Q2 2024 Caesarstone Ltd Earnings Call Transcript
Key Points
- Gross margin improved significantly to 22.9% compared to 8.3% in the prior year quarter.
- Closure of the Richmond Hill facilities is on track to deliver annual cost savings of approximately $20 million in 2024 and $30 million annually by next year.
- Increased stake in the Indian porcelain facility from 60% to 81%, strengthening their position in the porcelain market.
- Positive cash flow from operations of $10 million in the quarter, driven by inventory reductions and other working capital improvements.
- Strong liquidity position with cash, cash equivalents, and short-term bank deposits totaling $103.6 million.
- Global revenue for the second quarter was $119.4 million, down 16.9% year-over-year.
- Sales in the US were down 13.8% to $59.8 million, driven by softer residential end markets and less favorable product mix.
- Australia sales were off by approximately 20.8% on a constant currency basis, reflecting slower market conditions and regulatory transitions.
- Operating loss in the second quarter was $9.3 million compared to $46.9 million in the prior year quarter.
- Increased shipping and material costs are expected to negatively impact operations and results in the second half of 2024.
Greetings and welcome to the Caesarstone Second Quarter 2024 earnings conference call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation to ask a question, you may press star, then one on your touchtone phone. To withdraw your question, please press star then two. As a reminder, this conference call is being recorded.
It is now my pleasure to introduce your host, Mr. Brad Cray of ICR. Please go ahead, sir.
Thank you, operator, and good morning to everyone on the line. I am joined by Sharon Caesarstone, Chief Executive Officer, and the Home Trust Caesarstone, Chief Financial Officer. Certain statements in today's conference call and responses to various questions may constitute forward-looking statements. We caution you that such statements reflect only the Company's current expectations and that actual events or results may differ materially. For more information, please refer to the risk factors contained in the Company's most recent annual
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