Caesarstone Reports First Quarter 2025 Financial Results
- Revenue of
- Gross Margin of
- Strong Balance Sheet with Net Cash Position of
- Continued Progress on Strategic Transformation and Cost Optimization Initiatives -
MP MENASHE,
Yos Shiran, Caesarstone’s Chief Executive Officer commented, “We delivered modest sequential improvement this quarter as our business continues to stabilize in a challenging market environment. These results reflect our ability to effectively navigate a complex global landscape while advancing key initiatives that are designed to transform our business for long-term success. Our manufacturing optimization efforts are already yielding measurable benefits, our porcelain expansion is gaining momentum, and we anticipate that our R&D investments will drive growth. While we are carefully monitoring the impact of recently imposed
First Quarter 2025 Results
Revenue in the first quarter of 2025 was
Gross margin in the first quarter of 2025 was
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 March 31, 2025, the Company’s balance sheet included cash, cash equivalents and short-term bank deposits of
US Tariffs Update
The
Legal Proceedings Update
As of March 31, 2025, the Company was subject to lawsuits with respect to 357 injured persons alleging injuries associated with exposure of fabricators and their employees to respirable crystalline silica dust. Of these, 51 were in
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, May 7, 2025, at 8:30 a.m. ET to discuss the results, followed by a question and answer session for the investment community. The live webcast can be accessed through the Investor Relations section of the Company’s website at ir.caesarstone.com. For those unable to access the webcast, the conference call will be accessible domestically or internationally, by dialing 1-833-816-1463 and 1-412-542-4167, respectively. The toll-free Israeli number is 1 80 921 3284. Upon dialing in, please request to join the Caesarstone First Quarter 2025 Earnings Conference Call.
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 12:30 p.m. ET on Wednesday, May 7, 2025 and will last through 11:59 p.m. ET on Wednesday, May 14, 2025.
About Caesarstone
Caesarstone is a global leader of premium surfaces, specializing in countertops that create dynamic spaces of inspiration in the heart of the home. Established in 1987, its multi-material portfolio of over 100 colors combines the company’s innovative technology with its powerful design passion. Spearheading high-quality, sustainable surfaces, Caesarstone delivers functional resilience with timeless beauty, for a vast range of applications, including kitchen countertops, bathroom vanities, and more, for indoor and outdoor spaces.
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 Caesarstone: caesarstoneus.com, Facebook, LinkedIn and Instagram
The Company has filed its annual report on Form 20-F for the year ended December 31, 2024 with the
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
| Caesarstone Ltd. and its subsidiaries Condensed consolidated balance sheets |
||||||||
| As of | ||||||||
| March 31, 2025 | December 31, 2024 | |||||||
| (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 |
|
||
| Treasury shares - at cost |
|
(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 |
|
||
Caesarstone Ltd. and its subsidiaries
|
||||||||
Three months ended March 31, |
||||||||
|
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 March 31, 2024, has been decreased by approximately |
||||||||
| Caesarstone Ltd. and its subsidiaries Selected Condensed consolidated statements of cash flows |
||||||||
Three months ended March 31, |
||||||||
|
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 |
) |
||
Caesarstone Ltd. and its subsidiaries |
||||||||
Three months ended March 31, |
||||||||
|
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. |
| Caesarstone Ltd. and its subsidiaries | ||||||||
Three months ended March 31, |
||||||||
|
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. |
| Caesarstone Ltd. and its subsidiaries | ||||||||
Three months ended March 31, |
||||||||
|
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 March 31, 2025 and 2024, based on the effective tax rates. | |
(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. |
| Caesarstone Ltd. and its subsidiaries | |||||||||||||
| Geographic breakdown of revenues by region | |||||||||||||
Three months ended Mar 31, |
Three months ended Mar 31, |
||||||||||||
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:
ICR, Inc. - Rodny Nacier
CSTE@icrinc.com
+1 (646) 200-8870
Source: Caesarstone Ltd.
