Tupperware Mexico had released an announcement about one of its preliminary financial results for the fiscal year 2019, says an article from Global Cosmetics News.

Additionally, the company revealed that it will accomplish Form 12b-25 or the Notification of Late Filing with the SEC. This move will give the company more time to finalize extra procedures for its investigation for Fuller Mexico. The investigations will revolve around the possible impact on the business's financial reports to the company.

2019 Sales Outcome Predictions

The sales of the company for 2019 is predicted to coincide with expectations. It is expected that the sales of the business will be from 12 to 14 percent. However, the impact of the results of Fuller Mexico for 2019 with adjustments and before tax considerations is expected to reach $19 million to $21million.

Fuller Mexico Issues

The Interim CEO of the company, Chris O'Leary, acknowledged the challenges that Brazil, China, the United States of America, and Canada had encountered in the fourth quarter. However, the CEO states that the Tupperware Mexico had its worst for its preliminary results due to some financial reporting problems with Fuller Mexico. O'Leary is working hard to resolve the issues with Fuller Mexico to finalize its 2020 financial reports. He also expressed the company's focus to improve its operations.

O'Leary was appointed as CEO of the company after his predecessor, Tricia Stitzel resigned from the position after the company had suspended its declaration of dividends to its shareholders.

The Effects to the Stock Price of Tupperware

On Tuesday, the stock price of Tupperware had reached its lowest. This was a result of the food container business's product line Fuller Mexico. The product line's financial reports are currently under investigation. It is seeking relief from its $650 million debt from creditors.

The 43% drop in the stock of Tupperware was one of its biggest decline in a day of trading.

The Main Focus of the Investigation for Fuller Mexico

The investigation will be focusing on the accounts payable and accrued liabilities portion of Fuller Mexico's books. The results of the investigation of Tupperware Mexico will help identify the impact of its liabilities and other results on the effectiveness of the internal controls implemented by the business.

The company is expecting an impact (before tax) of $50 million to $52 million from the impairments to be discovered from the investigation.

Tupperware's Struggles in the Competitive Market

For the year, Tupperware had struggled with the shrinking of its sales force. The perceived reason for this problem is the spread of the other 'gig' economic opportunities across the globe, stated an article from Market Watch.

Despite the 2.9 million sellers of the business, it had dropped from 3 million in its 2018 sales update.

Originally, the brand was introduced to the public in the United States in the 1950s. The primary target of the business were housewives. It was marketed to stay-at-home wives during special gatherings.

At the peak of the brand's popularity, the gathering allowed the business to create a huge network of their products' distributors. The brand had helped women from different parts of the world to acquire a new way of earning extra income.