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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 , October 27 , 2021 _ CHICAGO , ILLINOIS – October 27 , 2021 - Ellen R. Gordon , Chairman , Tootsie Roll Industries , Inc. reported third quarter and nine months 2021 net sales and net earnings . Third quarter 2021 net sales were $ 183,090,000 compared to $ 156,962,000 in third quarter 2020 , an increase of $ 26,128,000 or 17 % . Third quarter 2021 net earnings were $ 24,733,000 compared to $ 24,673,000 in third quarter 2020 , and net earnings per share were $ 0.37 and $ 0.36 in third quarter 2021 and 2020 , respectively , an increase of $ 0.01 per share or 3 % . Nine months 2021 net sales were $ 399,445,000 compared to $ 339,561,000 in nine months 2020 , an increase of $ 59,884,000 or 18 % . Nine months 2021 net earnings were $ 45,294,000 compared to $ 44,043,000 in nine months 2020 , and net earnings per share were $ 0.67 and $ 0.64 in nine months 2021 and 2020 , respectively , an increase of $ 0.03 per share or 5 % . Mrs. Gordon said , “ The growth in third quarter and nine months 2021 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 . As the effects of the pandemic subsided throughout the first nine months of 2021 , the Company had continuing improvement in customer orders and sales . Third quarter 2021 sales also exceeded third quarter 2019 sales by 1 % which provides a quarterly sales comparison prior to the pandemic , and nine months 2021 sales were 3 % ahead of nine months 2019 sales . Although higher third quarter and nine months 2021 sales contributed to improved net earnings compared to the corresponding prior year periods , higher input costs mitigated much of the benefits of increased sales . Third quarter and nine months 2021 gross profit margins and net earnings were adversely affected by increasing costs for ingredients , packaging materials , freight and delivery , and certain manufacturing supplies . Third quarter and nine months ' results were also adversely impacted by higher than expected sales demand , supply chain challenges and disruptions , and longer supplier lead times , which resulted in additional costs related to our efforts to meet this higher demand . In response to these higher input costs , the confectionary industry , as well as many companies in the broader consumer products industry , has announced increases in selling prices with the objective of restoring some of the resulting margin declines , and we have followed with price increases as well . These price increases will be phased in primarily during fourth quarter 2021 and the beginning of 2022 . Our costs continued to escalate in third quarter 2021 and we see even higher costs in 2022 as our 2021 supply contracts and hedging programs come to closure and new contracts and hedging at higher 2022 costs begin to take effect . Higher commodity markets are driving up our key ingredients , packaging materials and energy costs , including the adverse effects of higher energy costs on freight and delivery fuel surcharges and plant manufacturing utilities . We expect these higher costs and resulting overall increases in inflation , some of which