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Mar 31, 2020
Tootsie Roll Q1 2020 Earnings Report
Tootsie Roll Industries reported an increase in net sales and net earnings for Q1 2020.
Key Takeaways
Tootsie Roll Industries reported a 2% increase in net sales and a 38% increase in net earnings for the first quarter of 2020. Net sales reached $102,803,000, while net earnings amounted to $11,982,000, or $0.18 per share.
Net sales increased by 2% to $102,803,000 in Q1 2020 compared to $101,019,000 in Q1 2019.
Net earnings rose to $11,982,000 in Q1 2020, up from $8,955,000 in Q1 2019.
Earnings per share increased to $0.18 in Q1 2020, compared to $0.13 in Q1 2019.
The company experienced a significant decline in customer orders and sales in Q2 2020 due to the Covid-19 pandemic, which is expected to adversely affect net earnings in Q2 2020 and potentially Q3 and Q4.
Tootsie Roll
Tootsie Roll
Forward Guidance
Due to the adverse effects of the Covid-19 pandemic on the overall economy, the Company has experienced a significant decline in customer orders and sales in second quarter 2020, and expects this trend to adversely affect net earnings in second quarter 2020 and may affect the third and fourth quarters in 2020 as well.
Challenges Ahead
- Significant decline in customer orders and sales in Q2 2020 due to Covid-19.
- Expected adverse effect on net earnings in Q2 2020.
- Potential adverse effects on net earnings in Q3 and Q4 2020.
- Uncertainty regarding the full impact of Covid-19 on sales and net earnings for the balance of 2020.
- The effects of Covid-19 are unprecedented, and therefore the Company is unable to ascertain the effects on its sales and net earnings for the balance of 2020.