Tootsie Roll Industries Reports Q4 Net Profit of $29.4 Million
Tootsie Roll Industries, the popular candy maker, announced an increase in sales for the latest quarter. The company attributed the rise in sales to its decision to raise prices to offset higher expenses in ingredients, packaging materials, and manufacturing supplies.
For the fourth quarter, Tootsie Roll Industries reported a net profit of $29.4 million, equivalent to 42 cents per share. This is an improvement compared to the same period last year when the company recorded a net profit of $25.3 million, or 36 cents per share.
The total sales for the quarter increased by 3.8% to reach $195.4 million. This growth can be largely attributed to the company's strategy of increasing selling prices to absorb the impact of rising input costs. Despite this progress, Tootsie Roll Industries acknowledges that it has not yet fully restored its margins to their historical levels.
In a statement, Tootsie Roll Industries highlighted its long-term focus and commitment to meeting customer demands. The company plans to continue investing in its plant manufacturing operations to cater to evolving consumer and customer product needs.
Tootsie Roll Industries' efforts to navigate the challenges posed by higher expenses have shown promising results in this latest quarter. However, the candy maker remains determined to further improve its margins as it moves forward.
Analyst comment
Positive news. Tootsie Roll Industries’ sales rose in the latest quarter due to price increases. The company reported a net profit increase of $4.1 million. Although margins haven’t fully recovered, the company plans to invest in plant manufacturing operations to meet consumer demands. Market is expected to remain steady.
