TOOTSIE ROLL INDUSTRIES INC SEC 10-Q Report

Tootsie Roll Industries Inc., a leading manufacturer of confectionery products, has released its Form 10-Q report for the third quarter of 2025. The report highlights the company's financial and operational performance, showcasing both growth and challenges in various areas of its business.

Financial Highlights

• Total Revenue: $232.7 million, reflecting a 3.0% increase from the previous year due to successful marketing and sales programs.
• Total Gross Margin: $79.4 million, benefiting from higher price realization and improvements in plant manufacturing operating efficiencies.
• Earnings from Operations: $32.4 million, a decrease from the previous year due to higher selling, marketing, and administrative expenses.
• Net Earnings: $35.7 million, an increase from the previous year, supported by higher investment income and favorable changes in equity markets.
• Net Earnings Attributable to Tootsie Roll Industries, Inc. Per Share: $0.49, an increase of $0.04 per share or 8.9% from the previous year, benefiting from a reduction in average shares outstanding.

Business Highlights

• Revenue Segments: Domestic (U.S.) net product sales increased by 3.8% in the third quarter and 2.4% for the nine months of 2025 compared to the prior year, while foreign net product sales decreased by 6.1% and 12.2% for the same periods, respectively.
• Geographical Performance: Domestic sales represented 92.3% of total consolidated net product sales in the third quarter and 92.5% for the nine months of 2025, highlighting a strong domestic market presence.
• Sales Units: The company experienced a decrease in product cost of goods sold from $350,003 in nine months 2024 to $345,741 in nine months 2025, indicating improved cost management and operational efficiency.
• New Production Launches: The company is pursuing a plant expansion to meet higher demand, with expected capital expenditures of $75,000 to $85,000 over the next five years, primarily occurring in 2026 and 2027.
• Future Outlook: The company anticipates continued challenges with input costs, particularly cocoa and chocolate, which are expected to remain elevated into 2026. The company is focused on restoring margins through price increases and operational efficiencies.
• Operational Efficiency: Improvements in plant manufacturing operating efficiencies and cost reductions contributed to better gross profit margins in the third quarter and nine months of 2025.
• Market Conditions: The company faced resistance to higher prices from customers and consumers, impacting sales in the nine months of 2025, but successful marketing and sales programs helped boost domestic sales.
• Deferred Compensation Impact: Certain deferred compensation expenses, resulting from changes in market value of investments, affected product cost of goods sold and selling, marketing, and administrative expenses, but are not reflective of current operating results.

SEC Filing: TOOTSIE ROLL INDUSTRIES INC [ TR ] - 10-Q - Nov. 07, 2025