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Dec 31, 2021
Tootsie Roll Q4 2021 Earnings Report
Tootsie Roll Industries experienced increased net sales and net earnings in Q4 2021, driven by effective sales and marketing programs and economic recovery, but higher input costs partially offset these gains.
Key Takeaways
Tootsie Roll Industries reported a 30% increase in net sales and a 36% increase in net earnings for Q4 2021 compared to Q4 2020. The growth was attributed to effective sales and marketing programs and the favorable effects of economic recovery from the Covid-19 pandemic. However, higher input costs mitigated some of the benefits of increased sales.
Net sales for Q4 2021 increased by 30% to $166.598 million, compared to $127.866 million in Q4 2020.
Net earnings for Q4 2021 rose by 36% to $20.032 million, compared to $14.952 million in Q4 2020.
Net earnings per share for Q4 2021 increased to $0.30, up from $0.22 in Q4 2020.
The company faced higher input costs, including ingredients, packaging, and freight, which partially offset the benefits of increased sales.
Forward Guidance
Tootsie Roll anticipates continued elevated input costs and overall inflation in 2022, which may pressure margins despite price increases. The company is focused on long-term investments in manufacturing and supply chain management, but the effects of the Covid-19 pandemic remain uncertain.
Positive Outlook
- Price increases implemented in Q4 2021 contributed to improved results.
- Further price increases are planned for the first half of 2022 to restore margins.
- The company is investing in plant manufacturing operations to meet consumer demands and improve efficiency.
- Focus on supply chain management to mitigate delays and disruptions.
- Stock purchases in the open market resulted in fewer shares outstanding, benefiting earnings per share.
Challenges Ahead
- Input costs are expected to remain elevated in 2022 due to higher commodity markets and energy costs.
- Inflation and supply chain problems are expected to persist through most of 2022.
- Higher input costs may not be fully passed on to consumers, potentially impacting margins.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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