Tootsie Roll Industries reported a 1% decrease in third quarter 2026 net sales to $227.2 million, while net earnings fell sharply to $23.2 million. Management attributed the decline to the adverse timing of seasonal Halloween shipments and significant inflationary pressure from ingredient costs.
Key Highlights
- Net earnings per share dropped to $0.31 from $0.48 in the prior-year quarter, a 35% decrease.
- Gross margins were negatively impacted by higher unit costs for cocoa, chocolate, and resin-based packaging materials.
- Elevated energy costs led to significant increases in freight and delivery expenses, specifically driven by higher diesel fuel surcharges.
- The company completed the acquisition of the Winis confectionery brand in Mexico on September 1, 2026, incurring $1.3 million in acquisition-related expenses during the quarter.