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Sep 30, 2021
Tootsie Roll Q3 2021 Earnings Report
Tootsie Roll Industries' third quarter 2021 results were released, revealing increased net sales and net earnings compared to the same period in 2020.
Key Takeaways
Tootsie Roll Industries reported an increase in net sales and net earnings for the third quarter of 2021. Net sales rose by 17% to $183.09 million, while net earnings increased slightly to $24.733 million, resulting in earnings per share of $0.37.
Net sales for the third quarter of 2021 increased by 17% to $183.09 million compared to $156.962 million in 2020.
Net earnings for the third quarter of 2021 were $24.733 million, slightly up from $24.673 million in 2020.
Earnings per share increased to $0.37 in the third quarter of 2021, compared to $0.36 in the third quarter of 2020.
Increased input costs partially offset the benefits of higher sales, impacting gross profit margins and net earnings.
Tootsie Roll
Tootsie Roll
Forward Guidance
The company anticipates continued higher costs in 2022 due to increasing commodity markets and supply chain challenges, which are expected to persist. Price increases have been implemented to offset margin declines, but the company remains mindful of the limits of passing on costs to consumers.
Challenges Ahead
- Higher commodity markets are driving up costs for ingredients, packaging materials, and energy.
- Increased energy costs are adversely affecting freight and delivery fuel surcharges and plant manufacturing utilities.
- Supply chain problems are expected to continue through 2022, contributing to overall inflation.
- The company's LIFO accounting method will accelerate the realization of higher costs.
- The company is mindful of the effects and limits of passing on higher costs to consumers.