NYSE$TR

Tootsie Roll Industries Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$167M

Previous: $128M+30.3%
EPS (adj)

$0.29

Previous: $0.22+31.8%
Capital Expenditures

$8.5M

Previous: $6.55M+29.8%
Free Cash Flow

$44.6M

Previous: $44.1M+1.3%
Net Income

$20M

Previous: $15M+34.0%
Operating Income

$20.2M

Previous: $11.5M+75.8%
Gross Profit

$56M

Previous: $44.9M+24.8%
Cash & Equivalents

$106M

Previous: $167M-36.6%
Total Assets

$1.02B

Previous: $985M+3.5%

Revenue & EPS history

Tootsie Roll · Revenue · Quarterly

$167M

Q4 2021+30.3%vs Q4 2020

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.

Tailwinds

  • 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.

Headwinds

  • 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.
  • Margins for part or all of 2022 may not fully recover to historical norms.
  • The effects of the Covid-19 pandemic on sales and net earnings in 2022 and beyond are uncertain.

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 Q4 2021

Historical avgQ4 2021

-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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