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It fits badly for Tupperware... - Companies

It fits badly for Tupperware… – Companies

The famous brand is in great danger. Sales are collapsing, earnings are plunging and debts are piling up. Tupperware is approaching a debt ratio equivalent to bankruptcy.

It is very likely that in your kitchen you have a Tupperware product: a box for storing food, a spoon, a water bottle, etc. Since 1946 and its creation by Earl Tupper, the brand has established itself in homes around the world thanks to an unstoppable sales method: the famous Tupperware meetings. If these continue…

It is very likely that in your kitchen you have a Tupperware product: a box for storing food, a spoon, a water bottle, etc. Since 1946 and its creation by Earl Tupper, the brand has established itself in homes around the world thanks to an unstoppable sales method: the famous Tupperware meetings. If the latter continue today, they are no longer the only sales niche since own shops have flourished, some products also being available in department stores. For many years, the company has been on the downward slope. And if the pandemic and the forced return of people to their kitchens gave him a nice respite through increased demand for his products, things went back in the wrong direction in 2022. Since the beginning of the year, the figures have been catastrophic : drop in sales of 20%, to 990 million dollars, dizzying drop in profit of nearly 75% and increase in debt to 704 million dollars. These poor results stem, among other things, from a fall in revenues in Europe (from 90 to 60 million dollars in the 3rd quarter) given the inflationary context and the almost endless confinements in China where Tupperware meetings are rare. The company is thus dangerously approaching the debt ratio of 4.25 imposed by the banks: it was 4.17 in September and the forecasts for the end of the year are not encouraging. Tupperware is therefore negotiating with its banks to find a solution, honor its commitments and avoid bankruptcy. Since the announcement of the latest results last week, the stock market value has been in free fall. From 20 dollars in the spring, the action is worth less than 5 today.

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