Tootsie Roll Industries(US:TR)2025-02-13 00:30Financial Performance - Fourth quarter 2024 net sales were $191,356,000, a decrease of 2% from $195,368,000 in fourth quarter 2023[3] - Fourth quarter 2024 net earnings were $22,509,000, down 22% from $29,403,000 in fourth quarter 2023, resulting in earnings per share of $0.32 compared to $0.41[3] - Twelve months 2024 net sales totaled $715,530,000, a decline of 6% from $763,252,000 in twelve months 2023[4] - Twelve months 2024 net earnings were $86,827,000, a decrease of 5% from $91,912,000 in twelve months 2023, with earnings per share of $1.22 compared to $1.28[4] Tax and Adjustments - The company wrote off $11,010,000 of deferred tax assets in fourth quarter 2024, impacting net earnings[5] - Adjusted for the tax asset write-off, fourth quarter 2024 net earnings would have increased by 14% year-over-year[5] Operational Efficiency - Gross profit margins improved due to higher price realization and manufacturing efficiencies, despite lower sales volumes[7] - The company is focused on long-term investments in manufacturing operations to enhance product quality and operational efficiencies[10] Market Outlook - The company anticipates higher cocoa and chocolate costs in 2025 due to expiring supply contracts and new contracts at elevated prices[8] Other Income - Increased investment income and leasing revenue contributed positively to net earnings in fourth quarter 2024[9]