Quarterly ResultJul 23, 2026, 11:06 AM
Tootsie Roll Q2 Net Sales $151.9M (-1%); EPS $0.18 (-22%)
AI Summary
Tootsie Roll Industries, Inc. reported a 1% decrease in second quarter 2026 net sales to $151.9 million and a 24% drop in net earnings to $13.3 million, with EPS at $0.18. First half 2026 net sales saw a slight 1% increase to $301.4 million, but net earnings declined 13% to $31.0 million. The company attributed the adverse results to sales timing shifts, increased trade promotions, significantly higher cocoa and chocolate costs, elevated energy expenses, and unfavorable international performance, though it anticipates lower cocoa costs in the latter half of 2026 and into 2027.
Key Highlights
- Q2 2026 net sales decreased 1% to $151.9 million from $153.2 million in Q2 2025.
- Q2 2026 net earnings fell 24% to $13.3 million from $17.5 million in Q2 2025.
- Q2 2026 net earnings per share were $0.18, down 22% from $0.23 in Q2 2025.
- First half 2026 net sales increased 1% to $301.4 million from $299.7 million in H1 2025.
- First half 2026 net earnings decreased 13% to $31.0 million from $35.6 million in H1 2025.
- Results were adversely impacted by sales timing, higher trade promotions, and significantly higher cocoa and chocolate unit costs.
- Elevated energy costs, unfavorable international results, and increased marketing expenses also affected performance.
- The company expects lower cocoa and chocolate costs in H2 2026 and 2027 and continues investments in manufacturing.
Price Impact
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