Tootsie Roll Q2 Net Sales Decline by 1%

By Hao Liu • Thursday, July 23 16:05 • Permanent Link

Tootsie Roll Industries said second-quarter 2026 net sales slipped to $151.9 million from $153.2 million a year earlier, a decline of $1.2 million, or 1%. Net earnings fell more sharply, dropping to $13.3 million from $17.5 million, down $4.2 million. Earnings per share declined to $0.18 from $0.23, a decrease of $0.05, or 22%.

For the first half of 2026, net sales rose slightly to $301.4 million from $299.7 million in the same period of 2025, an increase of $1.7 million, or 1%. But net earnings fell to $31.0 million from $35.6 million, a drop of $4.6 million. Earnings per share decreased to $0.41 from $0.47, down $0.06, or 13%.

The company pointed to a shift in the timing of seasonal sales between the second and third quarters, along with higher trade promotions and advertising, as factors weighing on reported sales. It also said second-quarter and first-half gross profit margins were pressured by significantly higher cocoa and chocolate unit costs, along with elevated energy costs that lifted freight and delivery expenses and increased resin-based packaging and other material costs.

Tootsie Roll also said unfavorable international results, higher marketing expenses, and increased professional fees contributed to the weaker performance. First-quarter 2026 net earnings benefited from higher investment income from marketable securities.

The company’s effective tax rate fell to 26.9% in the second quarter from 33.1% a year earlier, and to 25.9% for the first half from 27.7% in the prior-year period. Today the company's shares have moved -3.94% to a price of $37.865. Check out the company's full 8-K submission here.

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