Tootsie Roll Industries, Inc. (TR) SEC Filings & Earnings Calls

Input cost inflation (cocoa, packaging, energy) pressuring margins; freight costs expected to remain elevated through 2027.

“Third quarter and nine months 2026 gross margins were adversely affected by higher unit costs for ingredients, primarily cocoa and chocolate, and packaging materials.” · word for word

Tariff and trade policy uncertainty could impact costs and supply chain.

“Third quarter and nine months 2026 net earnings did benefit from some tariff refund recoveries.” · word for word

Seasonal sales timing shift (Halloween) creates volatility in quarterly comparisons.

“Third quarter and nine months 2026 were adversely impacted by the timing of sales, including seasonal Halloween sales, between third and fourth quarter 2026” · word for word

Multi-employer pension withdrawal liability

“the ultimate outcome could have a material adverse effect on the Company’s consolidated results of operations or cash flows in one or more future periods.” · word for word

Cocoa cost volatility

“second quarter and first half 2026 cost of goods sold and gross profit margins were adversely affected by significantly higher cocoa and chocolate unit costs” · word for word

Input cost inflation from cocoa and energy is compressing margins

“Second quarter and first half 2026 gross profit margins were adversely affected by significantly higher cocoa and chocolate unit costs” · word for word

Input Cost Inflation

“First quarter 2026 product cost of goods sold and gross profit margins were adversely affected by significantly higher unit costs for chocolate and cocoa.” · word for word

Multi-Employer Pension Liability

“Company has been advised that its withdrawal liability would have been $102,800...if it had withdrawn from the Plan during 2025” · word for word

International Operations Losses

“Spanish subsidiary incurred an operating loss of $1.1 in first quarter 2026 compared to an operating loss of $0.6 in first quarter 2025.”

Fuel Cost Pressure

“energy costs have recently increased, and we expect to incur higher freight and delivery unit costs in the future due to higher diesel costs and resulting fuel surcharges from our freight carriers.” · word for word

Significant cocoa and chocolate cost inflation pressuring gross margins; limited pricing power to pass through costs.

“First quarter 2026 gross profit margins were adversely affected by significantly higher cocoa and chocolate unit costs ... we are mindful of the effects and limits when passing on higher input costs to our customers” · word for word

Higher effective tax rate due to non-deductible deferred compensation reduces net earnings.

“The higher tax rate in first quarter 2026 principally reflects the adverse effect of certain deferred compensation that will not be deductible for income taxes when paid in future periods.” · word for word

Unfavorable international results and increased trade promotions negatively impacted earnings.

“First quarter results were also adversely affected by unfavorable international results as well as increased trade promotions.” · word for word

Controlled Company Governance

“The Company is a 'controlled company' under the NYSE listing standards since the Gordon family collectively holds more than 50% of the total voting power of the outstanding capital stock of the Company.” · word for word

CEO Age and Succession

“Ellen R. Gordon, 94, Chairman of the Board and Chief Executive Officer” · word for word

Concentrated Ownership

“Ellen R. Gordon ... Common 13,879,597 ... 33.4% ... Class B 15,345,921 ... 49.2%” · word for word

No Equity-Based Compensation

“None of the Company's employees receive stock options, restricted stock or other forms of equity-based compensation.” · word for word

Multi-employer pension plan withdrawal liability

“The Company has been advised that its withdrawal liability would have been $102,800 if it had withdrawn from the Plan during 2025” · word for word

Cocoa and chocolate cost inflation

“certain ingredients and packaging materials unit costs, particularly cocoa and chocolate, continued to increase in 2025.” · word for word

Tariff exposure on cross-border shipments and imported inputs

“We have estimated that our 2025 incremental cost of tariffs was approximately $3.7 million” · word for word

Customer concentration

“Our net product sales from Wal-Mart Stores, Inc. aggregated approximately 22.0%” · word for word

Spanish subsidiary losses

“The Company’s Spanish subsidiary (97% owned by the Company) incurred an operating loss of $2,244 in 2025” · word for word

Input cost inflation from cocoa and chocolate continues; cocoa prices remain above historical levels.

“Certain ingredients and packaging materials unit costs, particularly cocoa and chocolate, continued to increase in 2025.” · word for word

Tariff exposure of $3.7M in 2025; cocoa tariffs rescinded but other tariffs persist.

“We have estimated that our 2025 incremental cost of tariffs was approximately $3.7 million.” · word for word

Consumer price resistance may limit ability to pass through cost increases.

“Customers and consumers became more resistant to higher prices.” · word for word

Cocoa cost inflation

“Cocoa and chocolate prices continue at significantly elevated levels compared to historical prices in past years.” · word for word

Tariff exposure

“Management believes that current tariffs are estimated to have approximately $6,900 of adverse annual (12 months) effects on our consolidated earnings from operations.” · word for word

Multi-employer pension plan liability

“the ultimate outcome could have a material adverse effect on the Company’s consolidated results of operations or cash flows in one or more future periods.” · word for word