Tootsie Roll Industries, Inc. reported a decrease in net sales and net earnings for the third quarter and nine months ended September 30, 2026, compared to the same periods in 2025. For the third quarter of 2026, net sales were $227,163,000, a decrease of $3,451,000 or 1%, compared to $230,614,000 in the prior year. Net earnings for the third quarter of 2026 were $23,216,000, down from $35,659,000 in the third quarter of 2025, resulting in a net earnings per share of $0.31, compared to $0.48 in the prior year.
For the nine months ended September 30, 2026, net sales were $528,594,000, a decrease of $1,731,000 from $530,325,000 in the first nine months of 2025. Net earnings for the nine months of 2026 were $54,224,000, compared to $71,261,000 in the prior year, with earnings per share of $0.72 versus $0.95 in 2025.
The company attributed the declines to several factors. The timing of sales, specifically seasonal Halloween sales occurring between the third and fourth quarters in 2026 rather than within the third quarter, negatively impacted results. Additionally, the company noted that higher levels of trade promotions, which are accounted for as a reduction in reported net sales, adversely affected reported figures. Gross margins were also pressured by higher unit costs for ingredients, primarily cocoa and chocolate, as well as packaging materials and labor. Elevated energy costs contributed to significant increases in freight and delivery expenses.
Management highlighted that cocoa and chocolate costs were more favorable in the third quarter of 2026 compared to the first half of the year, and they expect this trend to continue into the fourth quarter. The company also noted that third and nine-month results were adversely affected by approximately $1,300,000 and $2,500,000 in acquisition-related expenses, respectively, following the acquisition of a confectionery business comprising the Winis brand in Mexico on September 1, 2026. The company’s effective income tax rates were 25.6% for the third quarter of 2026 and 25.8% for the nine months ended September 30, 2026.
