Tootsie Roll Industries Inc 10-Q for FY2025 Q2

Tootsie Roll Industries Inc (TR)

10-Q 2025-08-08 For: 2025-06-30

Added on April 07, 2026

About this 10-Q

Tootsie Roll Industries Inc filed this 10-Q on August 8, 2025, covering the quarter ended June 30, 2025 (FY2025 Q2).

Headline figures

Quarter ended June 30, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $155.09M; up 2.9% from $150.74M a year earlier
Net income: $17.54M; up 12.2% from net income of $15.64M a year earlier

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Virginia		22-1318955
(State of Incorporation)		(I.R.S. Employer Identification No.)


7401 South Cicero Avenue, Chicago, Illinois		60629
(Address of Principal Executive Offices)		(Zip Code)


Title of each class:	Trading Symbol	Name of each exchange on which registered:
Common Stock, par value $0.694 per share	TR	New York Stock Exchange


Class		Outstanding

Common Stock, $0.694 par value		41,807,521
Class B Common Stock, $0.694 par value		31,179,109


		Page No.

Part I —	Financial Information

Item 1.	Financial Statements꞉

	Condensed Consolidated Statements of Financial Position	3-4

	Condensed Consolidated Statements of Earnings and Retained Earnings	5

	Condensed Consolidated Statements of Comprehensive Earnings	6

	Condensed Consolidated Statements of Cash Flows	7

	Notes to Condensed Consolidated Financial Statements	8-16

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17-23

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	23

Item 4.	Controls and Procedures	23

Part II —	Other Information

Item 1A.	Risk Factors	24

Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	24

Item 6.	Exhibits	25

Signatures		25



	June 30, 2025		December 31, 2024		June 30, 2024

ASSETS

CURRENT ASSETS:
Cash and cash equivalents	$	120,521	$	138,841	$	45,623
Restricted cash		400		352		364
Investments		50,010		55,789		85,548
Accounts receivable trade, less allowances of $2,593, $2,184 and $2,494		48,698		43,811		45,565
Other receivables		6,845		6,832		7,049
Inventories:
Finished goods and work-in-process		81,838		43,603		84,410
Raw materials and supplies		45,704		34,022		44,889
Prepaid expenses		10,750		10,355		10,429
Total current assets		364,766		333,605		323,877

PROPERTY, PLANT AND EQUIPMENT, at cost:
Land		21,783		21,710		21,669
Buildings		148,991		148,778		144,802
Machinery and equipment		500,922		499,210		484,409
Construction in progress		17,942		6,820		18,803
Operating lease right-of-use assets		5,554		6,043		6,607
		695,192		682,561		676,290
Less - accumulated depreciation		472,314		462,758		455,555
Net property, plant and equipment		222,878		219,803		220,735

OTHER ASSETS:
Goodwill		73,237		73,237		73,237
Trademarks		175,024		175,024		175,024
Investments		333,626		332,338		292,723
Prepaid expenses and other assets		10,248		11,633		15,474
Deferred income taxes		1,677		1,541		1,531
Total other assets		593,812		593,773		557,989
Total assets	$	1,181,456	$	1,147,181	$	1,102,601



	Quarter Ended				Year to Date Ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024

Net product sales	$	153,190	$	148,819	$	299,711	$	300,283
Rental and royalty revenue		1,898		1,917		3,832		3,628
Total revenue		155,088		150,736		303,543		303,911
Product cost of goods sold		98,127		99,732		193,627		202,464
Rental and royalty cost		478		529		983		944
Total costs		98,605		100,261		194,610		203,408
Product gross margin		55,063		49,087		106,084		97,819
Rental and royalty gross margin		1,420		1,388		2,849		2,684
Total gross margin		56,483		50,475		108,933		100,503
Selling, marketing and administrative expenses		44,362		35,040		73,752		73,958
Earnings from operations		12,121		15,435		35,181		26,545
Other (loss) income, net		14,072		4,900		14,021		13,932
Earnings before income taxes		26,193		20,335		49,202		40,477
Provision for income taxes		8,663		4,701		13,631		9,008
Net earnings		17,530		15,634		35,571		31,469
Less: net (loss) income attributable to noncontrolling interests		(14)		(6)		(31)		(5)
Net earnings attributable to Tootsie Roll Industries, Inc.	$	17,544	$	15,640	$	35,602	$	31,474

Net earnings attributable to Tootsie Roll Industries, Inc. per share	$	0.24	$	0.21	$	0.49	$	0.43
Dividends per share *	$	0.09	$	0.09	$	0.18	$	0.18

Average number of shares outstanding		72,879		73,536		72,923		73,536

Retained earnings at beginning of period	$	3,155	$	6,147	$	57,902	$	62,949
Net earnings attributable to Tootsie Roll Industries, Inc.		17,544		15,640		35,602		31,474
Cash dividends		(6,559)		(6,428)		(12,928)		(12,669)
Stock dividends		—		—		(66,436)		(66,395)
Retained earnings at end of period	$	14,140	$	15,359	$	14,140	$	15,359


										Capital in
				Class B						Excess
	Common Stock			Common Stock			Treasury Stock			of Par
	Shares	Amount		Shares	Amount		Shares	Amount		Value
	(000’s)			(000’s)			(000’s)
Balance at March 31,2025	41,796	$	29,025	31,191	$	21,660	108	$	(1,992)	$	847,308
Issuance of 3% stock dividend	—		—	—		—	—		—		—
Conversion of Class B common shares to common shares	12		8	(12)		(8)	—		—		—
Purchase and retirement of common shares and other	—		—	—		—	—		—		—
Balance at June 30, 2025	41,808	$	29,033	31,179	$	21,652	108	$	(1,992)	$	847,308

Balance at March 31,2024	41,211	$	28,619	30,311	$	21,049	105	$	(1,992)	$	802,253
Issuance of 3% stock dividend	—		—	—		—	—		—		—
Conversion of Class B common shares to common shares	2		1	(2)		(1)	—		—		—
Purchase and retirement of common shares and other	—		—	—		—	—		—		—
Balance at June 30, 2024	41,213	$	28,620	30,309	$	21,048	105	$	(1,992)	$	802,253

Balance at December 31, 2024	40,789	$	28,325	30,286	$	21,032	105	$	(1,992)	$	788,894
Issuance of 3% stock dividend	1,213		842	908		630	3		—		64,816
Conversion of Class B common shares to common shares	15		10	(15)		(10)	—		—		—
Purchase and retirement of common shares and other	(209)		(144)	—		—	—		—		(6,402)
Balance at June 30, 2025	41,808	$	29,033	31,179	$	21,652	108	$	(1,992)	$	847,308

Balance at December 31, 2023	39,999	$	27,777	29,445	$	20,448	102	$	(1,992)	$	737,453
Issuance of 3% stock dividend	1,196		830	882		613	3		—		64,800
Conversion of Class B common shares to common shares	18		13	(18)		(13)	—		—		—
Purchase and retirement of common shares and other	—		—	—		—	—		—		—
Balance at June 30, 2024	41,213	$	28,620	30,309	$	21,048	105	$	(1,992)	$	802,253



	Estimated Fair Value June 30, 2025
	Total		Input Levels Used
	Fair Value		Level 1		Level 2		Level 3
Cash and cash equivalents	$	120,521	$	120,521	$	—	$	—
Available for sale securities		271,627		4,143		267,484		—
Foreign currency derivatives		239		—		239		—
Commodity derivatives		(630)		(630)		—		—
Trading securities		112,009		95,499		16,510		—
Total assets measured at fair value	$	503,766	$	219,533	$	284,233	$	—


	Estimated Fair Value December 31, 2024
		Total	Input Levels Used
		Fair Value		Level 1		Level 2		Level 3
Cash and cash equivalents	$	138,841	$	138,841	$	—	$	—
Available for sale securities		283,060		4,102		278,958		—
Foreign currency derivatives		(818)		—		(818)		—
Commodity derivatives		(2,166)		(2,166)		—		—
Trading securities		105,067		86,925		18,142		—
Total assets measured at fair value	$	523,984	$	227,702	$	296,282	$	—


	Estimated Fair Value June 30, 2024
		Total	Input Levels Used
		Fair Value		Level 1		Level 2		Level 3
Cash and cash equivalents	$	45,623	$	45,623	$	—	$	—
Available for sale securities		279,543		4,049		275,494		—
Foreign currency derivatives		(43)		—		(43)		—
Commodity derivatives		(1,487)		(1,487)		—		—
Trading securities		98,728		81,058		17,670		—
Total assets measured at fair value	$	422,364	$	129,243	$	293,121	$	—



	June 30, 2025
	Notional
	Amounts		Assets		Liabilities
Derivatives designated as hedging instruments:
Foreign currency derivatives	$	13,106	$	239	$	-
Commodity derivatives		12,527		85		(715)
Total derivatives			$	324	$	(715)

	December 31, 2024
	Notional
	Amounts		Assets		Liabilities
Derivatives designated as hedging instruments:
Foreign currency derivatives	$	26,129	$	—	$	(818)
Commodity derivatives		20,959		39		(2,205)
Total derivatives			$	39	$	(3,023)

	June 30, 2024
	Notional
	Amounts		Assets		Liabilities
Derivatives designated as hedging instruments:
Foreign currency derivatives	$	5,168	$	-	$	(43)
Commodity derivatives		22,055		9		(1,496)
Total derivatives			$	9	$	(1,539)


	For Quarter Ended June 30, 2025
					Gain (Loss)
			Gain (Loss)		on Amount Excluded
	Gain (Loss)		Reclassified from		from Effectiveness
	Recognized		Accumulated OCI		Testing Recognized
	in OCI		into Earnings		in Earnings

Foreign currency derivatives	$	867	$	8	$	—
Commodity derivatives		(1,236)		(829)		—
Total	$	(369)	$	(821)	$	—

	For Quarter Ended June 30, 2024
					Gain (Loss)
			Gain (Loss)		on Amount Excluded
	Gain (Loss)		Reclassified from		from Effectiveness
	Recognized		Accumulated OCI		Testing Recognized
	in OCI		into Earnings		in Earnings

Foreign currency derivatives	$	(114)	$	(100)	$	—
Commodity derivatives		(1,606)		(678)		—
Total	$	(1,720)	$	(778)	$	—

	For Year to Date Ended June 30, 2025
					Gain (Loss)
			Gain (Loss)		on Amount Excluded
	Gain (Loss)		Reclassified from		from Effectiveness
	Recognized		Accumulated OCI		Testing Recognized
	in OCI		into Earnings		in Earnings

Foreign currency derivatives	$	828	$	(229)	$	—
Commodity derivatives		(184)		(1,720)		—
Total	$	644	$	(1,949)	$	—

	For Year to Date Ended June 30, 2024
					Gain (Loss)
			Gain (Loss)		on Amount Excluded
	Gain (Loss)		Reclassified from		from Effectiveness
	Recognized		Accumulated OCI		Testing Recognized
	in OCI		into Earnings		in Earnings

Foreign currency derivatives	$	(472)	$	(126)	$	—
Commodity derivatives		(48)		(1,087)		—
Total	$	(520)	$	(1,213)	$	—


											Accumulated
	Foreign				Foreign				Postretirement		Other
	Currency				Currency		Commodity		and Pension		Comprehensive
	Translation		Investments		Derivatives		Derivatives		Benefits		Earnings (Loss)
Balance at March 31,2025	$	(24,751)	$	3,295	$	(472)	$	(169)	$	2,293	$	(19,804)
Other comprehensive earnings (loss) before reclassifications		1,346		1,287		658		(937)		—		2,354
Reclassifications from accumulated other comprehensive loss		—		(30)		(6)		629		(157)		436
Other comprehensive earnings (loss) net of tax		1,346		1,257		652		(308)		(157)		2,790
Balance at June 30, 2025	$	(23,405)	$	4,552	$	180	$	(477)	$	2,136	$	(17,014)

Balance at March 31,2024	$	(20,730)	$	(2,240)	$	(23)	$	(425)	$	1,762	$	(21,656)
Other comprehensive earnings (loss) before reclassifications		(2,009)		627		(86)		(1,214)		—		(2,682)
Reclassifications from accumulated other comprehensive loss		—		(2)		75		512		(121)		464
Other comprehensive earnings (loss) net of tax		(2,009)		625		(11)		(702)		(121)		(2,218)
Balance at June 30, 2024	$	(22,739)	$	(1,615)	$	(34)	$	(1,127)	$	1,641	$	(23,874)

Balance at December 31, 2024	$	(24,787)	$	1,184	$	(621)	$	(1,642)	$	2,448	$	(23,418)
Other comprehensive earnings (loss) before reclassifications		1,382		3,414		627		(139)		—		5,284
Reclassifications from accumulated other comprehensive loss		—		(46)		174		1,304		(312)		1,120
Other comprehensive earnings (loss) net of tax		1,382		3,368		801		1,165		(312)		6,404
Balance at June 30, 2025	$	(23,405)	$	4,552	$	180	$	(477)	$	2,136	$	(17,014)

Balance at December 31, 2023	$	(21,050)	$	(2,359)	$	228	$	(1,915)	$	1,883	$	(23,213)
Other comprehensive earnings (loss) before reclassifications		(1,689)		746		(357)		(35)		—		(1,335)
Reclassifications from accumulated other comprehensive loss		—		(2)		95		823		(242)		674
Other comprehensive earnings (loss) net of tax		(1,689)		744		(262)		788		(242)		(661)
Balance at June 30, 2024	$	(22,739)	$	(1,615)	$	(34)	$	(1,127)	$	1,641	$	(23,874)


Details about Accumulated Other	Quarter Ended				Year to Date Ended				Location of (Gain) Loss
Comprehensive Income Components	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024		Recognized in Earnings
Investments	$	(40)	$	(2)	$	(61)	$	(2)	Other income, net
Foreign currency derivatives		(8)		100		229		126	Other income, net
Commodity derivatives		829		678		1,720		1,087	Product cost of goods sold
Postretirement and pension benefits		(205)		(159)		(410)		(319)	Other income, net
Total before tax		576		617		1,478		892
Tax (expense) benefit		(140)		(153)		(358)		(218)
Net of tax	$	436	$	464	$	1,120	$	674


					(d) Approximate Dollar
	(a) Total			(c) Total Number of Shares	Value of Shares that
	Number of	(b) Average		Purchased as Part of	May Yet Be Purchased
	Shares	Price Paid per		Publicly Announced Plans	Under the Plans
Period	Purchased	Share		Or Programs	or Programs

Apr 1 to Apr 30	—	$	—	Not Applicable	Not Applicable

May 1 to May 31	—		—	Not Applicable	Not Applicable

Jun 1 to Jun 30	—		—	Not Applicable	Not Applicable

Total	—	$	—	Not Applicable	Not Applicable


		TOOTSIE ROLL INDUSTRIES, INC.

Date:	August 8, 2025	BY:	/s/ ELLEN R. GORDON

			Ellen R. Gordon
			Chairman and Chief
			Executive Officer

Date:	August 8, 2025	BY:	/s/ G. HOWARD EMBER, JR.

			G. Howard Ember, Jr.
			Vice President Finance and
			Chief Financial Officer



	June 30, 2025		December 31, 2024		June 30, 2024

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:
Accounts payable	$	21,158	$	13,397	$	20,009
Bank loans		1,018		924		1,046
Dividends payable		6,569		6,403		6,437
Accrued liabilities		60,840		63,607		57,206
Postretirement health care benefits		595		595		665
Operating lease liabilities		1,317		1,374		1,400
Income taxes payable		—		636		—
Deferred compensation		—		350		—
Total current liabilities		91,497		87,286		86,763

NONCURRENT LIABILITIES:
Deferred income taxes		56,932		54,537		45,277
Postretirement health care benefits		8,645		8,701		9,638
Industrial development bonds		7,500		7,500		7,500
Liability for uncertain tax positions		2,564		2,564		2,981
Operating lease liabilities		4,584		4,992		5,499
Deferred compensation and other liabilities		116,972		111,192		103,849
Total noncurrent liabilities		197,197		189,486		174,744

TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS’ EQUITY:
Common stock, $0.694 par value - 120,000 shares authorized; 41,808, 40,789 and 41,213, respectively, issued		29,033		28,325		28,620
Class B common stock, $0.694 par value - 40,000 shares authorized; 31,179, 30,286 and 30,309, respectively, issued		21,652		21,032		21,048
Capital in excess of par value		847,308		788,894		802,253
Retained earnings		14,140		57,902		15,359
Accumulated other comprehensive loss		(17,014)		(23,418)		(23,874)
Treasury stock (at cost) - 108, 105 and 105 shares, respectively		(1,992)		(1,992)		(1,992)
Total Tootsie Roll Industries, Inc. shareholders’ equity		893,127		870,743		841,414
Noncontrolling interests		(365)		(334)		(320)
Total equity		892,762		870,409		841,094
Total liabilities and shareholders’ equity	$	1,181,456	$	1,147,181	$	1,102,601



	Year to Date Ended
	June 30, 2025		June 30, 2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	35,571	$	31,469
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation		9,185		9,162
Deferred income taxes		797		(486)
Amortization of marketable security premiums		157		1,103
Changes in operating assets and liabilities:
Accounts receivable		(4,477)		9,438
Other receivables		583		1,823
Inventories		(48,821)		(35,338)
Prepaid expenses and other assets		2,916		(657)
Accounts payable and accrued liabilities		3,467		798
Income taxes payable		(2,387)		(8,643)
Postretirement health care benefits		(467)		(334)
Deferred compensation and other liabilities		(1,459)		442
Net cash (used in) provided by operating activities		(4,935)		8,777
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(10,363)		(8,421)
Purchases of trading securities		(1,756)		(1,587)
Sales of trading securities		2,070		442
Purchase of available for sale securities		(13,110)		(55,131)
Sale and maturity of available for sale securities		28,829		38,779
Net cash provided by (used in) investing activities		5,670		(25,918)
CASH FLOWS FROM FINANCING ACTIVITIES:
Shares purchased and retired		(6,483)		—
Dividends paid in cash		(12,928)		(12,634)
Proceeds from bank loans		1,663		1,039
Repayment of bank loans		(1,689)		(1,051)
Net cash used in financing activities		(19,437)		(12,646)
Effect of exchange rate changes on cash		430		(516)
Decrease in cash and cash equivalents		(18,272)		(30,303)
Cash, cash equivalents and restricted cash at beginning of year		139,193		76,290
Cash, cash equivalents and restricted cash at end of quarter	$	120,921	$	45,987

Supplemental cash flow information:
Income taxes paid, net	$	15,975	$	17,728


	Date:	August 8, 2025

	By:	/s/ELLEN R. GORDON
		Ellen R. Gordon
		Chairman and Chief
		Executive Officer


	Date:	August 8, 2025

	By:	/s/G. HOWARD EMBER, JR.
		G. Howard Ember, Jr.
		Vice President Finance and
		Chief Financial Officer


Dated:	August 8, 2025	/s/ELLEN R. GORDON
		Ellen R. Gordon
		Chairman and Chief
		Executive Officer


Dated:	August 8, 2025	/s/G. HOWARD EMBER, JR.
		G. Howard Ember, Jr.
		Vice President Finance and
		Chief Financial Officer