Caesarstone Sets First-Quarter Revenue Record
MP MENASHE, Israel – Caesarstone Ltd. produced a record level of first-quarter revenue this year – and, in the United States, a key 2020 acquisition helped.
The Israeli surfacing company reported $146 million in revenue during the first three months of 2021, beating the same time last year by 15.6%.
“We are extremely pleased to produce another consecutive quarter of growth as we continue to successfully execute our strategy to transform Caesarstone into a leading premium, multi-material countertop company,” said Yuval Dagim, Caesarstone CEO.
Dagim noted that two acquisitions in the second half of 2020 – large porcelain-panel maker Lioli Ceramica in India and hard-surfaces distributor Omicron Granite and Tile – “are already contributing to results, helping us to deliver record first quarter revenue.”
Omicron’s influence on Caesarstone’s financial performance came to the fore during a conference call May 5 between Caesarstone executives and U.S. financial analysts. The company recorded $70.8 million in revenue from U.S. operations during first-quarter 2021, surpassing the same period last year by 17.9%.
However, in answering anaylsts’ questions, Dagim explained that organic revenue – sales coming from Caesarstone’s continuing operations – actually declined by 7%. The addition of Omicron’s revenues led to the uptick in U.S. performance in the first quarter.
All U.S. operations are in line to perform well for the remainder of 2021, noted Caesarstone CFO Ophir Yakovian.
“We see good momentum into the second quarter, and expect to see this improved performance in the United States as we progress through the year,” Yakovian said.
Caesarstone’s official guidance is for 2021 revenue and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) to be higher year-over-year. However, Caesarstone also sees revenue growing faster than EBITDA this year, mainly due to higher shipping and raw material costs, coupled with “a return to more-normalized levels of sales and marketing expenses and other investments to support the company’s growth initiatives. “
Caesarstone also assumes that pandemic-related business restrictions will fade and that the supply environment will improve as the year progresses.
Caesarstone’s board of directors declared a cash dividend of $0.21 per share for this year’s first quarter. The dividend will be paid on June 1 to shareholders of record as of May 18.
Caesarstone is traded on NASDAQ under the ticker symbol CSTE.
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