Tootsie Roll Industries(US:TR)2025-10-23 15:00Financial Performance - Third quarter 2025 net sales were $230,614,000, an increase of $6,723,000 or 3% compared to $223,891,000 in third quarter 2024[3] - Third quarter 2025 net earnings were $35,659,000, up from $32,844,000 in third quarter 2024, with net earnings per share increasing by $0.04 or 9% to $0.49[3] - Nine months 2025 net sales reached $530,325,000, a 1% increase from $524,174,000 in nine months 2024[4] - Nine months 2025 net earnings were $71,261,000, compared to $64,318,000 in nine months 2024, with net earnings per share increasing by $0.11 or 13% to $0.98[4] Challenges - The company faced challenges in nine months 2025 as customers became more resistant to higher prices, impacting sales[5] - Higher input costs, particularly for cocoa and chocolate, have adversely affected gross profit margins in 2025[6][8] Profit Margins - Third quarter and nine months 2025 gross profit margins benefited from higher price realization and improvements in manufacturing efficiencies[7] Other Income and Tax Rates - Increased Other income, including a $3.4 million cumulative after-tax adjustment, contributed to net earnings in both third quarter and nine months 2025[9] - The effective income tax rates for third quarter 2025 and nine months 2025 were 26.7% and 27.2%, respectively, reflecting higher deferred compensation impacts[9] Investments - The company continues to invest in plant manufacturing operations to meet new product demands and improve operational efficiencies[11]