Tootsie Roll Industries Inc. (TR, Financial) filed Annual Report for the period ended 2011-12-31.
Tootsie Roll has a market cap of $1.38 billion; its shares were traded at around $23.42 with a P/E ratio of 31.8 and P/S ratio of 2.6. The dividend yield of Tootsie Roll stocks is 1.3%.
The Company has historically hedged certain of its future sugar, corn syrup and soybean oil needs with derivatives at such times that it believes that the forward markets are favorable. The Companys decision to hedge its major ingredient requirements is dependent on our evaluation of forward commodities markets and comparison to vendor quotations, if available, and/or historical costs. The Company has historically hedged with derivatives these major commodities and ingredients before the commencement of the next calendar year to better ascertain the need for product pricing changes or product weight decline (indirect price change) adjustments to its product sales portfolio and better manage ingredient costs. The Company will generally purchase forward derivative contracts (i.e., long position) in selected future months that correspond to the Companys estimated procurement and usage needs of the respective commodity in the respective forward periods.
Revenues from Wal-Mart Stores, Inc. aggregated approximately 23.3%, 21.4%, and 22.9% of net product sales during the years ended December 31, 2011, 2010 and 2009, respectively. Although no other customer other than Wal-Mart Stores, Inc. accounted for more than 10% of net sales, the loss of one or more significant customers could have a material adverse effect on the Companys business.
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Tootsie Roll has a market cap of $1.38 billion; its shares were traded at around $23.42 with a P/E ratio of 31.8 and P/S ratio of 2.6. The dividend yield of Tootsie Roll stocks is 1.3%.
Highlight of Business Operations:
The Company was adversely affected by significantly higher input costs, including approximately $17,300,000 of ingredient unit cost increases in 2011 compared to 2010. The Company generally experienced significant cost increases in sugar, corn syrup, cocoa, edible oils, dairy, gum base and packaging inputs resulting in higher cost of goods sold as a percentage of sales.The Company has historically hedged certain of its future sugar, corn syrup and soybean oil needs with derivatives at such times that it believes that the forward markets are favorable. The Companys decision to hedge its major ingredient requirements is dependent on our evaluation of forward commodities markets and comparison to vendor quotations, if available, and/or historical costs. The Company has historically hedged with derivatives these major commodities and ingredients before the commencement of the next calendar year to better ascertain the need for product pricing changes or product weight decline (indirect price change) adjustments to its product sales portfolio and better manage ingredient costs. The Company will generally purchase forward derivative contracts (i.e., long position) in selected future months that correspond to the Companys estimated procurement and usage needs of the respective commodity in the respective forward periods.
Revenues from Wal-Mart Stores, Inc. aggregated approximately 23.3%, 21.4%, and 22.9% of net product sales during the years ended December 31, 2011, 2010 and 2009, respectively. Although no other customer other than Wal-Mart Stores, Inc. accounted for more than 10% of net sales, the loss of one or more significant customers could have a material adverse effect on the Companys business.
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