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TOOTSIE ROLL INDUSTRIES , INC . 7401 South Cicero Avenue Chicago , IL 60629 Phone 773 / 838-3400 Fax 773 / 838-3534 PRESS RELEASE STOCK TRADED : NYSE TICKER SYMBOL : TR FOR IMMEDIATE RELEASE Wednesday , July 21 , 2021 - CHICAGO , ILLINOIS – July 21 , 2021 - Ellen R. Gordon , Chairman , Tootsie Roll Industries , Inc. reported second quarter and first half 2021 net sales and net earnings . Second quarter 2021 net sales were $ 114,560,000 compared to $ 79,796,000 in second quarter 2020 , an increase of $ 34,764,000 or 44 % . Second quarter 2021 net earnings were $ 9,794,000 compared to $ 7,388,000 in second quarter 2020 , and net earnings per share were $ 0.14 and $ 0.11 in second quarter 2021 and 2020 , respectively , an increase of $ 0.03 per share or 27 % . First half 2021 net sales were $ 216,355,000 compared to $ 182,599,000 in first half 2020 , an increase of $ 33,756,000 or 18 % . First half 2021 net earnings were $ 20,561,000 compared to $ 19,370,000 in first half 2020 , and net earnings per share were $ 0.30 and $ 0.28 in first half 2021 and 2020 , respectively , an increase of $ 0.02 per share or 7 % . Mrs. Gordon said , “ Second quarter sales reflect effective sales and marketing programs as the economy continues to recover and “ re - open ” from the adverse effects of the Covid - 19 pandemic . The Covid - 19 pandemic curtailed and limited access to certain channels of trade where the Company has historically sold its products . Response to this pandemic resulted in the disruption and changes in lifestyles and shopping habits which has adversely affected planned consumer purchases of the Company's products for “ sharing " and " give away " occasions . As the effects of the pandemic subsided throughout first half 2021 , the Company had continuing improvement in customer orders and sales . Second quarter 2021 sales also exceeded second quarter 2019 sales by 8 % which provides a quarterly sales comparison prior to the pandemic , and first half 2021 sales were 4 % ahead of first half 2019 sales . Our 44 % increase in second quarter 2021 sales contributed to a first half 2021 sales increase of 18 % compared to first half 2020 , and these higher sales were the principal driver of increased net earnings in second quarter and first half 2021. Second quarter and first half 2021 gross profit margins and net earnings were adversely affected by increasing costs for ingredients , packaging materials , freight and delivery , and certain manufacturing supplies . These increased costs and expenses were more pronounced in second quarter 2021 , and we expect these costs to remain at elevated levels for the balance of the year and into 2022. In response to these higher costs , the confectionary industry has announced increases in selling prices in order to restore margins , and we have followed with some price increases as well . These price increases will be phased in during the balance of 2021. Second quarter results were also adversely affected by higher than expected sales demand which resulted in additional costs related to our efforts to meet this higher demand .