NYSE$TR

Tootsie Roll Industries Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Tootsie Roll Industries' Q3 2023 performance was marked by increased net sales and net earnings compared to the same period in 2022.

Tootsie Roll Industries reported an increase in net sales and net earnings for the third quarter of 2023. Net sales rose by 17% to $248,336,000, and net earnings increased to $34,382,000, with earnings per share at $0.49.

  • Third quarter net sales increased by 17% compared to 2022, reaching $248,336,000.
  • Net earnings for the third quarter rose to $34,382,000, up from $26,577,000 in 2022.
  • Earnings per share increased by 32% to $0.49, compared to $0.37 in the third quarter of 2022.
  • Sales growth was driven by effective sales and marketing programs and higher sales price realization.

Headline financials

Total Revenue

$250M

Previous: $213M+17.2%
EPS (adj)

$0.49

Previous: $0.38+28.9%
Capital Expenditures

-$19.5M

Previous: -$17.6M-10.9%
Free Cash Flow

$14.9M

Previous: $9.03M+65.4%
Net Income

$34.4M

Previous: $26.6M+29.4%
Operating Income

$45.9M

Previous: $35.6M+29.0%
Gross Profit

$85.2M

Previous: $71.5M+19.1%
Cash & Equivalents

$47.3M

Previous: $57.2M-17.3%
Total Assets

$1.07B

Previous: $1.03B+3.9%

Revenue & EPS history

Tootsie Roll · Revenue · Quarterly

$250M

Q3 2023+17.2%vs Q3 2022

Forward guidance

The company anticipates that the timing of sales between the third and fourth quarters of 2023 and 2022 will have some adverse effect on sales and earnings in fourth quarter 2023 when compared to fourth quarter 2022. The company believes that its overall unit costs for ingredients and packaging will be even higher in 2024 than in 2023, which may not allow them to fully restore their margins to historical levels.

Tailwinds

  • The company has been implementing price increases to improve sales price realization and offset higher input costs.
  • Progress has been made in restoring margins, though not yet to historical levels.
  • The company's supply chain improved significantly in 2023 compared to 2022.
  • The company is focused on making investments in plant manufacturing operations to meet new consumer demands, improve product quality, expand capacity, and increase efficiencies.
  • Earnings per share benefited from stock purchases in the open market, resulting in fewer shares outstanding.

Headwinds

  • The timing of sales between Q3 and Q4 in 2023 and 2022 is expected to adversely affect sales and earnings in Q4 2023 compared to Q4 2022.
  • Significantly higher input costs mitigated much of the benefits of higher sales in Q3 and nine months 2023.
  • Gross profit margins and net earnings were adversely affected by higher costs for ingredients, packaging materials, labor, and plant manufacturing operating supplies.
  • Overall unit costs for ingredients and packaging are expected to be even higher in 2024 than in 2023.
  • Continuing increases in input costs and overall high inflation may not allow the company to fully restore its margins to historical levels.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-0.2%

Avg return

Earnings day

-0.3%

Avg return

5 days after

+1.4%

Avg return

30 days after

46%

31 / 67 earnings

Positive

+4.0%

Q3 2023

Best reaction

-6.8%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.8%+2.8%-4.3%
Q3 2025-6.8%-15.2%-8.5%
Q1 2025+2.8%+1.2%+9.3%
Q4 2024-1.0%-1.1%+0.4%
Q3 2024+0.7%+2.2%+11.5%
Q2 2024-0.9%-2.5%+9.5%
Q1 2024-0.7%-1.1%-3.7%
Q4 2023+0.6%+1.1%+2.0%
Q3 2023+4.0%+5.5%+17.2%
Q2 2023-2.0%-2.8%-9.7%
Q1 2023+1.7%-2.5%-0.2%
Q4 2022-3.1%+1.5%+1.6%
Q3 2022-1.8%+1.0%+10.0%
Q2 2022+1.4%+2.9%+7.8%
Q1 2022-2.6%-2.5%-9.4%
Q4 2021+0.7%+1.3%+4.5%
Q3 2021+1.1%+2.9%+1.6%
Q2 2021-2.1%+1.4%-6.6%
Q1 2021-2.0%-3.8%-4.8%
Q4 2020-4.3%+0.2%+11.8%
Q3 2020+0.7%+4.9%-0.2%
Q2 2020-4.3%-3.2%-1.2%
Q1 2020+0.6%-1.3%-5.3%
Q4 2019-1.0%+0.4%+7.2%
Q3 2019+1.0%-1.0%+1.7%
Q2 2019-1.9%+1.4%-0.6%
Q1 2019+1.8%-0.6%+2.7%
Q4 2018-0.3%+0.4%+1.7%
Q3 2018+3.5%+1.3%+14.8%
Q2 2018+1.0%-0.3%-2.2%
Q1 2018+0.0%+0.5%-1.2%
Q4 2017+1.6%+1.8%-9.0%
Q3 2017-2.5%-3.6%-0.4%
Q2 2017+0.8%-0.1%-1.4%
Q1 2017+2.5%-1.6%-6.9%
Q4 2016+0.4%-1.6%+3.7%
Q3 2016+1.7%+1.4%+9.9%
Q2 2016-0.2%-2.0%+0.3%
Q1 2016+1.4%
Q4 2015-0.7%
Q3 2015-0.7%
Q2 2015-1.6%
Q1 2015-0.3%
Q4 2014+0.4%
Q3 2014+0.2%
Q2 2014+0.2%
Q1 2014-2.2%
Q4 2013-1.2%
Q3 2013+2.1%
Q2 2013-0.6%
Q1 2013-2.3%
Q2 2012+2.2%
Q4 2012+0.8%
Q3 2012-1.7%
Q1 2012+1.3%
Q2 2011-1.0%
Q4 2008-1.0%
Q4 2011-1.0%
Q3 2011+2.2%
Q1 2010+0.5%
Q1 2011+0.5%
Q2 2010-2.0%
Q4 2010-2.0%
Q3 2009-1.0%
Q3 2010-1.0%
Q4 2009-0.3%
Q2 2009-0.3%

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