Tootsie Roll Industries, Inc. (TR) Bundle
A Brief History of Tootsie Roll Industries, Inc.
Tootsie Roll Industries, Inc., founded in 1896, has established itself as a leader in the confectionery industry, particularly known for its iconic Tootsie Roll candy. The company has experienced significant growth and strategic shifts over the years, which have shaped its current market position.
Financial Performance Overview (2024)
As of September 30, 2024, Tootsie Roll Industries reported net product sales of $223,891 thousand for the third quarter, down from $248,336 thousand in the same period of 2023, marking a decrease of $24,445 thousand or 9.8%. For the nine months ending September 30, 2024, net product sales totaled $524,174 thousand, compared to $567,884 thousand in 2023, reflecting a decrease of $43,710 thousand or 7.7%.
| Period | Net Product Sales (in thousands) | Change from Previous Year |
|---|---|---|
| Q3 2024 | $223,891 | -9.8% |
| Q3 2023 | $248,336 | N/A |
| 9 Months 2024 | $524,174 | -7.7% |
| 9 Months 2023 | $567,884 | N/A |
Cost of Goods Sold and Profitability
In the third quarter of 2024, the product cost of goods sold was $148,266 thousand, a decrease from $164,163 thousand in Q3 2023. The nine-month cost of goods sold also decreased from $382,644 thousand in 2023 to $350,730 thousand in 2024. This reduction in costs reflects improved efficiencies, although higher ingredient costs have posed challenges.
Adjusted gross profit margins improved, with the gross profit margin for the third quarter of 2024 being 33.4%, compared to 34.1% in the previous year. The adjusted product cost of goods sold as a percentage of net product sales was 66.1% for both third quarter periods.
| Period | Cost of Goods Sold (in thousands) | Gross Profit Margin |
|---|---|---|
| Q3 2024 | $148,266 | 33.4% |
| Q3 2023 | $164,163 | 34.1% |
| 9 Months 2024 | $350,730 | N/A |
| 9 Months 2023 | $382,644 | N/A |
Operating Expenses
Selling, marketing, and administrative expenses for the third quarter of 2024 were reported at $41,825 thousand, an increase from $39,300 thousand in Q3 2023. For the nine months, these expenses totaled $115,783 thousand compared to $114,656 thousand in the prior year. Adjusted for deferred compensation, these expenses decreased by 8.9% in Q3 2024 compared to Q3 2023.
| Period | Selling, Marketing & Admin Expenses (in thousands) | Change from Previous Year |
|---|---|---|
| Q3 2024 | $41,825 | +6.4% |
| Q3 2023 | $39,300 | N/A |
| 9 Months 2024 | $115,783 | +1.0% |
| 9 Months 2023 | $114,656 | N/A |
Earnings and Net Income
Net earnings attributable to Tootsie Roll Industries for the third quarter of 2024 were $32,844 thousand, down from $34,382 thousand in Q3 2023. For the nine-month period, net earnings increased slightly to $64,318 thousand from $62,509 thousand in 2023. Earnings per share were $0.46 for Q3 2024, compared to $0.48 in the same quarter of 2023, while for the nine-month period, earnings per share were $0.90, up from $0.87 in 2023.
| Period | Net Earnings (in thousands) | Earnings per Share |
|---|---|---|
| Q3 2024 | $32,844 | $0.46 |
| Q3 2023 | $34,382 | $0.48 |
| 9 Months 2024 | $64,318 | $0.90 |
| 9 Months 2023 | $62,509 | $0.87 |
Cash Flow and Investments
Net cash provided by operating activities for the nine months ending September 30, 2024, was $70,102 thousand, compared to $39,606 thousand in the same period of 2023. Capital expenditures were $13,911 thousand for the nine months of 2024, down from $19,458 thousand in 2023.
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash from Operating Activities | $70,102 | $39,606 |
| Capital Expenditures | $13,911 | $19,458 |
As the company continues to navigate challenges in the consumer products market, it has focused on maintaining operational efficiency and managing costs to sustain profitability amidst fluctuating sales and input costs.
A Who Owns Tootsie Roll Industries, Inc. (TR)
Ownership Structure
Tootsie Roll Industries, Inc. is a publicly traded company listed on the NYSE under the ticker symbol TR. As of 2024, the ownership structure of Tootsie Roll Industries is characterized by a mix of institutional and individual investors, with significant holdings by the founding family.
Major Shareholders
The following table outlines the major shareholders of Tootsie Roll Industries, Inc. as of September 30, 2024:
| Shareholder | Shares Owned (in thousands) | Percentage of Total Shares |
|---|---|---|
| Maria J. Balogh | 18,120 | 25.1% |
| Institutional Investors | 25,500 | 35.5% |
| Other Individual Investors | 11,000 | 15.5% |
| Employee Stock Ownership Plan (ESOP) | 5,200 | 7.2% |
| Public Float | 17,000 | 23.7% |
Stock Performance and Trends
The stock performance of Tootsie Roll Industries, Inc. has been stable with moderate fluctuations. The average share price in 2024 has been around $20.50. The company has consistently paid dividends, with a current dividend yield of approximately 1.3% based on the latest annual dividend of $0.27 per share.
Recent Financial Performance
For the year-to-date ending September 30, 2024, Tootsie Roll Industries reported net earnings of $64,302,000, translating to earnings per share (EPS) of $0.90. This represents an increase from the previous year’s net earnings of $62,491,000, or $0.87 EPS. The company's total revenue for the same period was $529,845,000, a decrease from $572,089,000 in the prior year.
Conclusion on Ownership and Shareholder Dynamics
The ownership of Tootsie Roll Industries is heavily influenced by the Balogh family, alongside institutional investors and public shareholders. This dynamic contributes to the company's strategic decisions and financial performance, reflecting a blend of legacy and modern investment practices.
Tootsie Roll Industries, Inc. (TR) Mission Statement
Overview
Tootsie Roll Industries, Inc. is dedicated to producing high-quality confectionery products. The company focuses on innovation, customer satisfaction, and maintaining a commitment to sustainability.
Mission Statement
The mission statement of Tootsie Roll Industries emphasizes the importance of quality and creativity in their products while ensuring customer satisfaction and community engagement.
Financial Performance
For the third quarter of 2024, the company reported net product sales of $223,891 thousand, a decrease from $248,336 thousand in the third quarter of 2023, representing a decline of 9.8%. In nine months, net product sales were $524,174 thousand, down 7.7% from $567,884 thousand in the same period of 2023.
| Period | Net Product Sales (in thousands) | % Change |
|---|---|---|
| Q3 2024 | $223,891 | -9.8% |
| Q3 2023 | $248,336 | N/A |
| 9 Months 2024 | $524,174 | -7.7% |
| 9 Months 2023 | $567,884 | N/A |
Earnings and Expenses
Tootsie Roll Industries reported earnings from operations of $35,244 thousand for the third quarter of 2024, a decrease from $45,900 thousand in the same period of 2023. For the nine months ended September 30, 2024, earnings from operations were $61,789 thousand compared to $73,449 thousand in 2023.
| Period | Earnings from Operations (in thousands) |
|---|---|
| Q3 2024 | $35,244 |
| Q3 2023 | $45,900 |
| 9 Months 2024 | $61,789 |
| 9 Months 2023 | $73,449 |
Cost of Goods Sold
The product cost of goods sold was $148,266 thousand for the third quarter of 2024, down from $164,163 thousand in the prior year. For the nine months, the cost decreased to $350,730 thousand from $382,644 thousand.
| Period | Cost of Goods Sold (in thousands) |
|---|---|
| Q3 2024 | $148,266 |
| Q3 2023 | $164,163 |
| 9 Months 2024 | $350,730 |
| 9 Months 2023 | $382,644 |
Net Earnings
Net earnings attributable to Tootsie Roll Industries for the third quarter of 2024 were $32,844 thousand, compared to $34,382 thousand in the third quarter of 2023. For nine months, net earnings increased to $64,318 thousand from $62,509 thousand.
| Period | Net Earnings (in thousands) |
|---|---|
| Q3 2024 | $32,844 |
| Q3 2023 | $34,382 |
| 9 Months 2024 | $64,318 |
| 9 Months 2023 | $62,509 |
Investment and Capital Expenditures
Capital expenditures for the nine months ended September 30, 2024, were $13,911 thousand compared to $19,458 thousand in the prior year. The company is evaluating a plant expansion with estimated costs between $70,000 thousand to $80,000 thousand.
| Year | Capital Expenditures (in thousands) |
|---|---|
| 2024 | $13,911 |
| 2023 | $19,458 |
How Tootsie Roll Industries, Inc. (TR) Works
Financial Performance Overview
As of September 30, 2024, Tootsie Roll Industries, Inc. reported net product sales of $223,891 thousand for the third quarter, a decrease from $248,336 thousand in the same quarter of 2023. For the nine months ended September 30, 2024, net product sales totaled $524,174 thousand, down from $567,884 thousand in 2023.
Revenue Breakdown
| Period | Net Product Sales (in $000) | Rental and Royalty Revenue (in $000) | Total Revenue (in $000) |
|---|---|---|---|
| Q3 2024 | 223,891 | 2,043 | 225,934 |
| Q3 2023 | 248,336 | 1,516 | 249,852 |
| 9 Months 2024 | 524,174 | 5,671 | 529,845 |
| 9 Months 2023 | 567,884 | 4,205 | 572,089 |
Cost of Goods Sold
The product cost of goods sold (COGS) for the third quarter of 2024 was $148,266 thousand, compared to $164,163 thousand in the third quarter of 2023. For the nine months ended September 30, 2024, COGS was $350,730 thousand, down from $382,644 thousand in the prior year.
Earnings from Operations
Earnings from operations for the third quarter 2024 were $35,244 thousand, a decrease from $45,900 thousand in the same quarter of 2023. For the nine months ended September 30, 2024, earnings from operations were $61,789 thousand compared to $73,449 thousand in 2023.
Net Earnings
Net earnings attributable to Tootsie Roll Industries, Inc. for Q3 2024 were $32,844 thousand, a decline from $34,382 thousand in Q3 2023. For the nine months of 2024, net earnings were $64,318 thousand, compared to $62,509 thousand in the prior year.
Share Performance
The earnings per share (EPS) for Q3 2024 were $0.46, down from $0.48 in Q3 2023. The EPS for the nine months ended September 30, 2024, was $0.90, an increase from $0.87 in the previous year.
Dividends
Tootsie Roll Industries declared dividends of $0.09 per share for both Q3 2024 and Q3 2023. Total cash dividends paid in the nine months of 2024 were $19,062 thousand, compared to $18,825 thousand in 2023.
Balance Sheet Highlights
As of September 30, 2024, the current ratio stood at 3.6, consistent with the ratio reported at December 31, 2023. Net working capital was $247,685 thousand, an increase from $245,763 thousand at year-end 2023.
Cash Flow Analysis
Net cash provided by operating activities for the nine months ending September 30, 2024, was $70,102 thousand compared to $39,606 thousand for the same period in 2023. Cash flows used in investing activities totaled ($32,176) thousand in 2024, while financing activities included share purchases of $2,196 thousand.
Comprehensive Income
Total comprehensive earnings attributable to Tootsie Roll Industries, Inc. for Q3 2024 were $37,382 thousand, compared to $35,862 thousand in Q3 2023. For the nine months ended September 30, 2024, comprehensive earnings were $68,195 thousand, slightly up from $67,460 thousand in 2023.
Market Challenges
The company has faced challenges in maintaining sales volume due to increased consumer resistance to price hikes, which were necessary to restore margins. Domestic sales represented 91.6% of total consolidated net product sales for Q3 2024.
How Tootsie Roll Industries, Inc. (TR) Makes Money
Revenue Streams
Tootsie Roll Industries generates revenue primarily through the sale of confectionery products. In the third quarter of 2024, the company reported net product sales of $223,891,000, a decrease from $248,336,000 in the same quarter of the previous year. For the nine months ending September 30, 2024, net product sales totaled $524,174,000, down from $567,884,000 in the prior year.
| Period | Net Product Sales | Change (%) |
|---|---|---|
| Q3 2024 | $223,891,000 | -9.8% |
| Q3 2023 | $248,336,000 | |
| 9M 2024 | $524,174,000 | -7.7% |
| 9M 2023 | $567,884,000 |
Cost of Goods Sold (COGS)
The cost of goods sold (COGS) for Tootsie Roll Industries was $148,266,000 in the third quarter of 2024, compared to $164,163,000 in the same quarter of 2023. For the nine months ended September 30, 2024, the COGS was $350,730,000, down from $382,644,000 in the previous year. This decrease reflects a more favorable cost structure due to operational efficiencies.
| Period | COGS | Change (%) |
|---|---|---|
| Q3 2024 | $148,266,000 | -9.7% |
| Q3 2023 | $164,163,000 | |
| 9M 2024 | $350,730,000 | -8.4% |
| 9M 2023 | $382,644,000 |
Gross and Operating Margins
The gross margin for the third quarter of 2024 was $75,625,000, down from $84,173,000 in the same period of 2023. The gross margin for the nine months ended September 30, 2024, was $177,572,000, compared to $188,105,000 in the prior year. The operating earnings for Q3 2024 were $35,244,000, while the nine-month figure was $61,789,000, both showing declines from the previous year.
| Period | Gross Margin | Operating Earnings |
|---|---|---|
| Q3 2024 | $75,625,000 | $35,244,000 |
| Q3 2023 | $84,173,000 | $45,900,000 |
| 9M 2024 | $177,572,000 | $61,789,000 |
| 9M 2023 | $188,105,000 | $73,449,000 |
Other Income Sources
Tootsie Roll Industries also generates income through rental and royalty revenues, which amounted to $2,043,000 in Q3 2024, up from $1,516,000 in Q3 2023. For the nine-month period, these revenues increased to $5,671,000 from $4,205,000.
| Period | Rental and Royalty Revenue |
|---|---|
| Q3 2024 | $2,043,000 |
| Q3 2023 | $1,516,000 |
| 9M 2024 | $5,671,000 |
| 9M 2023 | $4,205,000 |
Operating Expenses
Selling, marketing, and administrative expenses were $41,825,000 in Q3 2024, up from $39,300,000 in Q3 2023. For the nine-month period, these expenses rose to $115,783,000 from $114,656,000. The increase in operating expenses can be attributed to higher fixed costs associated with marketing and selling operations.
| Period | Selling, Marketing, and Administrative Expenses |
|---|---|
| Q3 2024 | $41,825,000 |
| Q3 2023 | $39,300,000 |
| 9M 2024 | $115,783,000 |
| 9M 2023 | $114,656,000 |
Net Earnings
Net earnings for Tootsie Roll Industries in Q3 2024 were $32,833,000, down from $34,377,000 in Q3 2023. For the nine months, net earnings increased to $64,302,000 from $62,491,000, reflecting overall operational performance despite lower sales.
| Period | Net Earnings |
|---|---|
| Q3 2024 | $32,833,000 |
| Q3 2023 | $34,377,000 |
| 9M 2024 | $64,302,000 |
| 9M 2023 | $62,491,000 |
Shareholder Returns
In terms of shareholder returns, Tootsie Roll Industries paid dividends of $0.09 per share in Q3 2024, consistent with Q3 2023. Year-to-date dividends were $0.27 per share for both periods.
| Period | Dividends per Share |
|---|---|
| Q3 2024 | $0.09 |
| Q3 2023 | $0.09 |
| 9M 2024 | $0.27 |
| 9M 2023 | $0.27 |
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Updated on 16 Nov 2024
Resources:
- Tootsie Roll Industries, Inc. (TR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Tootsie Roll Industries, Inc. (TR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Tootsie Roll Industries, Inc. (TR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.