Caesarstone Ltd. (CSTE) Q3 2024 Earnings Call Transcript
Global Revenue $107.6 million, down 24.8% year-over-year; decline driven by lower volumes due to global economic headwinds, particularly in residential renovation and remodeling channels.
U.S. Sales $52.4 million, down 20.5% year-over-year; decline mainly due to softer residential end markets and less favorable product mix.
Canada Sales Down 23.8% on a constant currency basis; similar market dynamics as the U.S. contributed to the decline.
Australia Sales Down approximately 37.7% on a constant currency basis; decline mainly due to slower market conditions and the transition to alternative materials.
EMEA Region Sales Down 26% on a constant currency basis; slow market conditions in the U.K., Sweden, and indirect EMEA business contributed to the decline.
Israel Sales Down 24.5% on a constant currency basis; decline mainly due to the war on terror significantly reducing activity in the region.
Gross Margin 19.9%, improved from 19.1% year-over-year; improvement driven by benefits of an improved production footprint, partially offset by unfavorable product mix and increased shipping and material costs.
Adjusted Gross Margin 19.8%, stable compared to the prior year quarter; stability attributed to improved production footprint.
Operating Expenses $25.4 million (23.6% of revenue), down from $29.2 million (20.5% of revenue) year-over-year; lower absolute dollars but higher percentage due to lower revenues.
Adjusted EBITDA Loss of $4.1 million, compared to a gain of $1.9 million in the prior year quarter; decline attributed to lower revenues and increased costs.
Cash and Short Term Deposits $114.1 million; strong balance sheet position.
Total Debt $5.2 million; indicates low leverage.
Net Cash Position Improved to $108.9 million from $83.5 million at the end of 2023; reflects strong cash generation.
Operating Cash Flow $16.3 million generated during the third quarter; driven primarily by the sale of land and continued working capital optimization.
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Caesarstone Ltd. (CSTE) Q3 2024 Earnings Call Transcript
Earnings Conference Call Overview: Caesarstone Ltd. held its Q3 2024 earnings conference call on November 13, 2024, featuring key participants including CEO Yos Shiran and CFO Nahum Trost, discussing the company's financial performance and future expectations.
Forward-Looking Statements and Financial Measures: The call included caution regarding forward-looking statements and referenced non-GAAP financial measures, with details available in the company's earnings release on their Investor Relations website.

Caesarstone Reports Third Quarter 2024 Financial Results
Financial Performance: Caesarstone Ltd. reported a significant decline in revenue for Q3 2024, totaling $107.6 million, down from $142.4 million in the previous year, attributed to lower demand and competitive pressures amid global economic challenges. Despite this, the company achieved a gross margin improvement to 19.9% and maintained positive cash flow from operations.
Outlook and Restructuring: The company is focused on restructuring efforts aimed at achieving approximately $20 million in cost savings for 2024, while also investing in product innovation and marketing to stimulate demand. However, it anticipates an Adjusted EBITDA loss of $10 to $11 million for the full year due to ongoing macroeconomic pressures.





