Caesarstone Ltd. (CSTE) has reported a 12.81 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $22.34 million, or $0.65 a share in the quarter, compared with $19.81 million, or $0.56 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $24.26 million, or $0.70 a share compared with $24.40 million or $0.69 a share, a year ago. Revenue during the quarter grew 5.47 percent to $144.31 million from $136.82 million in the previous year period. Gross margin for the quarter expanded 98 basis points over the previous year period to 40.51 percent. Total expenses were 80.48 percent of quarterly revenues, down from 81.93 percent for the same period last year. This has led to an improvement of 146 basis points in operating margin to 19.52 percent.
Operating income for the quarter was $28.18 million, compared with $24.72 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $37.52 million compared with $36.21 million in the prior year period. At the same time, adjusted EBITDA margin contracted 47 basis points in the quarter to 26 percent from 26.47 percent in the last year period.
Yonathan Melamed, chairman, commented, "We are pleased to continue to achieve record revenue with growth in many regions demonstrating the strength of our brand globally and the success of our innovative products. At the same time, given the strength of the ongoing market opportunity for quartz, we are not satisfied with our third-quarter performance in the United States. We have taken significant actions to enhance a number of key operating capabilities. We have a strong business with excellent products, high level service and a tremendous brand and we believe we can reaccelerate our business in the United States."
For financial year 2016, Caesarstone Ltd. projects revenue to be in the range of $524 million to $534 million.
Operating cash flow improves significantly
Caesarstone Ltd. has generated cash of $65.63 million from operating activities during the nine month period, up 27.61 percent or $14.20 million, when compared with the last year period. The company has spent $16.91 million cash to meet investing activities during the nine month period as against cash outgo of $57.41 million in the last year period.
The company has spent $35.38 million cash to carry out financing activities during the nine month period as against cash inflow of $5.95 million in the last year period.
Cash and cash equivalents stood at $74.54 million as on Sep. 30, 2016, up 41.73 percent or $21.95 million from $52.59 million on Sep. 30, 2015.
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