Tootsie Roll Industries(US:TR)2024-10-24 15:05Financial Performance - Third quarter 2024 net sales were $223,891,000, a decrease of 10% from $248,336,000 in third quarter 2023[1] - Third quarter 2024 net earnings were $32,844,000, down from $34,382,000 in the same period last year, with earnings per share decreasing by 4% to $0.46[1][2] - Nine months 2024 net sales totaled $524,174,000, an 8% decrease from $567,884,000 in nine months 2023[2] - Nine months 2024 net earnings increased to $64,318,000, up from $62,509,000 in the prior year, with earnings per share rising by 3% to $0.90[2][10] Profitability and Margins - Gross profit margins improved due to higher price realization and manufacturing efficiencies, despite lower sales volumes impacting overall results[3] - The company implemented price increases to recover margin declines, particularly due to rising cocoa and chocolate costs expected to affect margins in the upcoming quarters[4] Income and Taxation - Increased investment income and higher leasing revenue contributed positively to net earnings in both the third quarter and nine months of 2024[5] - The effective income tax rates were 22.6% for third quarter 2024, down from 23.9% in 2023, and 22.4% for nine months 2024, down from 24.1% in 2023[5] Shareholder Metrics - Average shares outstanding decreased to 71,379,000 in third quarter 2024 from 71,696,000 in 2023, contributing to higher earnings per share[9] Strategic Focus - The company continues to focus on long-term investments in manufacturing operations to meet consumer demands and improve operational efficiencies[5]