Exhibit 99.1
TOOTSIE ROLL INDUSTRIES, INC. | |
| 7401 South Cicero Avenue |
| Chicago, IL 60629 |
| Phone 773/838-3400 |
| Fax 773/838-3534 |
PRESS RELEASE
| |
STOCK TRADED: NYSE | FOR IMMEDIATE RELEASE |
TICKER SYMBOL: TR | Tuesday, February 16, 2021 |
CHICAGO, ILLINOIS – February 16, 2021 - Ellen R. Gordon, Chairman, Tootsie Roll Industries, Inc. reported fourth quarter and twelve months 2020 net sales and net earnings.
Fourth quarter 2020 net sales were $127,866,000 compared to $134,663,000 in fourth quarter 2019, a decrease of $6,797,000, or 5%. Fourth quarter 2020 net earnings were $14,952,000 compared to $14,555,000 in fourth quarter 2019, and net earnings per share were $0.23 and $0.22 in fourth quarter 2020 and 2019, respectively, an increase of $0.01 or 5%.
Twelve months 2020 net sales were $467,427,000 compared to $523,616,000 in twelve months 2019, a decrease of $56,189,000, or 11%. Twelve months 2020 net earnings were $58,995,000 compared to $64,920,000 in twelve months 2019, and net earnings per share were $0.89 and $0.96 in twelve months 2020 and 2019, respectively, a decrease of $0.07 per share or 7%.
Mrs. Gordon said, “Fourth quarter sales were adversely impacted by the effects of the Covid-19 pandemic, which continues to curtail and limit access to certain channels of trade where the Company has historically sold its products. Response to this pandemic has resulted in the disruption and changes in lifestyles, shopping habits, daily work routines, and consumer behaviors, all of which have adversely affected planned consumer purchases of the Company’s products for “sharing” and “give away” occasions. Many of the Company’s products are consumed at group events, outings, and other gatherings which have been significantly curtailed or in some cases eliminated due to concern of possible infection or spreading of the Covid-19 virus. Impulse purchases of Company products at retail outlets have also been adversely affected by these changes in consumer behavior.
The above discussed sales decline and resulting lost profit margin had an adverse impact on net earnings in fourth quarter 2020. In addition, lower sales and production volumes had an unfavorable impact on plant manufacturing overhead costs and resulting gross profit margins because these costs are primarily fixed and recurring each year, and only partially decline with lower volumes. Certain cost and expense reductions, including Company operational changes and initiatives to reduce costs, did provide some benefit to fourth quarter 2020 results. Although unfavorable foreign exchange adversely affected fourth quarter 2020 results, a lower effective income tax rate contributed to the increase in net earnings in fourth quarter 2020 compared to fourth quarter 2019.
Twelve months 2020 sales, including pre-Halloween sales in third quarter 2020, were also adversely affected by the effects of the Covid-19 pandemic as discussed above. Twelve months 2020 net earnings were principally impacted by the same factors discussed above that affected fourth quarter 2020 results. Twelve months 2020 net earnings did benefit from more favorable foreign exchange and a lower effective tax rate.
