Caesarstone Reports First Quarter 2025 Financial Results
- Revenue of
- Gross Margin of 21.3% -
- Strong Balance Sheet with Net Cash Position of
- Continued Progress on Strategic Transformation and Cost Optimization Initiatives -
MP MENASHE,
First Quarter 2025 Results
Revenue in the first quarter of 2025 was
Gross margin in the first quarter of 2025 was 21.3% compared to 24.5% in the prior year quarter. Adjusted gross margin in the first quarter was 21.2%, compared to 24.4% in the prior year quarter. The difference in gross margin was mainly due to unfavorable product mix and lower volumes and production, which resulted in lower fixed costs absorption, partially offset by the benefits of an improved production footprint.
Operating expenses in the first quarter of 2025 were
Operating loss in the first quarter of 2025 was
Adjusted EBITDA in the first quarter of 2025, which excludes expenses for non-cash share-based compensation, legal settlements and loss contingencies, impairment and restructuring charges and other non-recurring items, was a loss of
Finance income in the first quarter of 2025 was
Net loss attributable to controlling interest for the first quarter of 2025 was
Balance Sheet & Liquidity
As of
US Tariffs Update
The
Legal Proceedings Update
As of
If there is a change in the assessment for the outcome of the claims or the insurance coverage through the course of the trial processes, such changes could lead to a material and adverse impact on our business, financial position, results of operations or cash flows.
Outlook
“We are on track to realize the full benefits of our cost optimization initiatives and strategic investments for 2025. However, given the persistent macroeconomic pressures across our global footprint and the recently imposed
Webcast and Conference Call Details
The Company will host a webcast and conference call today,
To listen to a telephonic replay of the conference call, dial toll-free 1-844-512-2921 or +1-412-317-6671 (international) and enter pass code 10198535. The replay will be available beginning at
About
Since it pioneered quartz countertops over thirty years ago, the brand has expanded into porcelain and natural stone and is on the ground in more than 50 countries worldwide while enhancing customer experience through the expansion of groundbreaking digital platforms & services. More information on
The Company has filed its annual report on Form 20-F for the year ended
Non-GAAP Financial Measures
The non-GAAP measures presented by the Company should be considered in addition to, and not as a substitute for, comparable GAAP measures. Reconciliations of GAAP gross profit to Adjusted gross profit, GAAP net income (loss) to Adjusted net income (loss) and net income (loss) to Adjusted EBITDA are provided in the schedules to this release. To calculate revenues growth rates that exclude the impact of changes in foreign currency exchange rates, the Company converts actual reported results from local currency to
Forward-Looking Statements
Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “goals," “intend,” “seek,” “anticipate,” “believe,” “could,” “continue,” “expect,” “estimate,” “may,” “plan,” “outlook,” “future” and “project” and other similar expressions that predict, project or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include statements regarding the Company’s goals and plans, intentions, expectations, assumptions, goals and beliefs regarding the Company’s business. Actual results may differ materially from those projections and estimates due to various risks and uncertainties, both known or unknown. These factors include, but are not limited to: the effects of global and regional economy and geo-politics on the Company’s business and operations including the length, duration and impact of the war in
Condensed consolidated balance sheets |
||||||||
As of | ||||||||
|
|
|
||||||
(Unaudited) | (Audited) | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents and short-term bank deposits |
$ |
88,811 |
|
$ |
106,336 |
|
||
Trade receivables, net |
|
55,848 |
|
|
46,880 |
|
||
Other accounts receivable and prepaid expenses |
|
76,090 |
|
|
82,651 |
|
||
Inventories |
|
115,255 |
|
|
112,609 |
|
||
Total current assets |
|
336,004 |
|
|
348,476 |
|
||
LONG-TERM ASSETS: | ||||||||
Severance pay fund |
|
1,524 |
|
|
1,526 |
|
||
Deferred tax assets, net |
|
2,704 |
|
|
2,910 |
|
||
Long-term deposits and prepaid expenses |
|
4,818 |
|
|
4,750 |
|
||
Operating lease right-of-use assets |
|
119,783 |
|
|
115,392 |
|
||
Property, plant and equipment, net (*) |
|
74,361 |
|
|
75,724 |
|
||
Intangible assets, net |
|
176 |
|
|
263 |
|
||
Total long-term assets |
|
203,366 |
|
|
200,565 |
|
||
Total assets |
$ |
539,370 |
|
$ |
549,041 |
|
||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Short-term bank credit |
$ |
3,560 |
|
$ |
4,555 |
|
||
Trade payables |
|
51,958 |
|
|
52,838 |
|
||
Related parties |
|
200 |
|
|
206 |
|
||
Short term legal settlements and loss contingencies |
|
40,357 |
|
|
42,706 |
|
||
Accrued expenses and other liabilities |
|
55,533 |
|
|
51,383 |
|
||
Total current liabilities |
|
151,608 |
|
|
151,688 |
|
||
LONG-TERM LIABILITIES: | ||||||||
Long-term bank and other loans |
|
444 |
|
|
444 |
|
||
Legal settlements and loss contingencies long-term and other liabilities |
|
9,753 |
|
|
9,492 |
|
||
Deferred tax liabilities, net |
|
2,394 |
|
|
2,439 |
|
||
Long-term lease liabilities |
|
109,897 |
|
|
107,313 |
|
||
Accrued severance pay |
|
2,968 |
|
|
2,978 |
|
||
Long-term warranty provision |
|
875 |
|
|
902 |
|
||
Total long-term liabilities |
|
126,331 |
|
|
123,568 |
|
||
REDEEMABLE NON-CONTROLLING INTEREST |
|
2,200 |
|
|
2,200 |
|
||
EQUITY: | ||||||||
Ordinary shares |
|
371 |
|
|
371 |
|
||
|
|
(39,430 |
) |
|
(39,430 |
) |
||
Additional paid-in capital |
|
166,906 |
|
|
166,500 |
|
||
Capital fund related to non-controlling interest |
|
(5,587 |
) |
|
(5,587 |
) |
||
Accumulated other comprehensive income (loss), net |
|
(14,641 |
) |
|
(14,870 |
) |
||
Retained earnings |
|
151,612 |
|
|
164,601 |
|
||
Total equity |
|
259,231 |
|
|
271,585 |
|
||
Total liabilities and equity |
$ |
539,370 |
|
$ |
549,041 |
|
|
||||||||
Three months ended |
||||||||
|
|
2025 |
|
|
2024 |
|
||
(Unaudited) | ||||||||
Revenues |
$ |
99,558 |
|
$ |
118,292 |
|
||
Cost of revenues |
|
78,388 |
|
|
89,305 |
|
||
Gross profit |
|
21,170 |
|
|
28,987 |
|
||
Operating expenses: | ||||||||
Research and development |
|
1,437 |
|
|
1,212 |
|
||
Sales and Marketing |
|
20,700 |
|
|
22,368 |
|
||
General and administrative |
|
10,360 |
|
|
10,305 |
|
||
Restructuring expenses (*) |
|
11 |
|
|
- |
|
||
Legal settlements and loss contingencies, net |
|
3,415 |
|
|
705 |
|
||
Total operating expenses |
|
35,923 |
|
|
34,590 |
|
||
Operating loss |
|
(14,753 |
) |
|
(5,603 |
) |
||
Finance income, net |
|
(2,463 |
) |
|
(706 |
) |
||
Loss before taxes |
|
(12,290 |
) |
|
(4,897 |
) |
||
Tax expenses, net |
|
698 |
|
|
26 |
|
||
Net loss |
$ |
(12,988 |
) |
$ |
(4,923 |
) |
||
Net loss (income) attributable to non-controlling interest |
|
108 |
|
|
(164 |
) |
||
Net loss attributable to controlling interest |
$ |
(12,880 |
) |
$ |
(5,087 |
) |
||
Basic net loss per ordinary share (**) |
$ |
(0.37 |
) |
$ |
(0.15 |
) |
||
Diluted net loss per ordinary share (**) |
$ |
(0.37 |
) |
$ |
(0.15 |
) |
||
Weighted average number of ordinary shares used in computing basic loss per ordinary share |
|
34,551,999 |
|
|
34,534,185 |
|
||
Weighted average number of ordinary shares used in computing diluted loss per ordinary share |
|
34,551,999 |
|
|
34,534,185 |
|
||
(*) Related to closed plants activities. | ||||||||
(**) The numerator for the calculation of net loss per share for the three months ended |
Selected Condensed consolidated statements of cash flows |
||||||||
Three months ended |
||||||||
|
|
2025 |
|
|
2024 |
|
||
(Unaudited) |
(Unaudited) |
|||||||
Cash flows from operating activities: | ||||||||
Net loss |
$ |
(12,988 |
) |
$ |
(4,923 |
) |
||
Adjustments required to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization |
|
3,424 |
|
|
4,328 |
|
||
Share-based compensation expense |
|
406 |
|
|
585 |
|
||
Accrued severance pay, net |
|
(9 |
) |
|
247 |
|
||
Changes in deferred tax, net |
|
183 |
|
|
360 |
|
||
Capital loss (gain) |
|
(7 |
) |
|
15 |
|
||
Legal settlements and loss contingencies, net |
|
3,415 |
|
|
705 |
|
||
Decrease (increase) in trade receivables |
|
(8,770 |
) |
|
627 |
|
||
Decrease in other accounts receivable and prepaid expenses |
|
5,864 |
|
|
5,314 |
|
||
Decrease (increase) in inventories |
|
(2,220 |
) |
|
15,944 |
|
||
Decrease in trade payables |
|
(2,272 |
) |
|
(8,049 |
) |
||
Decrease in warranty provision |
|
(73 |
) |
|
(235 |
) |
||
Changes in right of use assets |
|
(3,939 |
) |
|
4,795 |
|
||
Changes in lease liabilities |
|
2,630 |
|
|
(6,044 |
) |
||
Decrease in accrued expenses and other liabilities including related parties |
|
(743 |
) |
|
(4,926 |
) |
||
Restructuring expenses and Impairment related to long lived assets |
|
11 |
|
|
- |
|
||
Net cash (used in) provided by operating activities |
|
(15,088 |
) |
|
8,743 |
|
||
Cash flows from investing activities: | ||||||||
Purchase of property, plant and equipment |
|
(1,684 |
) |
|
(2,797 |
) |
||
Proceeds from sale of property, plant and equipment |
|
54 |
|
|
31 |
|
||
Decrease (increase) in long term deposits |
|
(28 |
) |
|
(92 |
) |
||
Net cash used in investing activities |
|
(1,658 |
) |
|
(2,858 |
) |
||
Cash flows from financing activities: | ||||||||
Changes in short-term bank credits and long-term loans, including related parties |
|
(982 |
) |
|
(407 |
) |
||
Net cash used in financing activities |
|
(982 |
) |
|
(407 |
) |
||
Effect of exchange rate differences on cash and cash equivalents |
|
203 |
|
|
(449 |
) |
||
Increase (decrease) in cash and cash equivalents and short-term bank deposits |
|
(17,525 |
) |
|
5,029 |
|
||
Cash and cash equivalents and short-term bank deposits at beginning of the period |
|
106,336 |
|
|
91,123 |
|
||
Cash and cash equivalents and short-term bank deposits at end of the period |
$ |
88,811 |
|
$ |
96,152 |
|
||
Non - cash investing: | ||||||||
Changes in trade payables balances related to purchase of fixed assets |
|
386 |
|
|
(213 |
) |
|
||||||||
Three months ended |
||||||||
|
|
2025 |
|
|
2024 |
|
||
(Unaudited) |
||||||||
Reconciliation of Gross profit to Adjusted Gross profit: | ||||||||
Gross profit |
$ |
21,170 |
|
$ |
28,987 |
|
||
Share-based compensation expense (a) |
|
25 |
|
|
12 |
|
||
Amortization of assets related to acquisitions |
|
68 |
|
|
71 |
|
||
Residual operating expenses (income) related to closed plants after closing |
|
(4 |
) |
|
- |
|
||
Other non recurring items |
|
(152 |
) |
|
(152 |
) |
||
Adjusted Gross profit (Non-GAAP) |
$ |
21,107 |
|
$ |
28,918 |
|
(a) | Share-based compensation includes expenses related to stock options and restricted stock units granted to employees and directors of the Company. |
|
||||||||
Three months ended |
||||||||
|
|
2025 |
|
|
2024 |
|
||
(Unaudited) | ||||||||
Reconciliation of Net Loss to Adjusted EBITDA: | ||||||||
Net loss |
$ |
(12,988 |
) |
$ |
(4,923 |
) |
||
Finance income, net |
|
(2,463 |
) |
|
(706 |
) |
||
Taxes on income |
|
698 |
|
|
26 |
|
||
Depreciation and amortization |
|
3,576 |
|
|
4,480 |
|
||
Legal settlements and loss contingencies, net (a) |
|
3,415 |
|
|
705 |
|
||
Contingent consideration adjustment related to acquisition |
|
- |
|
|
25 |
|
||
Share-based compensation expense (b) |
|
406 |
|
|
585 |
|
||
Restructuring expense (c) |
|
11 |
|
|
- |
|
||
Residual operating expenses related to closed plants after closing |
|
408 |
|
|
595 |
|
||
Other non recurring items |
|
(152 |
) |
|
(152 |
) |
||
Adjusted EBITDA (Non-GAAP) |
$ |
(7,089 |
) |
$ |
635 |
|
(a) | Consists primarily of legal settlements expenses and loss contingencies, net, related to product liability claims. | |
(b) | Share-based compensation includes expenses related to stock options and restricted stock units granted to employees and directors of the Company. | |
(c) | Related to closed plants activities. |
|
||||||||
Three months ended |
||||||||
|
|
2025 |
|
|
2024 |
|
||
(Unaudited) |
||||||||
Reconciliation of net loss attributable to controlling interest to adjusted net loss attributable to controlling interest: | ||||||||
Net loss attributable to controlling interest |
$ |
(12,880 |
) |
$ |
(5,087 |
) |
||
Legal settlements and loss contingencies, net (a) |
|
3,415 |
|
|
705 |
|
||
Contingent consideration adjustment related to acquisition |
|
- |
|
|
25 |
|
||
Amortization of assets related to acquisitions, net of tax |
|
110 |
|
|
535 |
|
||
Share-based compensation expense (b) |
|
406 |
|
|
585 |
|
||
Non cash revaluation of lease liabilities (c) |
|
(1,597 |
) |
|
(1,567 |
) |
||
Restructuring expenses (d) |
|
11 |
|
|
- |
|
||
Residual operating expenses related to closed plants after closing |
|
408 |
|
|
595 |
|
||
Other non recurring items |
|
(152 |
) |
|
(152 |
) |
||
Total adjustments |
|
2,601 |
|
|
726 |
|
||
Less tax on non-tax adjustments (e) |
|
(148 |
) |
|
(4 |
) |
||
Total adjustments after tax |
|
2,749 |
|
|
730 |
|
||
Adjusted net loss attributable to controlling interest (Non-GAAP) |
$ |
(10,131 |
) |
$ |
(4,357 |
) |
||
Adjusted loss per share (f) |
$ |
(0.29 |
) |
$ |
(0.13 |
) |
(a) | Consists primarily of legal settlements expenses and loss contingencies, net, related to product liability claims. | |
(b) | Share-based compensation includes expenses related to stock options and restricted stock units granted to employees and directors of the Company. | |
(c) | Exchange rate differences deriving from revaluation of lease contracts in accordance with FASB ASC 842. | |
(d) | Related to closed plants activities. | |
(e) | Tax adjustments for the three and twelve months ended |
|
(f) |
In calculating adjusted (Non-GAAP) loss per share, the diluted weighted average number of shares outstanding excludes the effects of share-based compensation expense in accordance with FASB ASC 718. |
|
|||||||||||||
Geographic breakdown of revenues by region | |||||||||||||
Three months ended |
Three months ended |
||||||||||||
|
2025 |
2024 |
|||||||||||
(Unaudited) |
YoY % change |
YoY % change CCB |
|||||||||||
|
$ |
49,141 |
$ |
60,999 |
-19.4 |
% |
-19.4 |
% |
|||||
|
|
13,771 |
|
16,556 |
-16.8 |
% |
-11.5 |
% |
|||||
|
|
292 |
|
776 |
-62.4 |
% |
-62.3 |
% |
|||||
America's |
|
63,204 |
|
78,331 |
-19.3 |
% |
-18.5 |
% |
|||||
|
|
13,843 |
|
20,145 |
-31.3 |
% |
-28.2 |
% |
|||||
|
|
4,357 |
|
3,908 |
11.5 |
% |
13.9 |
% |
|||||
APAC |
|
18,200 |
|
24,054 |
-24.3 |
% |
-21.3 |
% |
|||||
EMEA |
|
13,152 |
|
11,535 |
14.0 |
% |
16.4 |
% |
|||||
|
|
5,002 |
|
4,372 |
14.4 |
% |
13.2 |
% |
|||||
Total Revenues |
$ |
99,558 |
$ |
118,292 |
-15.8 |
% |
-14.5 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250507263342/en/
Investor Relations:
CSTE@icrinc.com
+1 (646) 200-8870
Source: