Tootsie Roll Industries (TR) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 net sales declined 2% year-over-year to $191.4M; net earnings fell 23% to $22.5M.

• Full-year 2024 net sales decreased 6% to $715.5M; net earnings dropped 6% to $86.8M.

• Adjusted for a nonrecurring deferred tax asset write-off, Q4 net earnings would have risen 14% and full-year net earnings 6%.

Financial highlights

• Q4 2024 EPS was $0.32, down from $0.41 in Q4 2023; full-year EPS was $1.22, down from $1.28.

• Gross profit margins improved due to higher price realization and manufacturing efficiencies.

• LIFO liquidation in Q4 2024 benefited operating and net earnings.

• Increased investment income and higher leasing revenue contributed positively to earnings.

Outlook and guidance

• Cocoa and chocolate costs are expected to rise further in 2025 as new supply contracts at higher prices take effect.

• Company remains focused on long-term investments in manufacturing to expand capacity and improve efficiencies.