Tupperware Brands
Annual Report 2010

Plain-text annual report

Rick Goings Chairman & Chief Executive Officer Dear Shareholders, 2010 was a successful year for Tupperware Brands, as we achieved many of our goals. Our 6% full year local currency sales increase was within our target and longer term guidance range. While the 2% decrease in our established markets was a bit softer than we would have liked, being up 15% in our emerging markets exceeded our expectations. So on balance, we continued to progress. Our profitability continued to improve, we generated strong cash flow and we raised our dividend by 20%. Recently, we announced a new dividend policy and accelerated share repurchase plan for 2011 and beyond, because we have confidence in the future and confidence in our ability to continue to grow sales and generate cash. We are a global portfolio, doing business in almost 100 countries, with a healthy mix of emerging and established market economies. We had great successes in many of our markets, including Tupperware Austria, Brazil, France, India, Indonesia, Malaysia/Singapore, South Africa and Turkey. Meanwhile, we had some disappointments as well, such as in Russia, Australia and our BeautiControl business. Natural disasters and economic upheavals disrupt our sales force growth and thus require rebuilding efforts, though we find that our geographic and product diversity help mitigate the effects of these factors and keep us growing. Because we are a global company, there will always be challenges that arise. But I believe, and we’ve seen, that our management teams have the skills to navigate through such obstacles and a business model that is highly adaptable. When we distill down our business model, there are four key elements which we have identified that are critical success drivers for every market’s success. In essence, they are our formula. Our continued growth is not due to luck; it’s because we understand how to execute this formula: • Developing innovative products with great design • Creating entertaining selling situations • Offering our sales force compelling earning and leadership development opportunities • Employing dynamic direct selling fundamentals But what really makes our formula work is our attitude that every successful business formula works, until it doesn’t. With that mindset, we have created a culture focused on the constant renewal of the way we execute our formula’s components. Essentially, we are a group of multi-local businesses. At our best, we are simply trying to create “repeater stations” around the world, adapting and adopting the formula to local needs. Tupperware Brands is fortunate in that we are able to increase the size of our business with very little investment in financial capital. Tupperware's growth comes from its worldwide sales force, and for over 50 years we have made an unwavering commitment to Enlighten, Educate and Empower Women and their families across the globe. We are therefore passionate about changing lives and instilling confidence in every one of our sales force members. We invest a substantial amount of effort and money each year to build and maintain momentum in these individuals. We support them with strong training programs and attractive career opportunities to help them achieve personal and professional success. All these expenditures are included in our routine operating costs and are not capitalized. We ended 2010 with a record level of 2.6 million in our diverse sales force, and this diversity gives us strength and power. We achieved many of our 2010 goals. Going forward, our priority is the sustainability of the enterprise, and that comes from a focus on revenue and profit generation supported by a solid financial structure. We are looking for good growth, from a focus on the key fundamentals that make our businesses thrive. This strategy enabled our 2010 success, and gives us confidence that we will be able to repeat this success year after year. BALANCE OF EMERGING AND ESTABLISHED MARKETS Established 44% of 2010 Sales Emerging 56% of 2010 Sales GREATER GEOGRAPHIC DIVERSITY 2000 Sales 2010 Sales US & Canada 21% Europe, Africa & Middle East 40% US & Canada 13% Europe, Africa & Middle East 35% Latin America* 16% Latin America* 27% Asia Pacific 23% *Includes Mexico and South America Asia Pacific 25% STRATEGIC BLUEPRINT FOR GROWTH R T S E N G T H E N SHARE 1. Innovative Products 2. Entertaining Selling Situations 3. Compelling Earning & Leadership Opportunities 4. Direct Selling Fundamentals R EFRESH E M E I M P L T N • Larger Sales Force • Stronger Productivity • More Customers 

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