Israeli quartz countertop manufacturer Caesarstone (Nasdaq: CSTE) has announced that it is reducing its workforce by 10%. More than 200 employees will be leaving the company including some who have been dismissed and others departing of their own volition. Caesarstone is traded on Nasdaq with a market cap of $201 million after its share price has fallen 46.5% over the past year. The controlling shareholders in Caesarstone are the Tene Fund and Kibbutz Sdot Yam.
Caesarstone said, "As a company that is exposed to the conditions of the global market and its fluctuations, we are required to adjust the scale of our activities in order to deal with a slowdown/recession and a decrease in demand for kitchen work surfaces by private consumers and in commercial projects around the world. As we announced recently, the company has begun implementing streamlining procedures that include a series of measures. One of these measures is a reduction of about 10% in our workforce worldwide, a small part of them in Israel, and the main part in the company's plants around the world. In addition, we are also making operational efficiency moves, price increases, focusing on growth engines and more. "We stress that Caesarstone is a strong global brand with high consumer and business partner loyalty, something that will help better deal with the consequences of this period."
At the end of 2021, Caesarstone had 2,272 employees including 697 in Israel. 1,400 of these employees were engaged in manufacturing and operations. The company's workforce has grown following two acquisitions in the past two years - acquiring control of Indian porcelain company Lioli for $12 million and acquisition of US distribution company Omnicron for $27 million. The acquisitions are part of Caesarstone's strategy of diversifying the materials it uses and geographical expansion.
In the third quarter of 2022, Caesarstone's revenue amounted to $181 million, up 10.6% from the corresponding quarter of 2021. The company said that growth was hit by exchange rate fluctuations. Caesarstone reported a net loss of $500,000 and EBITDA of $13.4 million. The company cut its guidance and sees annual revenue of $690-700 million, down from its intital forecast of $710-725 million and EBITDA of 8%-8.5%.
Published by Globes, Israel business news - en.globes.co.il - on December 25, 2022.
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