Tupperware shares recover slightly a day after 50% swoon
The stock slumped as much as 50% on Monday as it flagged new doubts about its ability to continue
11 April 2023 - 20:33
byGranth Vanaik
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A selection of Tupperware products on display at a branch in Orlando, Florida, the US. Picture: RICHARD SHEINWALD/BLOOMBERG
Shares of Tupperware, the maker of reusable food storage containers, recouped some lost ground to climb nearly 7% on Tuesday, a day after losing half their value as it flagged doubts about its ability to continue as a going concern.
The Florida-based company said on Friday that it had engaged with financial advisers to help improve its capital structure and near-term liquidity, while was also reviewing its real-estate portfolio in a bid to preserve its liquidity.
Shares of the company slumped as much as 50% to a near three-year low of $1.21 on Monday, and ended the session down 48% with a market value of about $55m.
The stock was trading up at $1.32 on Tuesday, still shy from its 2021 high of $38.57, when the company benefited from a surge in demand as the lockdown-induced home cooking prompted consumers to use Tupperware containers to store their leftovers.
Still, Tupperware saw a decline in sales volumes since 2022 as consumers maintained a cautious stance with their discretionary spending.
Tupperware, known for its airtight, durable and colourful storage containers and bowls, had to hike prices to protect its margins from higher interest rates and elevated costs of resin and labour, as well as a stronger US dollar and lingering supply-chain challenges.
The company in November had raised doubts about its ability as a going concern, citing that it was doubtful about whether it could comply with some of its debt covenants.
Founded in 1946 by chemist Earl Tupper, the company became popular for the way it sold its products — through representatives doing door-to-door selling — much like cosmetics company Avon.
Tupperware now counts on nearly 3-million independent representatives around the world to distribute its products in about 70 countries.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Tupperware shares recover slightly a day after 50% swoon
The stock slumped as much as 50% on Monday as it flagged new doubts about its ability to continue
Shares of Tupperware, the maker of reusable food storage containers, recouped some lost ground to climb nearly 7% on Tuesday, a day after losing half their value as it flagged doubts about its ability to continue as a going concern.
The Florida-based company said on Friday that it had engaged with financial advisers to help improve its capital structure and near-term liquidity, while was also reviewing its real-estate portfolio in a bid to preserve its liquidity.
Shares of the company slumped as much as 50% to a near three-year low of $1.21 on Monday, and ended the session down 48% with a market value of about $55m.
The stock was trading up at $1.32 on Tuesday, still shy from its 2021 high of $38.57, when the company benefited from a surge in demand as the lockdown-induced home cooking prompted consumers to use Tupperware containers to store their leftovers.
Still, Tupperware saw a decline in sales volumes since 2022 as consumers maintained a cautious stance with their discretionary spending.
Tupperware, known for its airtight, durable and colourful storage containers and bowls, had to hike prices to protect its margins from higher interest rates and elevated costs of resin and labour, as well as a stronger US dollar and lingering supply-chain challenges.
The company in November had raised doubts about its ability as a going concern, citing that it was doubtful about whether it could comply with some of its debt covenants.
Founded in 1946 by chemist Earl Tupper, the company became popular for the way it sold its products — through representatives doing door-to-door selling — much like cosmetics company Avon.
Tupperware now counts on nearly 3-million independent representatives around the world to distribute its products in about 70 countries.
Reuters
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