Tootsie Roll Reports 3% Increase in Q2 2025 Sales and 14% Rise in Net Earnings Per Share

Reuters07-24
<a href="https://laohu8.com/S/TROLB">Tootsie Roll</a> Reports 3% Increase in <a href="https://laohu8.com/S/QTWO">Q2</a> 2025 Sales and 14% Rise in Net Earnings Per Share

Tootsie Roll Industries Inc. has reported its financial results for the second quarter and first half of 2025. The company's net sales for the second quarter reached $153.19 million, marking a 3% increase from $148.82 million in the same period of 2024. Net earnings for the second quarter were $17.54 million, up from $15.64 million in the previous year, with net earnings per share increasing from $0.21 to $0.24, reflecting a 14% rise. For the first half of 2025, net sales slightly decreased to $299.71 million from $300.28 million in the first half of 2024. However, net earnings for the first half improved to $35.60 million compared to $31.47 million in the previous year, with earnings per share rising from $0.43 to $0.49, a 14% increase. Chairman Ellen R. Gordon attributed the second quarter's sales increase to successful marketing and sales programs, though the company faced challenges in the first half due to consumer resistance to price hikes. The company acknowledged the impact of rising input costs, particularly in cocoa and chocolate, on its gross profit margins. Tootsie Roll Industries also noted benefits from increased investment income and insurance recoveries, although the effective income tax rates were higher in 2025 compared to 2024, due to certain non-deductible deferred compensation. The company conducted stock purchases in the open market, resulting in fewer shares outstanding, which positively impacted earnings per share. The operations and sales of Tootsie Roll Industries are primarily in North America, with cross-border transactions with Canada and Mexico under the USMCA free-trade agreement.

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