Caesarstone Ltd.

Greetings and welcome to the Cesarstown fourth 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 join the question queue, please press star then one on your telephone keypad, and to withdraw your question, please press star then two. If at any point you need assistance, please signal an operator by pressing star then zero. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Brad Cray, with Investor Relations. Thank you. You may begin.

Thank you, Operator, and good morning to everyone on the line. I am joined by Yoth Charan, Caesarstone's Chief Executive Officer, and Nahum Trost, Caesarstone's 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 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 report on Form 20F and subsequent filings with the SEC. In addition, on this call, the company will make reference to certain non-GAAP financial measures, including adjusted net loss income, adjusted net loss income per share, adjusted gross profit, adjusted EBITDA, and constant currency. The reconciliation of these non-GAAP measures to the most directly comparable GAAP measures can be found in the company's fourth quarter 2024 earnings release, which is posted on the company's investor relations website. On today's call, Yost will discuss our business activity and to whom we'll then cover additional details regarding financial results before we open the call for questions. Thank you, and I would now like to turn the call over to Yost. Please go ahead.

Thank you, Brad, and good morning, everyone. Thank you for joining us to discuss our fourth quarter and full year 2024 results. Our fourth quarter results demonstrated continued progress on our strategic transformation initiatives despite ongoing challenges in the global market environment. Throughout 2024, we made meaningful progress optimizing our operational framework and strengthening our competitive position through targeted investment in R&D, marketing, and brand development. The strategic actions we have taken to enhance our operations have driven meaningful improvements in cash flow generation and working capital efficiency. We ended the year with a strong balance sheet and net cash position of $101.8 million, demonstrating our continued focus on maintaining financial flexibility. Importantly, our restructuring initiatives are on track to deliver the anticipated cost savings, positioning us to achieve substantially higher profitability as revenues recover. During 2024, we successfully executed on several key strategic priorities. First, we optimized our production footprint, now sourcing over 70% of our production from our global network of manufacturing partners compared to just 22% at the beginning of 2023. This transformation has enhanced our operation flexibility and ability to align production with demand while maintaining resilient EBITDA and gross margins, even as our revenue reflects persistent global market headwinds. Second, we strengthened our innovation capabilities, particularly in expanding our crystalline silica free offering globally. We have made substantial progress in developing these products that comply with regulatory requirements in Australia and expect to have our full collection available in that market by the end of the first quarter 2025. Third, we continue to invest in our porcelain business, which we view as an important growth driver. Given our strong conviction in the future growth potential of the porcelain market, we plan to acquire the remaining equity interest in Loyoli Ceramica in the first half of 2025, increasing our ownership to 100%. Looking more closely at our fourth quarter results, revenue was $97.9 million, reflecting competition and softness across our main markets. The benefits of our enhanced operational framework were evident in our gross margin performance, which improved 130 basis points year-over-year to 19.4%. This improvement reflects the positive impact of our restructuring actions and optimized production footprint. As we look ahead to 2025, while near-term market conditions remain dynamic, we are confident that our strategic initiatives and disciplined execution have created a more agile and efficient organization ready to capitalize on market opportunities. I will now turn the call over to Nahum to review our financial results in more detail.