Caesarstone: Net income for 2020 amounted to $ 7.2 million - 45% decrease

Caesarstone reports its financial results for the last quarter of 2020 and for the entire year: Net income for the entire year amounted to about $ 7.2 million compared to about $ 12.9 million last year - a decrease of about 45%. Annual revenues totaled approximately $ 486.4 million, compared to approximately $ 546 million last year. On the basis of fixed exchange rates, this is a decrease of 11.1%.
In the fourth quarter, the net loss was about $ 2.4 million (0.07 d / share) compared to a net loss of about 0.3 million (0.01 d / share) in the corresponding quarter. Adjusted net earnings per share in the fourth quarter were 0.05 d per share in full dilution on a basis of approximately 34.5 million shares, compared with 0.16 d on a basis of approximately 34.6 million shares in the corresponding quarter. Quarterly revenues were about $ 136.9 million, an increase of 2.3% compared to $ 133.9 million in the corresponding quarter, but on the basis of fixed exchange rates, this is actually a decrease of 0.4%. The company explains the decline in revenue due to the corona plague but notes that they were partially offset, mainly in the fourth quarter, due to the contribution of acquisitions to July Ceramics and growth outside the US.
The rate of gross profit per year increased to 27.5% compared to 27.2% last year, and the described gross profit was about 27.7%, compared to about 27.3% last year, with the improvement mainly due to improved operating efficiency according to the company, lower raw material costs and improved product mix . The low sales turnover clouded the improvement. In the fourth quarter, the gross profit margin rose to 28.1%, compared with 26.1% in the corresponding quarter last year, and the adjusted gross profit margin in the fourth quarter was 28.6%, compared with 26.4% in the corresponding quarter.
Financing expenses in the fourth quarter amounted to approximately $ 8.6 million, compared with financing income of approximately $ 0.6 million in the corresponding quarter last year, when the change was mainly due to the effect of exchange rates. Financing expenses in 2020 amounted to approximately $ 10.2 million, compared with approximately $ 5.6 million last year. The change was mainly due to the effect of exchange rates. The company ended 2020 with a balance of cash and investments in marketable securities net of bank debt of approximately $ 110.6 million.
Even Caesar expects revenue this year and adjusted EBITDA to be higher than in 2020. The company estimates that revenues will grow rapidly from EBITDA in light of the negative impact of shipping costs and higher raw material prices, along with a return to "more normal levels of sales and marketing expenses and other investments to support the company's growth initiatives".
"In 2020, which was a year of unprecedented challenges in the global economy, we have significantly advanced the business transformation process of Ibn Qaysar," said CEO Yuval Dagim. To strengthen our position as a leading multi-material premium company in the global work surface market. "