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Sep 30, 2022
Tootsie Roll Q3 2022 Earnings Report
Tootsie Roll Industries' Q3 2022 earnings increased due to overall demand and higher sales price realization.
Key Takeaways
Tootsie Roll Industries reported a rise in net sales and net earnings for Q3 2022, driven by increased demand and higher sales prices. Net sales increased by 16% to $211,888,000, and net earnings increased to $26,577,000, or $0.39 per share.
Net sales for Q3 2022 increased by 16% compared to Q3 2021, reaching $211,888,000.
Net earnings for Q3 2022 were $26,577,000, up from $24,733,000 in Q3 2021.
Earnings per share increased to $0.39 in Q3 2022, compared to $0.36 in Q3 2021.
Sales growth was attributed to overall increased demand, higher sales price realization, and effective sales and marketing programs.
Tootsie Roll
Tootsie Roll
Forward Guidance
The company anticipates ongoing challenges related to input costs and supply chain disruptions, which may affect future performance. While price increases are expected to improve margins in 2023, continued cost increases and inflation could hinder this objective.
Positive Outlook
- Price increases are expected to improve sales price realization.
- Meaningful progress in restoring lost margins in 2023 is expected when all price increases take full effect.
- Company is focused on longer term and therefore are continuing to make investments in plant manufacturing operations.
- Company aims to meet new consumer and customer product demands.
- Company aims to achieve product quality improvements.
Challenges Ahead
- Higher input costs are expected to continue through the balance of 2022 and into 2023.
- Continuing increases in input costs and overall higher inflation may inhibit the company from accomplishing its objective of restoring lost margins.
- Supply chain disruptions could result in the temporary shut-down of one or more manufacturing lines.
- Labor shortages at some plant locations have contributed to some production limitations.
- The effects of the Covid-19 pandemic are unprecedented, and therefore the Company is unable to determine the related effects on its sales and net earnings for the balance of 2022 and beyond.