Tootsie Roll Industries reported first-quarter 2026 net sales of $149.5 million, up $3.0 million, or 2%, from $146.5 million a year earlier.
Net earnings slipped to $17.7 million from $18.1 million in the first quarter of 2025, a decline of $397,000. Earnings per share held steady at $0.24 in both periods.
The company said the sales gain came from stronger marketing and sales programs, along with trade promotions and other marketing support that helped drive distribution. But gross profit margins were pressured by sharply higher cocoa and chocolate unit costs versus the prior-year quarter. It also cited unfavorable international results and increased trade promotions as drags on results.
Investment income from marketable securities helped offset some of the pressure, but a higher effective tax rate weighed on earnings. The company’s tax rate rose to 25.1% from 21.6% a year earlier, a jump of 3.5 percentage points. Tootsie Roll said the increase was mainly tied to deferred compensation that will not be deductible for income taxes when paid later.
The company also said it expects lower cocoa and chocolate costs to begin showing up later in 2026 and into 2027 as commodity prices ease from their 2025 peaks. Following these announcements, the company's shares moved -0.24%, and are now trading at a price of $41.62. For more information, read the company's full 8-K submission here.
