales in this market and we will reduce some of the highly promotional programs on improved distribution costs as well.
Become more consumer centric in the U S and Canada, our customer profile is changing virtual selling leads to more people purchasing smaller units, reflecting our consumer pull strategy.
This change in order profile has increased our distribution cost on what.
We have set the higher cost in the near term, we're evaluating ways to embrace the shift into more efficient ways.
This is an important market to tupperware and we will be working intensely internally with our sales force to continue to increase our profitability in this market.
Tupperware, Mexico had on 18% sales growth in the first quarter on a 6% growth in average active sales force. This market also had an easier comparison in the first quarter of 2021 that needs to be consider going forward.
We're experiencing sales growth in Mexico, we're not meeting what we believe to be our potential in this market.
Our results were recently made a leadership change to make sure that we leverage the opportunity of our products', Brent and sales force going forward.
The new leader of this market work with me over the last 10 years and I am confident he will be able to work with the local sales force to increase sales and profitability.
In Brazil sales.
Sales increased 46% on an issue first quarter comparison on it.
<unk> achieved through an increase in sales force activity of 40%.
As you know the second wave of COVID-19 Cascade, Brazil, very hard while this second wave has not yet significantly impacted sales on our recruiting efforts have been effective. So we will remain cautious in this market until the train stabilizes on coverage rates on site.
And lastly, a key marketing our long term growth plan, China, which declined 14% effective students were down 7% versus last year.
Our new leader in China is focused on improving product innovation exploring bigger opportunities in e-commerce and fixing the core entrepreneur led retail business.
The turnaround in this market will take time, but we're confident on our brand has accepted on recognized by Chinese consumers.
Looking forward, our key priorities from 2021 to strengthen our direct selling business are.
The following.
Detail on product investment segmentation of our sales force introducing preferred customer loyalty programs around the world.
<unk> data to identify best practices use of data to upsell and cross sell to our preferred customers on them.
Sure competitive service on cost.
On our key priorities in the business expansion or to explore new channels of distribution avoiding a potential conflict with our current direct selling channel in tradition, Tupperware sub brands and penetrating into different product categories, where we know the consumers give us permission to enter.
We believe the execution of these priorities is creating competitively strong foundation that will create meaningful value for our shareholders for years to come.
Now, let me turn the call over to Sandra Harris, our CFO on fuel for a review of our financial statements.
Thanks Miguel.
Strong revenue momentum from the second half of 2020 carried over into the first quarter of 2021 reaffirming the firm financial Foundation, we are establishing as part of our turnaround plan.
Our first quarter sales or $460 million, which was an increase of 20% compared with last year in local currency and up 22% on a reported basis.
Three of our top four market U S and Canada.
Mexico, and Brazil contributed 74% of the dollar increase.
Additionally, reflecting the breadth of our efforts to fix our core business. The majority of our markets posted improved sales in the quarter as well.
On a regional basis, North America increased 43% South.
South America increased 53%.
Europe increased 12% and Asia was up 6%, excluding the negative impact from China's decline that you heard Mike I'll say.
These higher sales coupled with our turnaround plan cost savings.
To a gross margin of 73%.
480 basis points higher than a year ago.
The improvement 330 basis points was attributable to lower manufacturing costs.
Balance of the improvement reflects favorable changes in country and product mix.
Like other companies you may follow we are experiencing higher resin cost, but so far we've been able to offset this negative impact.
Through additional cost savings throughout our operations.
Moving on to SG&A.
We also experienced tremendous year over year improvement adjusted.
Adjusted SG&A as a percentage of sales was 53, 9% and reflected an 820 basis point improvement from last year.
Right sizing efforts contributed 560 basis points and 310 basis points improvement are from lower promotional costs.
These improvements were partially offset by 50 basis points of higher distribution costs.
Looking forward over the next few quarters to support our strategy to grow in new channels, we are accelerating investments in it infrastructure to increase our capabilities and enhance our cyber security data privacy and strengthen our controls.
We plan to also make incremental investments in the supply chain to improve the service levels required by consumers and these new channels.
We estimate this incremental investment to be in the range of $30 million to $35 million for the balance of 2021.
Additionally, through approximately $10 million of additional investments in our tax strategy.
We believe we have the ability and opportunity to more quickly achieve a tax rate in the low 30 for the full year of 2021.
We expect these 2021 additional investments will result in SG&A in the mid 50% range in the near term.
Longer term, we will continue to pursue SG&A at sub 50% of sales through an ongoing centralization efforts, creating centers of excellence to leverage our size.
Simplifying our compensation plans and through sales growth and our omni channel initiatives.
For the first quarter the improvements in gross margin and SG&A that I just discussed combined with our contribution margin on the 20% sales growth resulted in an adjusted operating income of $75 3 million or 16, 4% of sales.
Which reflect a significant improvement of 1290 basis points versus prior year.
We made a huge commitment towards cost savings in 2020, and it's gratifying to see it now reflected in our P&L.
Now, let me turn to our non-GAAP metric EBITDA.
As you see on the schedule contained in our press release for the quarter. It was $88 6 million, reflecting an improvement of $75 million from last year.
In addition to the higher operating income I, just mentioned Q1 EBITDA was favorably impacted by a one time gain on sale of assets of 9 million.
A 3 million benefit related to a grant from the China government normally received in the fourth quarter.
And a bad debt reversal in Germany of $2 million.
Adjusted for these items.
And the incremental investments that I just discussed future.
Future quarter, EBITDA will be slightly lower than the first quarter, but still above 2020.
The improvements in the operations.
Higher sales and higher margins.
Led to a GAAP diluted EPS in the first quarter of <unk> 85.
This is a dramatic turnaround from the loss of <unk> 16 cents in the first quarter of 2020.
And adjusted EPS of <unk> 82.
Also improved significantly compared to just nine last year.
The 73 of improvement in adjusted EPS included <unk> 69.
Turnaround plan savings profit associated with the growth in sales and less COVID-19 impact.
Seven cents related to the China Grant and the reversal of the bad debt reserves.
Offset by <unk> of acceleration of interests related to the debt repayment, which I'll discuss on a minute.
In the first quarter, our total balance.
Of debt was $695 million, reflecting a reduction of nearly $300 million from the 991 million in the first quarter of last year.
In addition to the proactive actions, we took in 2020 to reduce and restructure our debt.
In the first quarter, we used the proceeds of approximately $34 million from the sale of noncore assets to pay down our term loan debt.
The debt reduction together with strong improvement in EBITDA.
<unk> and a debt to adjusted EBITDA ratio for debt covenant purposes of 236 versus 536 last year.
And well below our required covenant of four.
The debt reduction also triggers a favorable 50 basis point reduction in our new term loan interest rate effective during the second quarter.
We expect the rate to decline from 975% to $9 two 5% on $240 million of term loan debt.
Achieving double digit growth for the third consecutive quarter.
Delivering profit continue to reflect our right sizing efforts.
And lowering our debt through the proceeds of noncore asset sales, resulting in a leverage ratio of 236 are continued evidence that our turnaround plan is working.
As we discussed today and as we look forward to the rest of the year. We are shifting our focus to support efforts contained in our growth strategy and therefore, we plan to make incremental investments that we believe will drive penetration and growth into new channels.
We are also committed to finalizing the divestiture of noncore asset sales to focus our resources on growing our branded house.
As a result, we believe these actions and our strategic plans will create a stronger more competitive company for the future.
I will now turn the call over for Q&A.
Ladies and gentlemen at this time, if you would like to ask a question simply press Star then the number one on your telephone keypad again, if you would like to ask a question. Please press Star then the number one on your telephone keypad, we'll pause for just a moment to comparable.
The Q&A roster.
Your first question comes from the line of Linda Bolton Weiser with D. A Davidson your line is open.
Yes, hi, good morning.
Can you Sandra Sandra just repeat them.
The statement you made about EBITDA guidance going forward I think you said that.
Excluding the additional investment the EBITDA would be lower but yet up year over year can you clarify that I just understood that correctly and then.
Can you just kind of comment on the cadence of the additional investment on what the EBITDA would kind of flow, including the additional investment. Thank you.
Yes, Hey, good morning.
So EBITDA in the quarter was $88 six and the debt.
Adjustments at that we would make against EBITDA would be the one time items that I discussed. So one was the $9 million gain on sell at the French manufacturing facility in average Lane. There was a 3 million timing difference on when we recognize the the China government granted typically comes in the fourth quarter. So that would lower forward looking EBITDA and then the bad debt reversal of the one time on.
$2 million and then to your point you know I discussed between 30, and 40 million of additional investments that we need to make and it roughly those are going to be a little heavier in Q2, but then more ratable throughout Q3 and Q4, we're accelerating some of the work around it.
Specifically to ensure that we're more prepared for the business expansion opportunities that we have with consumers so enhancing our it infrastructure around cyber security data privacy and all the things that are necessary as we approach more consumers and provide more access.
And can you clarify to saundra, if the 30 to 40 million of investment is is on top of the amount of cost cutting that you expect it to come back, which I think that was about 25% of the original cost savings. So this is like incremental debt to that that will come back.
<unk>.
Yeah, Yeah, yeah. So like I said, we had said that 25% or roughly 45 million those were largely either onetime COVID-19 actions like furloughs, but I would also say that the $45 million, even though we had some in Q1. It's also more backend loaded as we add back in more of the commercial programs incentive trips and and.
Commercial opportunity so for.
For the most part the $45 million is really hoping is generating and driving more of our turnaround plan cell, whereas the additional 30 to 40 million. We're talking about is getting the infrastructure prepared for those cells and so it is incremental to that $45 million.
Okay, and then as you think about kind of the long term on the turnaround and the longer that the management team has been there.
Thinking about further investment beyond 'twenty 'twenty. One are you kind of thinking that there will be some more like incremental type investment or do you think you can work in the required investment in terms of normal operations and kind of past 2021 thanks.
Yeah. So we did choose to use some of the profit that we achieved about based on the higher 20% growth to fund. These additional investments of 30 to 40. So we always are looking to balance that wonder what I would say is that as we look to really expand into more channels. We have a lot of work, but we need to do in our supply chain to be prepared for that and we're going from a.
<unk> model, where we had a different you know packing cadence of different shipping cadence to both a consumer model, which has smaller units per carton. But then also we have you know potentially partnerships that ship. They create so we're you know we're having to really look at our supply chain and choose to make investments the other pieces.
We continue to expand we need more product for those channels and you know as we innovate and have more product availability, we realize that most of that will be coming from a third party sourcing situation. So part of the investment that we're talking about this year is to start to build out a robust sourcing organization that really partners with suppliers.
On obtaining those products finding new innovations that are in the market and so we do feel like.
We potentially will augment that as we go forward, depending upon how ourselves respond to these new product categories.
Thanks, and then in terms of the strategic initiatives to get into other channels.
Let me go could you just talk about kind of will we see that as a as an effect on sales performance in terms of incremental sales in 2021 or is it more on 'twenty 'twenty, two where we would see the actual sales result of your actions.
Hi, Linda good morning, I think youre going to start seeing it.
A little in Q3, but mostly in Q4 on definitely next year.
Okay.
Okay.
And then Miguel at this stage of the game now that you've been at the company Oh, I guess about a year.
What are you seeing as kind of the biggest challenges to the turnaround is there anything that your thoughts have changed versus when you first came to the company in terms of strategy or ability to execute on any parts of your strategy.
So basically.
The short answer is no I mean, that's the same as charges in place, we're very confident in our ability to execute the big challenge that we have which we knew all along is that as you.
We are primarily our direct selling company on.
By expanding to other channels, we need to.
To build higher.
However, you want to call it these new skills.
To get into other channels on.
This is a skill set that many other companies come on that's how they they were founded on grew up we need to to build them on build them fast.
Obviously, we're going to start with a bigger markets, but at the same time I think our P&L is going to be able to sustain those.
Those investments because the whole P&L of these other channel. This is completely different from the one in direct selling.
Okay.
Yeah, and Linda Okay, and one more comment to that as well you know as Miguel said these other channels will support E.
Incremental margins and we also are continuing to improve our margins as we can through centralization and leveraging and so from that respect back to your question of will these additional investments. We funded we will continue to look for ways to optimize across the enterprise to keep our margins very healthy.
Okay, great. Thank you very much.
Your next question comes from the line of Steve O'hara with Sidoti Your line is open.
Hi, good morning, Thanks for taking the question.
Could you just.
I know you guys had made I think some leadership changes in China.
China or in Asia generally.
Can you just talk about it.
I mean, it sounds like you know trying to still.
You know not performing up to where you'd like it to be just wondering if you're starting to get traction with the new management team.
And maybe how that might take shape over the next.
You know few quarters to a year.
<unk> cetera.
Good morning, Steve just somebody out here so so obviously.
Kaine, who can join us in early February so he literally has been 90 days with us on a few of the key things that he has already been working on is.
You already changed the incentive plan for for the field. So we can meet.
<unk> the top sellers to continue on the top of business owners to continue to.
<unk>.
Two to build new new outlets in China, because there was a limitation to 10.
Each of these leaders. So now we increased the limitations on the successful people and could be even more successful.
Another another of our quick things that he has.
Including the market is that.
They seek a detailed practices.
Sure.
Merchandising category manager management store locations and so on and then finally comes from we saw very strong e-commerce background. So he's bringing his you know.
People that he worked with in the past.
Our only e-commerce experts and that's something that is a big big over 'twenty for us.
And we as I said in the script, it's going to take time, but.
But we're very confident.
That where we.
We're setting the right ingredients into the into the market and we have the right management.
Saundra mentioned, we're going to be investing in third party sourcing. So we're going to get a lot more product into China for the Chinese consumers. So we're very excited about that are our future in China.
Okay. Thank you.
And then maybe just.
Big picture.
You had a very strong.
2020.
The turnaround has started to take shape.
And you have I.
I think this is kind of the last quarter of.
On what was it fairly easy comp I guess.
Although the turnaround continues to.
Work can you just talk about you know.
Maybe you.
You know longer term, you know kind of where you see I think in the past you guys have talked about kind of a you know.
Sort of level of sales and earnings and I'm. Just wondering you know is that thinking still the case either in the near term or longer term and then.
What's that.
What are the long term goals around sale.
Sales profitability things like that.
Yeah, So Steve and we we continue to not provide guidance just because of the uncertainty stills are on COVID-19, as well as our turnaround plan. Yeah. We're doing a lot of interesting on new things I mean, it led to the decision to make these incremental investments and you know what.
We would reiterate is that we have a growth strategy and you know the growth strategy is not only around growing our direct selling business, which we've said we would grow.
In the competitive range of what other direct sellers are doing and so longer term. What we said is that's usually in the low single digits on our direct selling side, but as we add these business expansion opportunities. We know that those can grow much faster in the double digit range that helps us to continue to grow them together on both businesses.
And add more to our revenue. So you know it is a growth story on the profit side. You know we've proven that we were able to aggressively take out cost wherever moralizing that and that growth will help to fund. These investments that we're talking about in the future and that's why we've chosen to accelerate them and so all in all what we're looking at is a very.
<unk> balance strategy of growth on the top line with continued efforts.
Efforts around ensuring that we have very healthy profitability and you know this this quarter, we delivered the 20% return on sales on our operating margins and we will continue to look for ways to.
Return to investors on on both metrics as they look forward to the future.
Okay, and then just I know you've noted.
Our continued effort to shed.
Non core assets can you just remind me where the land sales processes and what the timing might be on that.
Yeah. So we do still have one more parcel here in Orlando and we still do we estimate the protein somewhere in the $40 million range. We're continuing to have conversations with the partner that we did the deal with last year. It's O'connor.
Recently, there was a press release that they actually have sold the the the loan that they had done for this piece of property, which hopefully gives them the ability to you know.
Oster on on executing on the second piece, but we also are on a in a non exclusive with them and so we are continuing to look at it you know any options available and we're committed to the sell off the non core assets.
Okay, Great alright, thank you very much.
Yeah.
Thanks, Steve.
Your next question comes from to line of Wendy Nicholson with Citibank. Your line is open.
Thanks, Good morning first.
First question I E.
Now some of the non tupperware branded <unk>.
Businesses do you think you can maintain any of those sales people and just ship them to selling tupperware instead of the brands that you're going to discontinue work or divest or are they really just kind of leave the system entirely and I'm just wondering on sort of impact on the P&L as we go through the course of the.
Year on into 'twenty 'twenty, two I know its revenues are a relatively small, but I'm wondering about the number of bodies.
Yes. So good morning, how are you so.
So basically once a day sales force member joins the brand.
They work with the brands and they represent the brand on theirs.
They are separate right. So for example, the people.
That we have in Tupperware, Mexico versus the people that we have in Fuller, Mexico they are completely different.
A different sets of people and they are loyal to their respective brands.
Once in a while we might do a cross brand promotion, but generally speaking you know they stay with their own brands.
I mean at least at the top levels at the bottom you know what the little level, let's just brand new people that I mean, as you know they represent many times 456 different brands, so but that wouldn't change by you know by changing the ownership.
Got it Okay fair enough and then second question on some of the sustainability stuff that you talked about and using the new.
Whatever ingredients or products you are.
Raw materials for the products on is there any impact notably on gross margin are those harder on more expensive to source or will you price up for those or is it neutral to pricing and margin.
Yeah.
Yeah. So when you would I would say as I mentioned earlier, the incremental investment to build out a third party sourcing organization today, the answer to that would be on where we're largely 60% manufacturing and so we've been opportunistic on on sourcing, but as we build out. This organization has started to form the partnerships with the right suppliers and start to leverage them. Then you. Our expectation is that we can you know.
Obviously maintain margin and maybe even improve some of our pricing through the third party sourcing.
Obviously, we'll continue to look for margin accretive products to add to our portfolio and as with all of our incremental investments. It's ROI driven right. So we will make the choices that continue to.
Gross profit itself.
Yes.
Okay. Let me just had a thought we're going to be developing sub brands on the let's say your free brand.
Speaks to the consumer around sustainability.
On the product cost is higher than we would price it up.
Because that's just the nature of that sub brand that we're gonna be offering to the consumers. So.
So we're going to be very disciplined.
Fair enough and then my last question just has to do with sort of the concept of <unk>.
Increasing consumer poll and it sounds like a lot of the investments you're making this year are kind of internally focused on the E side supply chain, which is awesome.
But in terms of sort of building the brand with consumers I'm wondering kind of what's your thinking on that what's your timing on that and is that going to be primarily digital and social media why not have a tupperware add in my people magazine or on the food network just to get more people familiar with Oh gosh.
Look at those new products didn't weren't really separate where he was doing that stuff. How do you. How do you think about that that is a component of the consumer poll strategy.
So when all things are going to come eventually the first thing is that we need to put on housing northern once we get the right product the right channel and we get everything.
Again, the housing nor there then we're going to be able to start investing in different media.
Lids on channels and start doing E b pilots on and see which one works better for us on whats our brands and so on so so it is in the horizon, we just need to finish up I guess getting us ready.
Whole strategy.
Fair enough sounds great. Thank you so much.
Thank you 120.
Thank you South concludes the question and answer session I hand, the call back over to Miguel Fernandez.
Thank you we believe we're well on our way to successful execution of our three Europe turnaround plan.
During 2021 with a right sizing the organization changes behind US, we're now able to shipped on time on resources to implement our growth strategies and become a more consumer centric company.
Thank you for your time today.
Thank you and that concludes tupperware brands score for.
[music].
The management team.
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