On this page of StockholderLetter.com we present the latest annual shareholder letter from TOOTSIE ROLL INDUSTRIES INC — ticker symbol TR. Reading current and past TR letters to shareholders can bring important insights into the investment thesis.

 •  3/27/2025 Letter Continued (Full PDF)
 •  4/13/2023 TR Stockholder Letter
 •  3/25/2024 TR Stockholder Letter
 •  More "Food & Beverage" Category Stockholder Letters
 •  TR Benford's Law Stock Score = 82

TR Shareholder/Stockholder Letter Transcript:

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CLEAN
2024
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Corporate Profile
Tootsie Roll Industries, Inc. has been engaged in the
manufacture and sale of confectionery products for
over 125 years. Our products are primarily sold under
the familiar brand names: Tootsie Roll, Tootsie Roll Pops,
Caramel Apple Pops, Child   s Play, Charms, Blow Pop,
Blue Razz, Cella   s chocolate covered cherries, Dots,
Crows, Junior Mints, Junior Caramels, Charleston
Chew, Sugar Daddy, Sugar Babies, Andes, Fluffy Stuff
cotton candy, Dubble Bubble, Razzles, Cry Baby,
Nik-L-Nip and Tutsi (Mexico).
Board of Directors
Offices, Plants
Ellen R. Gordon
Chairman of the Board and
Chief Executive Officer
Executive Offices
Virginia L. Gordon
Private Investor
7401 South Cicero Avenue
Chicago, Illinois 60629
www.tootsie.com
Lana Jane Lewis-Brent(1)(2)
President, Paul Brent
Designer, Inc., an art
publishing, design and
licensing company
Plants/Warehouses
Michael A. Chodos(1)(2)
Principal, the Law Offices of
Michael Chodos
Illinois
Tennessee
Massachusetts
Wisconsin
Ontario, Canada
Mexico City, Mexico
Barcelona, Spain
Paula M. Wardynski(1)(2)
Former Senior Vice
President   Finance,
Twenty-First Century Fox
Foreign Sales Offices
Mexico City, Mexico
Ontario, Canada
Corporate Principles
We believe that the differences among companies are
attributable to the caliber of their people, and therefore
we strive to attract and retain superior people across
all functions.
We believe that an open, family atmosphere at work,
combined with professional management, fosters
cooperation and enables each individual to maximize
his or her contribution to the Company and realize the
corresponding rewards.
We do not jeopardize long-term growth for immediate,
short-term results.
We maintain a conservative financial posture in the
deployment and management of our assets.
We invest in the latest and most productive equipment
to deliver the best quality product to our customers at
the lowest cost.
We seek to outsource functions where appropriate and
to vertically integrate operations where it is financially
advantageous.
We view our well known brands as prized assets to be
aggressively advertised and promoted to each new
generation of consumers.
We conduct business with the highest ethical
standards and integrity which are codified in the
Company   s    Code of Business Conduct and Ethics.   
We run a trim operation and continually strive to
eliminate waste, minimize cost and implement
performance improvements.
(1)
Audit Committee
Barcelona, Spain
(2)
Compensation Committee
Other Information
Officers
Ellen R. Gordon
Chairman of the Board and
Chief Executive Officer
G. Howard Ember, Jr.
Vice President, Finance &
Chief Financial Officer
Henry G. Mills
Vice President, Chief
Operating Officer
Stephen P. Green
Vice President, Manufacturing
Kenneth D. Naylor
Vice President,
Marketing & Sales
Barry P. Bowen
Treasurer & Assistant
Secretary
Robert L. Zirk
Controller
Stock Exchange
New York Stock
Exchange, Inc.
(Since 1922)
Stock Identification
Ticker Symbol: TR
CUSIP No. 890516 10-7
Stock Transfer Agent and
Stock Registrar
Equiniti Trust Company,
LLC (   EQ   )
55 Challenger Rd, 2nd Floor
Ridgefield Park, NJ 07660
1-800-937-5449
https://equiniti.com/us/
ast-access
helpAST@equiniti.com
Independent Registered
Public Accounting Firm
Grant Thornton LLP
171 North Clark Street,
Suite 200
Chicago, Illinois 60601
General Counsel
Aronberg Goldgehn Davis &
Garmisa
225 West Washington Street,
Suite 2800
Chicago, Illinois 60606
Annual Meeting
May 5, 2025
One James Center, Suite 200
901 East Cary Street
Richmond, Virginia 23219
Financial Highlights
December 31,
2024
2023
(in thousands except per share data)
Net Product Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net Earnings Attributable to Tootsie Roll Industries, Inc. . . . . . . . . . . . . . . . . .
Working Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net Property, Plant and Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shareholders    Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average Shares Outstanding* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Per Share Items
Net Earnings Attributable to Tootsie Roll Industries, Inc.* . . . . . . . . . . . . . . . .
Cash Dividends Paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$715,530
86,827
246,319
219,803
870,743
71,320
$763,252
91,912
245,763
222,978
823,422
71,903
$1.22
0.36
$1.28
0.36
*Adjusted for stock dividends.
Printed on recycled paper.
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2/28/23
2/24/25 9:10
11:10AM
AM

To Our Shareholders
Ellen R. Gordon, Chairman and Chief Executive Officer
Net product sales in 2024 were $716 million compared to $763 million in 2023, a
decrease of $47.7 million or 6%. Throughout 2024 we faced some market challenges as customers and consumers alike became more resistant to higher prices
resulting from the cumulative inflationary pressures of the past few years. These
headwinds had an adverse effect on sales in 2024.
Net earnings were $86.8 million compared to $91.9 million in 2023, a decrease of
$5.1 million and net earnings per share were $1.22 compared to $1.28 in 2023, a
decrease of $0.06 per share or 5%.
During the fourth quarter 2024, the Company   s Board of Directors revoked its
prior action that preserved the full income tax deductibility of nonqualified deferred
compensation in light of changes made by the Tax Cuts and Jobs Act of 2017. As
a result, the Company wrote off $11 million of deferred tax assets in fourth quarter 2024, resulting in a like increase in income tax expense and corresponding
decrease in net earnings. Adjusting for this nonrecurring, non-cash charge, net
earnings in 2024 would have been $97.8 million compared to $91.9 million in 2023,
an increase of $5.9 million or 6%.
Like many consumer products companies, in recent years we have implemented
price increases in response to increases in input costs, with the objective of maintaining margins. Although we made progress in restoring our margins in 2024,
cocoa and chocolate costs have moved significantly higher in the markets this year,
and we will experience even higher cocoa and chocolate costs in 2025 as many of
our older supply contracts expired and new contracts at higher costs become effective. Although the Company continues to monitor its input costs, we are mindful
of the effects of passing on higher prices to our customers and consumers of our
products.
Cost pressures of one sort or another are nothing new. We always endeavor to
keep our operations lean so that we can deliver maximum value to our consumers and our shareholders. We are mindful that a key objective for our venerable
brands is to maintain their value orientation. In order to achieve this goal we strive
to mitigate costs and maximize efficiency wherever possible without jeopardizing

the long-term strength of the Company and its brands. We deem
it essential to be a low cost producer and one of the ways we
work toward this goal is by actively pursuing investments in the
latest equipment and technology.
Capital expenditures were $18.4 million in 2024. The Company
continually invests in its manufacturing operations to meet evolving customer and consumer demands, achieve quality improvements, and increase operational efficiencies. In particular, during
2024, new high-speed production and packaging equipment was
added in a number of our plants and several important infrastructure projects were completed. We find that many of the capital
projects we undertake involve increasingly sophisticated technology which adds complexity and expense to their implementation
but pays off with greater speed and efficiency in the long term.
Other highlights of 2024 include:
    Cash dividends were paid to shareholders for the 82nd
consecutive year.
    Our cash dividends in 2024 totaled $25.5 million or $0.36 per
share.
    Our 60th consecutive annual 3% stock dividend was
distributed
    448,214 shares of our common stock were repurchased in the
open market for an aggregate price of $13.5 million.
The above actions were accomplished using internally generated
funds, giving credence to the wisdom of the principles enumerated on the inside cover page of this report. They have guided
the Company for many years. For example, we have always
maintained a conservative financial posture and taken a longterm perspective toward our business and caring for our brands.
These principles have served the Company and its shareholders
well and we remain committed to them.
We ended 2024 with $429 million of cash and investments, net
of interest bearing debt and excluding investments that hedge
deferred compensation liabilities. These solid financial resources
enable the Company to continue to reinvest in operating assets,
promote our brands, develop new products and line extensions,
distribute cash dividends, repurchase Company stock and seek
business acquisition opportunities. We are continually active in
each of these important facets of our business.
Candy is sold in virtually every retail trade channel and we face
intense competition in our industry. Consumers can choose
from a broad array of appealing product offerings and the trade
is highly selective in the items they carry. The market is also
continually evolving as pack sizes, product presentations and
assortments are developed to meet the changing preferences
of the trade and our consumers. The Company   s iconic brands
have been successful for many years. Our goal is to keep them
pure and satisfying to the many long-term consumers who know
and enjoy them, yet tailor them in response to shifting market
conditions and to attract new generations of consumers.
Halloween is traditionally the largest selling season for our products with third quarter sales surpassing that of any other quarter
of the year. This was the case again in 2024. Sales during this

important season were driven by promotions tailored to our most
significant classes of trade including mass merchandisers, drug
chains, warehouse clubs, grocery stores and dollar stores. Packaged goods, including mixed assortments of our most popular
items, have remained highly successful in these channels.
Favorites such as Tootsie Rolls, Tootsie Pops and Blow Pops
are offered in a variety of pack sizes designed to meet consumer
needs ranging from    pantry    to    party.    Smaller bags appeal to
smaller, budget conscious households and are most suitable for
personal consumption. Larger stand-up pouch style bags offer
superior value and appeal more to larger households, or for family gatherings or social occasions, sharing, such as candy bowls
or other give-a-ways, and parties or other larger festivities where
our products are often enjoyed.
Our popular Childs Play assortment, consisting of the highly
recognizable Tootsie Roll, Tootsie Fruit Chews, Tootsie Pops and
DOTS brands, has long been a Halloween consumer favorite.
In 2024 this mix was fine-tuned in order to expand its appeal
among everyday buyers. This entailed altering the assortment
to emphasize more of the fruity and gummy elements that are
trending up with young consumers, along with greater homogenization of the piece sizes to facilitate snacking, office candy dish
and other everyday usage occasions.
These modifications were made in conjunction with a package
redesign. The end result is a variety of types and flavors of
candy in one package, pieces that are portable, ready to eat
and less messy compared to chocolate products, and an attractive value proposition. It is a contemporary assortment of
trusted brands offered in a variety of desirable pack sizes with
an improved shelf presentation and greater appeal to emerging
consumer preferences.
Our Andes line also had a package refresh in 2024. The full line
of 4.67 ounce packages, including the iconic Cr  me De Menthe
along with the full range of other flavors and seasonal offerings
is now available in an attractive display box presentation. This
format provides a more visible product    billboard    which accentuates the Andes logo while expanding the range of suitable
merchandising placements to include the desirable retail checkout space.
The Blow Pop line was expanded to include a new eight count
   bunch pop    offering. This item features eight Blow Pops with
assorted flavors in a bouquet presentation with a colorful overwrap. Packed twelve in an attractive display box that meets the
requirements of on shelf as well as front end placements for the
convenience store and grocery trade classes, this item offers a
higher ring for retailers while fitting multiple needs of personal
consumption and sharing for consumers on the go.
Blow Pops have also been a popular item in our Valentine   s Day
set with its Friendship Exchange Box of lollipops. Capitalizing
on this success, in 2024 we expanded the Blow Pop Valentine   s
Day franchise with the addition of heart-shaped Blow Pop minis.
Featuring four luscious flavors packed in 3 ounce resealable
pouches, this is a fun item for kids to share on that special day.



 3/27/2025 Letter Continued (Full PDF)