Machine learning predictions based on historical earnings data and price patterns
1-Day Prediction
+1.16%
$38.36
99% positive prob.
5-Day Prediction
+1.96%
$38.66
99% positive prob.
20-Day Prediction
+4.79%
$39.74
94% positive prob.
SEC 8-K filings with transcript text
Jul 23, 2026 · 99% conf.
1D
+1.16%
$38.36
Act: -1.05%
5D
+1.96%
$38.66
Act: +3.88%
20D
+4.79%
$39.74
Transcript text not available. View on SEC.gov →
Apr 23, 2026
Feb 12, 2026
Oct 23, 2025
Jul 24, 2025
0000098677false00000986772025-07-232025-07-23
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: July 23, 2025
(Date of earliest event reported)
(Exact name of registrant as specified in its charter)
Virginia (State or other jurisdiction of incorporation)
001-01361 (Commission File Number)
22-1318955 (IRS Employer Identification No.)
7401 South Cicero Avenue Chicago, IL 60629 (Address of principal executive offices)
Registrant’s telephone number including area code: (773) 838-3400
Not Applicable (Former name or former address if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13 e-4(c) under the Exchange Act (17 CFR 240.13 e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
Title of each class:
Trading Symbol
Name of each exchange on which registered:
Common Stock, par value $0.694 per share
TR
New York Stock Exchange
Item 2.02. Results of Operations and Financial Condition.
On July 23, 2025, Tootsie Roll Industries, Inc. issued a press release (the "release") announcing its results of operations and financial condition for the second quarter ended June 30, 2025. A copy of the release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
The information in the release and in this Item 2.02 is "furnished" and not "filed" for purposes of Section 18 of the Securities and Exchange Act of 1934, or otherwise subject to the liabilities of that section. Such information may only be incorporated by reference in another filing under the Securities Exchange Act of 1934 or the Securities Act of 1933 only if and to the extent such subsequent filing specifically references such information.
Item 9.01. Financial Statements and Exhibits.
(c) The following exhibit is furnished with this report:
Exhibit 99.1
Press Release of Tootsie Roll Industries, Inc., dated July 23, 2025.
Exhibit 104
Cover Page Interactive Data File (formatted as inline XBRL).
2
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the under-signed thereunto duly authorized.
July 24, 2025
By:
G. Howard Ember, Jr.
Vice President Finance and Chief Financial Officer
3
Apr 24, 2025
2 tr-20250423xex99d1.htm
Exhibit 99.1
7401 South Cicero Avenue
Chicago, IL 60629
Phone 773/838-3400
Fax 773/838-3534
Wednesday, April 23, 2025
CHICAGO, ILLINOIS – April 23, 2025 - Ellen R. Gordon, Chairman, Tootsie Roll Industries, Inc. reported first quarter 2025 net sales and net earnings.
First quarter 2025 net sales were $146,521,000 compared to $151,464,000 in first quarter 2024, a decrease of $4,943,000 or 3%. First quarter 2025 net earnings were $18,058,000 compared to $15,834,000 in first quarter 2024, and net earnings per share were $0.25 and $0.22 in first quarter 2025 and 2024, respectively, an increase of $0.03 per share or 14%.
Mrs. Gordon said, “We continued to face a challenging market in first quarter 2025 as customers and consumers have become more resistant to higher prices. These headwinds have had some adverse effect on sales in first quarter 2025.
Many companies in the consumer products industry have increased selling prices in order to improve price realization in response to increasing input costs in recent years. We have implemented price increases as well during this period in order to recover our margin declines. Although we made progress in restoring our margins in first quarter 2025, cocoa and chocolate markets continue at significantly elevated levels compared to historical prices in past years. As a result, we expect to incur even higher cocoa and chocolate costs during the balance of 2025 and into 2026 as many of our older supply contracts expire and new contracts at higher costs become effective. Although the Company continues to monitor its input costs, we are mindful of the effects and limits when passing on the above-discussed higher input costs to our customers as well as the final consumers of our products.
First quarter 2025 gross profit margins benefited from higher price realization, improvements in plant manufacturing operating efficiencies, and certain cost reductions. The Company uses the Last-In-First-Out (LIFO) method of accounting for inventory and costs of goods sold which generally results in lower current net earnings during such periods of increasing costs and higher inflation. As a result, the above discussed higher cocoa and chocolate costs will have an increasingly adverse effects on our gross profit margins as this year progresses.
First quarter 2025 net earnings benefited from increased investment income from the Company’s investments in marketable securities and an insurance recovery. The Company’s effective income tax rates were 21.6% and 21.4% in first quarter 2025 and 2024, respectively. Earnings per share did benefit from stock purchases in the open market over the preceding twelve months resulting in fewer shares outstanding in first quarter 2025 compared to the corresponding periods in 2024.
Our operations and sales are principally in North America, and our cross border transactions with Canada and Mexico qualify under the USMCA free-trade agreement. Certain ingredients, including cocoa, chocolate and edible oils, as well as some packaging and other purchases, do have foreign origins outside of USMCA. Until such time that more clarity regarding tariffs, as well as possible retaliatory tariffs, is forthcoming, we are not able to ascertain the effects of tariffs on our business.
We are focused on the longer term and therefore are continuing to make investments in plant manufacturing operations to meet new customer and consumer product demands, achieve product quality improvements, expand capacity in certain product lines, and increase operational efficiencies in order to provide genuine value to consumers.”
This release contains forward-looking statements that are based largely on the Company’s current expectations and are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as “anticipated,” “believe,” “expect,” “intend,” “estimate,” “project,” “plan” and other words of similar meaning in connection with a discussion of future operating or financial performance and are subject to certain factors, risks, trends and uncertainties that could cause actual results and achievements to differ materially from those expressed in the forward-looking statements. Such factors, risks, trends and uncertainties, which in some instances are beyond the Company’s control, include the effects of U.S. tariffs as well as retaliatory tariffs and other import fees and surcharges by other countries, the overall competitive environment in the Company’s industry, the ability to recover increases in input costs and tariffs through price increases, successful distribution and sell-through during Halloween
Feb 13, 2025
2 tr-20250212xex99d1.htm
Exhibit 99.1
7401 South Cicero Avenue
Chicago, IL 60629
Phone 773/838-3400
Fax 773/838-3534
Wednesday, February 12, 2025
CHICAGO, ILLINOIS – February 12, 2025 - Ellen R. Gordon, Chairman, Tootsie Roll Industries, Inc. reported fourth quarter and twelve months 2024 net sales and net earnings.
Fourth quarter 2024 net sales were $191,356,000 compared to $195,368,000 in fourth quarter 2023, a decrease of $4,012,000 or 2%. Fourth quarter 2024 net earnings were $22,509,000 compared to $29,403,000 in fourth quarter 2023, and net earnings per share were $0.32 and $0.41 in fourth quarter 2024 and 2023, respectively, a decrease of $0.09 per share or 22%.
Twelve months 2024 net sales were $715,530,000 compared to $763,252,000 in twelve months 2023, a decrease of $47,722,000 or 6%. Twelve months 2024 net earnings were $86,827,000 compared to $91,912,000 in twelve months 2023, and net earnings per share were $1.22 and $1.28 in twelve months 2024 and 2023, respectively, a decrease of $0.06 per share or 5%.
During fourth quarter 2024, the Company’s Board of Directors revoked its prior action that preserved the full income tax deductibility of nonqualified deferred compensation in light of changes made by the Tax Cuts and Jobs Act of 2017. The Board revoked its authorization after determining that it was no longer feasible, after considering the purpose of these plans, to secure tax deductions on all accrued deferred compensation. As a result, the Company wrote off $11,010,000 of deferred tax assets in fourth quarter 2024. This nonrecurring non-cash charge resulted in a like increase in income tax expense and a decrease in net earnings in fourth quarter and twelve months 2024. Adjusting for the aforementioned, net earnings in fourth quarter 2024 would have been $33,519,000 compared to $29,403,000 in fourth quarter 2023, an increase of $4,116,000 or 14%, and net earnings in twelve months 2024 would have been $97,837,000 compared to $91,912,000 in 2023, an increase of $5,925,000 or 6%.
Mrs. Gordon said, “Throughout 2024 we faced a challenging market as customers and consumers became more resistant to higher price realization. These headwinds have had some adverse effect on sales in fourth quarter and twelve months 2024.
Fourth quarter and twelve months 2024 gross profit margins benefited from higher price realization and improvements in plant manufacturing operating efficiencies. However, lower sales volumes adversely affected our results in fourth quarter and twelve months 2024 because much of our plant overhead costs, and certain other costs and operating expenses, do not decrease with lower sales. The Company uses the Last-In-First-Out (LIFO) method of accounting for inventory and costs of goods sold which generally results in lower current net earnings during such periods of increasing costs and higher inflation. During fourth quarter 2024, the Company reduced inventories which resulted in a LIFO liquidation. The liquidated inventory was carried at lower costs prevailing in prior years as compared with current costs in 2024, and therefore benefited fourth quarter and twelve months 2024 operating earnings and net earnings.
In response to increases in input costs in recent years, many companies in the consumer products industry have increased selling prices. We have implemented price increases as well during this period with the objective of improving sales price realization in order to recover our margin declines. Although we made progress in restoring our margins in 2024, cocoa and chocolate costs have moved significantly higher in the markets this year, and we will experience even higher cocoa and chocolate costs in 2025 as many of our older supply contracts expired and new contracts at higher costs become effective. Although the Company continues to monitor its input costs, we are mindful of the effects and limits when passing on the above-discussed higher input costs to our customers as well as the final consumers of our products.
Fourth quarter and twelve months 2024 net earnings benefited from increased investment income from the Company’s investments in marketable securities, higher leasing revenue from the leasing of certain real estate to third parties, and more favorable foreign exchange. Excluding the effects of the write-off of deferred tax assets as discussed above, the Company’s effective income tax rates were 23.8% and 21.8% in fourth quarter 2024 and 2023, respectively, and 22.9% and 23.4% in twelve months 2024 and 2023, respectively. Earnings per share did benefit from stock purchases in the open market over the preceding twelve months resulting in fewer shares outstanding in fourth quarter and twelve months 2024 compared to the corresponding periods in 2023.
We are focused on
Oct 24, 2024
2 tr-20241023xex99d1.htm
Exhibit 99.1
7401 South Cicero Avenue
Chicago, IL 60629
Phone 773/838-3400
Fax 773/838-3534
Wednesday, October 23, 2024
CHICAGO, ILLINOIS – October 23, 2024 - Ellen R. Gordon, Chairman, Tootsie Roll Industries, Inc. reported third quarter and nine months 2024 net sales and net earnings.
Third quarter 2024 net sales were $223,891,000 compared to $248,336,000 in third quarter 2023, a decrease of $24,445,000 or 10%. Third quarter 2024 net earnings were $32,844,000 compared to $34,382,000 in third quarter 2023, and net earnings per share were $0.46 and $0.48 in third quarter 2024 and 2023, respectively, a decrease of $0.02 per share or 4%.
Nine months 2024 net sales were $524,174,000 compared to $567,884,000 in nine months 2023, a decrease of $43,710,000 or 8%. Nine months 2024 net earnings were $64,318,000 compared to $62,509,000 in nine months 2023, and net earnings per share were $0.90 and $0.87 in nine months 2024 and 2023, respectively, an increase of $0.03 per share or 3%.
Mrs. Gordon said, “We continue to face a challenging market in third quarter and nine months 2024 as customers and consumers became more resistant to higher price realization. Third quarter and nine months 2024 sales were adversely affected by the timing of sales between third and fourth quarter 2024 when compared to the prior year comparative periods.
Third quarter and nine months 2024 gross profit margins benefited from higher price realization and improvements in plant manufacturing operating efficiencies. However, lower sales volumes adversely affected our results in third quarter and nine months 2024 because much of our plant overhead costs, and certain other costs and operating expenses, do not decrease with lower sales.
In response to increases in input costs in recent years, many companies in the consumer products industry have increased selling prices. We have implemented price increases as well during this period with the objective of improving sales price realization in order to recover our margin declines. We made progress in restoring our margins in 2023 and continue to do so in 2024. Cocoa and chocolate costs have moved significantly higher in the markets this year, and we expect these increases to continue to have some adverse effects on our input costs and margins in fourth quarter 2024 and 2025. Although the Company continues to monitor its input costs, we are mindful of the effects and limits when passing on the above-discussed higher input costs to our customers as well as the final consumers of our products.
Third quarter and nine months 2024 net earnings benefited from increased investment income from the Company’s investments in marketable securities, higher leasing revenue from the leasing of certain real estate to third parties, and more favorable foreign exchange. The Company’s effective income tax rates were 22.6% and 23.9% in third quarter 2024 and 2023, respectively, and 22.4% and 24.1% in nine months 2024 and 2023,
respectively. Earnings per share did benefit from stock purchases in the open market over the preceding twelve months resulting in fewer shares outstanding in third quarter and nine months 2024 compared to the corresponding periods in 2023.
We are focused on the longer term and therefore are continuing to make investments in plant manufacturing operations to meet new consumer and customer product demands, achieve product quality improvements, expand capacity in certain product lines, and increase operational efficiencies in order to provide genuine value to consumers.”
This release contains forward-looking statements that are based largely on the Company’s current expectations and are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as “anticipated,” “believe,” “expect,” “intend,” “estimate,” “project,” “plan” and other words of similar meaning in connection with a discussion of future operating or financial performance and are subject to certain factors, risks, trends and uncertainties that could cause actual results and achievements to differ materially from those expressed in the forward-looking statements. Such factors, risks, trends and uncertainties, which in some instances are beyond the Company’s control, include the overall competitive environment in the Company’s industry, the ability to recover increases in input costs through price increases, successful distribution and sell-through during Halloween and other seasons, and changes in assumptions, judgments and risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2023.
The risk factors referred to above
Jul 25, 2024
2 tr-20240724xex99d1.htm
Exhibit 99.1
7401 South Cicero Avenue
Chicago, IL 60629
Phone 773/838-3400
Fax 773/838-3534
Wednesday, July 24, 2024
CHICAGO, ILLINOIS – July 24, 2024 - Ellen R. Gordon, Chairman, Tootsie Roll Industries, Inc. reported second quarter and first half 2024 net sales and net earnings.
Second quarter 2024 net sales were $148,819,000 compared to $158,837,000 in second quarter 2023, a decrease of $10,018,000 or 6%. Second quarter 2024 net earnings were $15,640,000 compared to $14,726,000 in second quarter 2023, and net earnings per share were $0.22 and $0.20 in second quarter 2024 and 2023, respectively, an increase of $0.02 per share or 10%.
First half 2024 net sales were $300,283,000 compared to $319,548,000 in first half 2023, a decrease of $19,265,000 or 6%. First half 2024 net earnings were $31,474,000 compared to $28,127,000 in first half 2023, and net earnings per share were $0.44 and $0.39 in first half 2024 and 2023, respectively, an increase of $0.05 per share or 13%.
Mrs. Gordon said, “We continued to face a more challenging market in second quarter and first half 2024 as customers and consumers became more resistant to higher price realization. Second quarter and first half 2024 sales were also impacted by customer inventory adjustments which adversely affected customer orders and sales in these periods. In addition, first half 2024 sales were also adversely affected by the timing of seasonal sales between first quarter 2024 and fourth quarter 2023 when compared to the prior year comparative periods.
Second quarter and first half 2024 gross profit margins benefited from higher price realization and improvements in plant manufacturing operating efficiencies. However, lower sales volumes adversely affected our results in second quarter and first half 2024 because much of our plant overhead costs, and certain other costs and operating expenses, do not decrease with lower sales. More favorable freight and delivery costs in second quarter and first half 2024 contributed to increased net earnings in these periods.
In response to increases in input costs in recent years, many companies in the consumer products industry have increased selling prices. We have implemented price increases as well during this period with the objective of improving sales price realization in order to recover our margin declines. We made progress in restoring our margins in 2023 and continue to do so in 2024. Cocoa and chocolate costs have moved significantly higher in the markets this year, and we expect these increases to have some adverse effects on our input costs and margins in second half 2024 and 2025. Although the Company continues to monitor its input costs, we are mindful of the effects and limits when passing on the above-discussed higher input costs to our customers as well as the final consumers of our products.
Second quarter and first half 2024 net earnings benefited from increased investment income from the Company’s investments in marketable securities, higher leasing revenue from the leasing of certain real estate to third parties, and more favorable foreign exchange. The Company’s effective income tax rates were 23.1% and 24.7% in second quarter 2024 and 2023, respectively, and 22.3% and 24.3% in first half 2024 and 2023, respectively. These lower effective income tax rates also contributed to higher net earnings in second quarter and first half 2024. Lower state income taxes and increases in federal income tax credits were the principal reasons for these lower effective income tax rates. Earnings per share did benefit from stock purchases in the open market over the preceding twelve months resulting in fewer shares outstanding in second quarter and first half 2024 compared to the corresponding periods in 2023.
We are focused on the longer term and therefore are continuing to make investments in plant manufacturing operations to meet new consumer and customer product demands, achieve product quality improvements, expand capacity in certain product lines, and increase operational efficiencies in order to provide genuine value to consumers.”
This release contains forward-looking statements that are based largely on the Company’s current expectations and are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as “anticipated,” “believe,” “expect,” “intend,” “estimate,” “project,” “plan” and other words of similar meaning in connection with a discussion of future operating or financial performance and are subject to certain factors, risks, trends and uncertainties that could cause actual results and achievements to differ materially fro
Apr 25, 2024
Feb 20, 2024
Oct 26, 2023
Jul 26, 2023
Apr 26, 2023
Feb 15, 2023
0000098677false00000986772023-02-142023-02-14
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: February 14, 2023
(Date of earliest event reported)
(Exact name of registrant as specified in its charter)
Virginia (State or other jurisdiction of incorporation)
001-01361 (Commission File Number)
22-1318955 (IRS Employer Identification No.)
7401 South Cicero Avenue Chicago, IL 60629 (Address of principal executive offices)
Registrant’s telephone number including area code: (773) 838-3400
Not Applicable (Former name or former address if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13 e-4(c) under the Exchange Act (17 CFR 240.13 e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
Title of each class:
Trading Symbol
Name of each exchange on which registered:
Common Stock, par value $0.69-4/9 per share
TR
New York Stock Exchange
Item 2.02. Results of Operations and Financial Condition.
On February 14, 2023, Tootsie Roll Industries, Inc. issued a press release (the "release") announcing its results of operations and financial condition for the fourth quarter ended December 31, 2022. A copy of the release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
The information in the release and in this Item 2.02 is "furnished" and not "filed" for purposes of Section 18 of the Securities and Exchange Act of 1934, or otherwise subject to the liabilities of that section. Such information may only be incorporated by reference in another filing under the Securities Exchange Act of 1934 or the Securities Act of 1933 only if and to the extent such subsequent filing specifically references such information.
Item 9.01. Financial Statements and Exhibits.
(c) The following exhibit is furnished with this report:
Exhibit 99.1
Press Release of Tootsie Roll Industries, Inc., dated February 14, 2023.
Exhibit 104
Cover Page Interactive Data File (formatted as inline XBRL).
2
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the under-signed thereunto duly authorized.
February 15, 2023
By:
G. Howard Ember, Jr.
Vice President Finance and Chief Financial Officer
3
Oct 27, 2022
2 tr-20221026xex99d1.htm
Exhibit 99.1
7401 South Cicero Avenue
Chicago, IL 60629
Phone 773/838-3400
Fax 773/838-3534
Wednesday, October 26, 2022
CHICAGO, ILLINOIS – October 26, 2022 - Ellen R. Gordon, Chairman, Tootsie Roll Industries, Inc. reported third quarter and nine months 2022 net sales and net earnings.
Third quarter 2022 net sales were $211,888,000 compared to $183,090,000 in third quarter 2021, an increase of $28,798,000 or 16%. Third quarter 2022 net earnings were $26,577,000 compared to $24,733,000 in third quarter 2021, and net earnings per share were $0.39 and $0.36 in third quarter 2022 and 2021, respectively, an increase of $0.03 per share or 8%.
Nine months 2022 net sales were $493,260,000 compared to $399,445,000 in nine months 2021, an increase of 93,815,000 or 23%. Nine months 2022 net earnings were $50,593,000 compared to $45,294,000 in nine months 2021, and net earnings per share were $0.73 and $0.65 in nine months 2022 and 2021, respectively, an increase of $0.08 per share or 12%.
Mrs. Gordon said, “The sales growth in third quarter and nine months 2022 was driven by an overall increase in demand and higher sales price realization. Effective sales and marketing programs, including pre-Halloween sales programs in the third quarter 2022, also contributed to higher sales. The Company had continuing improvement in customer orders and sales throughout 2021 and into the first nine months of 2022 as consumers returned to more activities and lifestyles that they experienced prior to the Covid-19 pandemic. These activities include planned purchases of the Company’s products for “sharing” and “give-a-way” occasions. Many of the Company’s products are consumed at group events, outings, and other gatherings, including Halloween events, which had been curtailed or in some cases eliminated in response to the Covid-19 pandemic. Third quarter and nine months 2022 sales also exceeded third quarter and nine months 2019 sales by 16% and 27%, respectively, which provides a sales comparison prior to the pandemic.
Although higher third quarter and nine months 2022 sales, including sales price increases, contributed to improved net earnings compared to the corresponding prior year periods in 2021, significantly higher input costs mitigated much of the benefits of these higher sales. When compared to these prior year periods, third quarter and nine months 2022 gross profit margins and net earnings were adversely affected by significantly higher costs for ingredients, packaging materials, freight and delivery, and many manufacturing supplies and services. We also incurred additional costs, including overtime and extended operating shifts for plant manufacturing, to meet this higher demand.
Our input unit costs moved significantly higher in the nine months 2022 period as most of our supply contracts for ingredients, packaging materials and manufacturing supplies and services expired at the end of 2021 and new supply agreements at higher prices became effective in early 2022. In certain instances, we have expanded our annual commitments for some ingredients from our suppliers to meet higher demand, however, certain markets are very tight and this incremental expansion has and will continue to result in yet higher unit costs for these
additional materials. Supplier and transportation delays also caused us to purchase some limited quantities of ingredients in the spot market which were at substantially higher costs than our contracted prices. Supply chain challenges and limited availability of certain ingredients and materials, as well as generally higher commodity markets, have driven up our costs for many key ingredients and materials in 2022. The adverse effects of higher energy costs, including higher fuel surcharges, have added to our input costs on both customer and supplier freight and delivery in 2022. These higher energy costs have also increased our costs for utilities to operate our manufacturing plants this year. We expect these higher input costs to continue through the balance of 2022 and are seeing even higher costs for many ingredients and materials in 2023. The Company uses the Last-In-First-Out (LIFO) method of accounting for inventory and costs of goods sold which results in lower current income taxes during such periods of increasing costs, but this method does charge the most current costs to cost of goods sold and thereby accelerates the realization of these higher costs.
In response to these higher input costs many companies in the consumer products industry have increased selling prices throughout 2021 and 2022. We have followed with price increases as well with the objective of improving sales price realization and restoring some of our margin declines. Price increases were phased in principally be
Jul 27, 2022
2 tr-20220726xex99d1.htm
Exhibit 99.1
7401 South Cicero Avenue
Chicago, IL 60629
Phone 773/838-3400
Fax 773/838-3534
Tuesday, July 26, 2022
CHICAGO, ILLINOIS – July 26, 2022 - Ellen R. Gordon, Chairman, Tootsie Roll Industries, Inc. reported second quarter and first half 2022 net sales and net earnings.
Second quarter 2022 net sales were $142,081,000 compared to $114,560,000 in second quarter 2021, an increase of $27,521,000 or 24%. Second quarter 2022 net earnings were $11,989,000 compared to $9,794,000 in second quarter 2021, and net earnings per share were $0.17 and $0.14 in second quarter 2022 and 2021, respectively, an increase of $0.03 per share or 21%.
First half 2022 net sales were $281,372,000 compared to $216,355,000 in first half 2021, an increase of $65,017,000 or 30%. First half 2022 net earnings were $24,016,000 compared to $20,561,000 in first half 2021, and net earnings per share were $0.35 and $0.29 in first half 2022 and 2021, respectively, an increase of $0.06 per share or 21%.
Mrs. Gordon said, “The sales growth in second quarter and first half 2022 was driven by an overall increase in demand and reflects effective sales and marketing programs. The Company had continuing improvement in customer orders and sales throughout 2021 and into first half 2022 as consumers returned to more activities and lifestyles that they experienced prior to the Covid-19 pandemic. These activities include planned purchases of the Company’s products for “sharing” and “give-a-way” occasions. Many of the Company’s products are consumed at group events, outings, and other gatherings which had been significantly curtailed or in some cases eliminated in response to the Covid-19 pandemic. Both second quarter and first half 2022 sales also benefited from the timing of some sales which were rescheduled from the preceding periods due to some supply chain and manufacturing delays that we experienced. Second quarter and first half 2022 sales also exceeded second quarter and first half 2019 sales by 34% and 36%, respectively, which provides a sales comparison prior to the pandemic.
Although higher second quarter and first half 2022 sales contributed to improved net earnings compared to corresponding prior year periods in 2021, significantly higher input costs mitigated much of the benefits of these increased sales. When compared to these prior year periods, second quarter and first half 2022 gross profit margins and net earnings were adversely affected by significantly higher costs for ingredients, packaging materials, freight and delivery, and many manufacturing supplies and services. We also incurred additional costs, including overtime and extended operating shifts for plant manufacturing, to meet this higher demand.
Our input unit costs moved significantly higher in second quarter and first half 2022 as most of our supply contracts for ingredients, packaging materials and manufacturing supplies and services expired at the end of 2021 and new supply agreements at higher prices became effective in early 2022. In certain instances, we have expanded our annual commitments for some ingredients from our suppliers to meet higher demand, however, certain markets are very tight and this incremental expansion has and will continue to result in yet higher unit costs for these additional materials. Supply chain challenges and limited availability of certain ingredients and materials, as well as generally higher commodity markets, are driving up our costs for many key ingredients and
materials. The adverse effects of higher energy costs, including higher fuel surcharges, have added to our input costs on both customer and supplier freight and delivery in 2022. These higher energy costs have also increased our costs for utilities to operate our manufacturing plants this year. We expect these higher input costs to continue through the balance of 2022 and are seeing even higher overall costs for ingredients and materials in 2023. The Company uses the Last-In-First-Out (LIFO) method of accounting for inventory and costs of goods sold which results in lower current income taxes during such periods of increasing costs, but this method does charge the most current costs to cost of goods sold and thereby accelerates the realization of these higher costs.
In response to these higher input costs many companies in the consumer products industry have announced increases in selling prices. We have followed with price increases as well with the objective of improving sales price realization and restoring some of our margin declines. Price increases were phased in principally during second half 2021 and first quarter 2022. Although our price increases have generally reflected the overall price increases in our industry, they have not resulted in restoring ou
Apr 27, 2022
2 tr-20220426xex99d1.htm
Exhibit 99.1
7401 South Cicero Avenue
Chicago, IL 60629
Phone 773/838-3400
Fax 773/838-3534
Tuesday, April 26, 2022
CHICAGO, ILLINOIS – April 26, 2022 - Ellen R. Gordon, Chairman, Tootsie Roll Industries, Inc. reported first quarter 2022 net sales and net earnings.
First quarter 2022 net sales were $139,291,000 compared to $101,795,000 in first quarter 2021, an increase of $37,496,000, or 37%. First quarter 2022 net earnings were $12,027,000 compared to $10,767,000 in first quarter 2021, and net earnings per share were $0.17 and $0.15 in first quarter 2022 and 2021, respectively, an increase of $0.02 per share or 13%.
Mrs. Gordon said, “The growth in first quarter 2022 sales, driven by an overall increase in demand, is reflective of effective sales and marketing programs and the favorable effects of the continuing economic recovery from the adverse effects of the Covid-19 pandemic. The Company had continuing improvement in customer orders and sales throughout 2021 and into the first quarter 2022 as consumers returned to more activities which included planned purchases of the Company’s products for “sharing” and “give-a-way” occasions. Many of the Company’s products are consumed at group events, outings, and other gatherings which had been significantly curtailed or in some cases eliminated in response to the Covid-19 pandemic. First quarter 2022 sales also benefited from the timing of some sales which were rescheduled from fourth quarter 2021 to first quarter 2022 due to some supply chain and manufacturing delays that we experienced. First quarter 2022 sales also exceeded first quarter 2019 sales by 38% which provides a quarterly sales comparison prior to the pandemic.
Although higher first quarter 2022 sales contributed to improved net earnings compared to first quarter 2021, significantly higher input costs mitigated much of the benefits of these increased sales. When compared to first quarter 2021, first quarter 2022 gross profit margins and net earnings were adversely affected by significantly higher costs for ingredients, packaging materials, freight and delivery, and certain manufacturing supplies and services. We are currently experiencing some of the highest increases in our total input costs that we have seen in decades.
Our input unit costs moved significantly higher in first quarter 2022 as most of our supply contracts for ingredients and packaging materials expired at the end of 2021 and new supply agreements at much higher prices became effective in first quarter 2022. In certain instances, we have recently expanded our annual commitments for some ingredients from our suppliers to meet higher demand, however, certain markets are very tight and this incremental expansion has and will continue to result in yet higher unit costs for these additional materials. Higher commodity markets, including the effects of the war in Ukraine, and limited availability of certain ingredients and materials, are driving up our costs for many key ingredients. The adverse effects of higher energy costs, including higher fuel surcharges, are also adding to our input costs on both customer and supplier freight and delivery. We expect these higher input costs to continue through the balance of 2022. The Company uses the Last-In-First-Out (LIFO) method of accounting for inventory and costs of goods sold which results in lower current income taxes during such periods of increasing costs, but this method does charge the most current costs to cost of goods sold and thereby accelerates the realization of these higher costs.
In response to these higher input costs many companies in the consumer products industry have announced increases in selling prices. We have followed with price increases as well with the objective of improving sales price realization and restoring some of our margin declines. Price increases were phased in principally during fourth quarter 2021 and first quarter 2022, and additional price increases will be implemented in second quarter 2022 on some products where prices were not previously increased. Although our price increases generally reflect the overall price increases in our industry, they will not result in restoring our margins to historical levels. Although the Company continues to monitor these higher input costs and price increases in the industry, we are mindful of the effects and limits of passing on all of the above discussed higher input costs to consumers of our products.
Our supply chain has been extremely challenging in 2022, as our supplier lead times have expanded greatly, or our suppliers have been unable to meet promised delivery dates, some of which is due to rail and truck delivery limitations and constraints. In some cases, we are unable to secure timely delivery of
Feb 15, 2022
2 tr-20220215xex99d1.htm
Exhibit 99.1
7401 South Cicero Avenue
Chicago, IL 60629
Phone 773/838-3400
Fax 773/838-3534
Tuesday, February 15, 2022
CHICAGO, ILLINOIS – February 15, 2022 - Ellen R. Gordon, Chairman, Tootsie Roll Industries, Inc. reported fourth quarter and twelve months 2021 net sales and net earnings.
Fourth quarter 2021 net sales were $166,598,000 compared to $127,866,000 in fourth quarter 2020, an increase of $38,732,000, or 30%. Fourth quarter 2021 net earnings were $20,032,000 compared to $14,952,000 in fourth quarter 2020, and net earnings per share were $0.30 and $0.22 in fourth quarter 2021 and 2020, respectively, an increase of $0.08 or 36%.
Twelve months 2021 net sales were $566,043,000 compared to $467,427,000 in twelve months 2020, an increase of $98,616,000, or 21%. Twelve months 2021 net earnings were $65,326,000 compared to $58,995,000 in twelve months 2020, and net earnings per share were $0.97 and $0.86 in twelve months 2021 and 2020, respectively, an increase of $0.11 per share or 13%.
Mrs. Gordon said, “The growth in fourth quarter and twelve months 2021 sales reflect effective sales and marketing programs as well as the favorable effects of the continuing economic recovery from the adverse effects of the Covid-19 pandemic. The Company had continuing improvement in customer orders and sales throughout 2021 as consumers returned to more activities which included planned purchases of the Company’s products for “sharing” and “give-a-way” occasions. Many of the Company’s products are consumed at group events, outings, and other gatherings which had been significantly curtailed or in some cases eliminated in response to the Covid-19 virus. Fourth quarter 2021 sales also exceeded fourth quarter 2019 sales by 24% which provides a quarterly sales comparison prior to the pandemic, and twelve months 2021 sales were 8% ahead of twelve months 2019 sales. Fourth quarter 2021 sales also benefited from the timing of some sales that were rescheduled from third to fourth quarter due to supply chain disruptions.
Although higher fourth quarter and twelve months 2021 sales contributed to improved net earnings compared to the corresponding prior year periods, higher input costs mitigated much of the benefits of increased sales. Fourth quarter and twelve months 2021 gross profit margins and net earnings were adversely affected by increasing costs for ingredients, packaging materials, freight and delivery, and certain manufacturing supplies and services. Fourth quarter and twelve months’ results were also adversely impacted by inefficiencies caused by higher than expected sales demand, supply chain challenges and disruptions, longer supplier lead times, and some labor shortages. These factors resulted in additional costs related to our efforts to meet this higher demand.
In response to these higher input costs, the confectionary industry, as well as many companies in the broader consumer products industry, announced increases in selling prices. We have followed with price increases as well with the objective of improving sales price realization and restoring margin declines. Price increases, which
principally became effective during fourth quarter 2021, contributed to the improved results in fourth quarter 2021 as well as the twelve months 2021. Price increases for certain products that were not increased in 2021 have also been announced for first half 2022 in our continuing efforts to restore margins.
Our input costs continued to remain elevated in fourth quarter 2021 and we see even higher costs in 2022 as our 2021 supply contracts and hedging programs come to closure and new contracts and hedging at higher 2022 costs begin to take effect. Higher commodity markets are driving up our costs for key ingredients, packaging materials and energy, including the adverse effects of higher energy costs on freight and delivery fuel surcharges and plant manufacturing utilities. We expect these higher input costs and the overall increase in inflation, some of which is driven by supply chain problems, to continue through most of, and possibly all of, 2022. The Company uses the Last-In-First-Out (LIFO) method of accounting for inventory and costs of goods sold which results in lower current income taxes during such periods of increasing costs, but this method does charge the most current costs to cost of goods sold and thereby accelerates the realization of these higher costs. Although the Company continues to monitor these higher input costs and price increases in the industry, we are mindful of the effects and limits of passing on all of the above discussed higher input costs to consumers of our products. As a result, we believe that margins for part or all of 2022 will not fully recover to historical norms.
Oct 28, 2021
2 tr-20211028xex99d1.htm
Exhibit 99.1
7401 South Cicero Avenue
Chicago, IL 60629
Phone 773/838-3400
Fax 773/838-3534
Wednesday, October 27, 2021
CHICAGO, ILLINOIS – October 27, 2021 - Ellen R. Gordon, Chairman, Tootsie Roll Industries, Inc. reported third quarter and nine months 2021 net sales and net earnings.
Third quarter 2021 net sales were $183,090,000 compared to $156,962,000 in third quarter 2020, an increase of $26,128,000 or 17%. Third quarter 2021 net earnings were $24,733,000 compared to $24,673,000 in third quarter 2020, and net earnings per share were $0.37 and $0.36 in third quarter 2021 and 2020, respectively, an increase of $0.01 per share or 3%.
Nine months 2021 net sales were $399,445,000 compared to $339,561,000 in nine months 2020, an increase of $59,884,000 or 18%. Nine months 2021 net earnings were $45,294,000 compared to $44,043,000 in nine months 2020, and net earnings per share were $0.67 and $0.64 in nine months 2021 and 2020, respectively, an increase of $0.03 per share or 5%.
Mrs. Gordon said, “The growth in third quarter and nine months 2021 sales reflect effective sales and marketing programs as the economy continues to recover and “re-open” from the adverse effects of the Covid-19 pandemic. As the effects of the pandemic subsided throughout the first nine months of 2021, the Company had continuing improvement in customer orders and sales. Third quarter 2021 sales also exceeded third quarter 2019 sales by 1% which provides a quarterly sales comparison prior to the pandemic, and nine months 2021 sales were 3% ahead of nine months 2019 sales.
Although higher third quarter and nine months 2021 sales contributed to improved net earnings in the corresponding prior year periods, higher input costs mitigated much of the benefits of higher sales. Third quarter and nine months 2021 gross profit margins and net earnings were adversely affected by increasing costs for ingredients, packaging materials, freight and delivery, and certain manufacturing supplies. Third quarter and nine months results were also adversely affected by higher than expected sales demand and supply chain challenges and disruptions which resulted in additional costs related to our efforts to meet this higher demand. In response to these higher costs, the confectionary industry has announced increases in selling prices with the objective of restoring some to the resulting margin declines, and we have followed with price increases as well. These price increases will be phased in primarily during fourth quarter 2021 and the beginning of 2022.
Our costs continued to escalate in third quarter 2021 and we see even higher costs in 2022 as our 2021 supply contracts and hedging programs come to closure and new contracts and hedging at higher 2022 costs begin to take effect. Higher commodity markets are driving up our key ingredients, packaging materials and energy costs, including the adverse effects of higher energy costs on freight and delivery fuel surcharges and plant
manufacturing utilities. We expect these higher costs and resulting overall increases in inflation, some of which is driven by supply chain problems, to continue through 2022. The Company uses the Last-In-First-Out (LIFO) method of accounting for inventory and costs of goods sold which results in charging the most current costs to cost of goods sold and thereby accelerating the realization of these higher costs as well as lower current income taxes. Although the Company continues to monitor these higher costs and price increases in the industry, we must be mindful of the effects and limits of passing on all of the above discussed higher costs to the consumers of our products.
Nine months 2021 includes pre-tax foreign exchange gains of $506,000 compared to gains of $1,440,000 in nine months 2020, which adversely affects the comparison of nine months 2021 to 2020. The Company’s effective income tax rates were 21.3% and 21.4% in third quarter 2021 and 2020, respectively, and 23.0% and 22.6% in nine months 2021 and 2020, respectively. Earnings per share benefited from stock purchases in the open market resulting in fewer shares outstanding in both third quarter and nine months 2021.
We are focused on the longer term and therefore are continuing to make investments in plant manufacturing operations to meet new consumer and customer product demands, achieve product quality improvements, increase operational efficiencies and provide genuine value to consumers. The effects of Covid-19 pandemic, including variants, are unprecedented, and therefore the Company is unable to determine the related effects on its sales and net earnings for the balance of 2021 and in 2022.”
This release contains forward-looking statements that are based lar
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