Tootsie Roll Industries(US:TR)2024-02-20 16:00Sales and Earnings Growth - Fourth quarter 2023 net sales increased by $7.188 million or 4% to $195.368 million compared to $188.180 million in Q4 2022[3] - Fourth quarter 2023 net earnings rose by $4.059 million or 17% to $29.403 million compared to $25.344 million in Q4 2022[3] - Twelve months 2023 net sales increased by $81.812 million or 12% to $763.252 million compared to $681.440 million in 2022[4] - Twelve months 2023 net earnings rose by $15.975 million or 23% to $91.912 million compared to $75.937 million in 2022[4] Cost and Margin Impact - Higher input costs for ingredients, packaging materials, labor, and manufacturing supplies significantly impacted gross profit margins in 2023[6] - The company implemented price increases to offset higher input costs and restore margins, though margins have not yet returned to historical levels[8] Supply Chain and Operations - Supply chain improvements were achieved in 2023 and are expected to continue throughout 2024[9] - The company continues to invest in plant manufacturing operations to meet new consumer demands and improve operational efficiencies[11] Foreign Exchange and Tax Rates - Unfavorable foreign exchange rates negatively affected 2023 net earnings, partially offset by favorable investment income[10] - Effective income tax rates were 21.8% in Q4 2023 and 23.4% for the full year 2023[10]