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Dec 31, 2020
Tootsie Roll Q4 2020 Earnings Report
Tootsie Roll Industries experienced a decrease in net sales but an increase in net earnings for Q4 2020.
Key Takeaways
Tootsie Roll Industries reported a decrease in net sales but an increase in net earnings for the fourth quarter of 2020. Net sales decreased by 5% to $127.87 million, while net earnings increased to $14.95 million, with earnings per share rising to $0.23.
Net sales for Q4 2020 were $127.87 million, a 5% decrease compared to Q4 2019.
Net earnings for Q4 2020 increased to $14.95 million, compared to $14.56 million in Q4 2019.
Earnings per share for Q4 2020 increased to $0.23, up from $0.22 in Q4 2019.
The Covid-19 pandemic adversely impacted sales due to changes in consumer behavior and reduced access to certain trade channels.
Forward Guidance
Tootsie Roll Industries is unable to determine the effects of Covid-19 pandemic on sales and net earnings in 2021 and beyond.
Positive Outlook
- The Company continues to make progress in recovering the sales decline caused by the Covid-19 pandemic.
- Sales decline was narrowed to 5% in fourth quarter 2020 when compared to the corresponding quarterly periods in 2019.
- The company is focused on the longer term and therefore are continuing to make investments in plant manufacturing operations to meet new consumer and customer demands.
- The company is focused on achieving product quality improvements.
- The company is focused on increasing operational efficiencies and provide genuine value to consumers.
Challenges Ahead
- The effects of Covid-19 pandemic are unprecedented, and therefore the Company is unable to determine its effects on sales and net earnings in 2021 and beyond.
- Fourth quarter sales were adversely impacted by the effects of the Covid-19 pandemic, which continues to curtail and limit access to certain channels of trade where the Company has historically sold its products.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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