Tupperware continues to outpace market
Beauty product sales, which account for around 40 percent of Tupperware's turnover, rose 17 percent over the latest quarter helping to take the company's top-line to $583.6m.
The strong performance persuaded the direct sales company to increase its sales guidance for the full year by one percent to between 14 and16 percent.
Tupperware's high sales growth helped increase quarterly operating income 2.2 percent to $55.6m but higher oil prices did prevent profits from keeping up with turnover. It said rising resin prices put particular pressure on costs.
Importance of emerging markets
Breaking the figures down by region, emerging markets led the way. They accounted for 49 percent of total sales and grew 25 percent in the first six months of the year.
Asia Pacific sales across categories grew 23 percent in the second quarter to $85.6m. The region also made a major contribution to profits with segment profit increasing 48 percent to $17.2m.
Meanwhile North American beauty sales grew 10 percent to $134m but profit growth was stagnant leaving segment profit at $20.1m.
In addition to the impact of emerging markets, Tupperware benefited from the current weakness of the dollar. Second quarter sales grew 18 percent on a reported basis and 10 percent in local currency terms.
Adapting to the economic environment
Looking to the remainder of the year, the company remains confident that it will be able to stand up to any economic challenges.
"Even with a back drop of spotty economic conditions in some of our markets, we are optimistic entering the third quarter with a double-digit sales force size advantage," said CEO Rick Goings.
"Our geographic and product diversity coupled with our emerging market presence continues to act as a natural hedge to help mitigate challenges we see in isolated markets."Tupperware's beauty and personal care brands include Avroy Shlain, BeautiControl, Fuller, NuturCare, Nutrimetics, Nuvo and Swissgarde.
