Tootsie Roll Industries Inc 2025年度报告

2025 Corporate Profile Charms Blow Pops, Caramel Apple Pops, Child’s Play,Andes, Cella’s, Junior Mints, Charleston Chew, Dots,Dubble Bubble, Fluffy Stuff, and Cry Baby. Tootsie Roll Industries, Inc. has been engaged in themanufacture and sale of confectionery products forover 125 years. Our products are primarily sold underthe familiar brand names: Tootsie Roll, Tootsie Pops, Corporate Principles We believe that the differences among companies areattributable to the caliber of their people, and thereforewe strive to attract and retain superior people acrossall functions. We invest in the latest and most productive equipmentto deliver the best quality product to our customers atthe lowest cost. We seek to outsource functions where appropriate andto vertically integrate operations where it is financiallyadvantageous. We believe that an open, family atmosphere at work,combined with professional management, fosterscooperation and enables each individual to maximizehis or her contribution to the Company and realize thecorresponding rewards. We view our well known brands as prized assets to beaggressively advertised and promoted to each newgeneration of consumers. We do not jeopardize long-term growth for immediate,short-term results. We conduct business with the highest ethicalstandards and integrity which are codified in theCompany’s “Code of Business Conduct and Ethics.” We maintain a conservative financial posture in thedeployment and management of our assets. We run a trim operation and continually strive toeliminate waste, minimize cost and implementperformance improvements. Financial Highlights To Our Shareholders Karen G. Mills,President Ellen R. Gordon, Chairman andChief Executive Officer Net product sales in 2025 were $725 million, an increase of $9 million or 1% overnet product sales of $716 million in 2024. Net earnings grew to a record $100.1million from $86.8 million in the previous year, an increase of $13.3 million or 15%.Earnings per share were $1.37 up 16% from $1.18 in 2024 due to both higher earn-ings and from fewer shares outstanding because of ongoing share repurchases. Successful marketing and sales programs contributed to higher sales in 2025. Likemany CPG companies, we have implemented a series of price increases in recentyears to offset higher costs for ingredients, packaging materials, labor and benefits.While these price increases are essential to prevent margin erosion, we do facesome challenges as customers and consumers have become more resistant tohigher prices. These headwinds had some adverse effect on sales in 2025. 2025 earnings benefited from increased investment income from the Company’smarketable securities portfolio, including a favorable adjustment to record additionalbond accretion not previously reported on certain bonds purchased at a discount.In addition, part of the increase over 2024 earnings relates to the write-off of an $11deferred tax asset in the prior year. A key attribute of our venerable brands is their value orientation. We continueto monitor our input costs as well as pricing in the industry, mindful of the effectsand limits on passing these higher costs on to our customers and ultimately to theconsumers of our products. In order to maintain the value positioning of our prod-uct line, we strive to mitigate costs and maximize efficiency where we can withoutjeopardizing the long-term strength of the Company and its brands. We deem itessential to be a low cost producer and actively pursue investments in the latestequipment and technology to keep us so. In this regard, capital expenditures were$34 million in 2025. Some of the projects undertaken in 2025 will serve to meet the growing demandin certain product lines while other projects were directed toward upgrading plantinfrastructure. In all cases we look for the latest and most efficient equipmentavailable. Confectionery manufacturing in our highly automated plants is complexand today’s food safety standards are rigorous.We are fortunate to have sufficientfunds that enable us to maintain our manufacturing facilities in peak condition andmeet these demanding food safety standards. In addition to capital improvements, we continue to seek inno-vative ways to keep our costs as low as possible. Competitivebidding, selective hedging and leveraging our high volume ofingredient and packaging purchases are some of the means weuse to achieve this. We also focus on controlling energy costsand other overhead expenses, which can be substantial in ourhighly automated environment. In 2025, we were honored by alocal utility as a multi-year recipient of the “Energy Excellence”award in recognition of our ongoing commitment to energyefficiency and participation their Strategic Energy ManagementProgram. During 2025, we again paid cash dividends of 36 cents per shareand distributed a 3% stock dividend. This was the eighty-thirdconsecutive year the Company has paid cash dividends and thesixty-first consecut