Candy maker Tootsie Roll posts higher Q3 sales, warns of margin pressure from input costs

Overview

• Tootsie Roll Q3 2025 net sales rise 3% yr/yr, driven by successful marketing programs

• Q3 2025 net earnings increase 9% yr/yr, aided by higher investment income

• Higher input costs, especially cocoa, impact Tootsie Roll's profit margins in 2025

Outlook

• Company expects high cocoa and chocolate costs to continue into Q4 2025 and 2026

• Company remains cautious about tariff impacts on costs

• Tootsie Roll investing in manufacturing to meet new product demands

Result Drivers

• MARKETING SUCCESS - Successful marketing and sales programs, including pre-Halloween efforts, contributed to higher sales in Q3 2025

• HIGHER INPUT COSTS - Increased costs for cocoa and chocolate affected profit margins, with expectations of continued pressure into Q4 2025 and 2026

• INVESTMENT INCOME - Net earnings benefited from increased investment income and a favorable bond accretion adjustment

Key Details

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