Caesarstone Ltd (CSTE) 2023 Q3 法說會逐字稿

Greetings and welcome to the Caesarstone third-quarter 2023 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 (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加凱撒金石 2023 年第三季財報電話會議。此時，所有參與者都處於只聽模式。正式演示之後將進行簡短的問答環節（操作員說明） 謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Brad Clay, Investor Relations. Thank you. You may begin.

現在我很高興向您介紹主持人，投資者關係部布拉德·克萊 (Brad Clay)。謝謝。你可以開始了。

Thank you, operator, and good morning to everyone on the line. I am joined by Yosef Shiran, Caesarstone's, Chief Executive Officer; and Nahum Trost, Caesarstone, 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 the 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 20 F and subsequent filings with the SEC.

謝謝您，接線員，祝線路上的每個人早安。與我一同出席的還有 Caesarstone 執行長 Yosef Shiran；凱撒斯通財務長內厄姆‧特羅斯特 (Nahum Trost)。今天電話會議中的某些陳述以及對各種問題的答覆可能構成前瞻性陳述。我們提醒您，此類陳述僅反映公司目前的預期，實際事件或結果可能存在重大差異。欲了解更多信息，請參閱公司最新 20 F 表格年度報告以及隨後向 SEC 提交的文件中包含的風險因素。

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. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures can be found on the company's third quarter 2023 earnings release, which is posted on the company's Investor Relations website.

此外，在這次電話會議上，該公司將參考某些非公認會計準則財務指標，包括調整後淨虧損、收入、調整後每股淨虧損收入、調整後毛利、調整後 EBITDA 和固定匯率。這些非 GAAP 衡量標準與最直接可比較的 GAAP 衡量標準的調整可以在公司投資者關係網站上發布的公司 2023 年第三季財報中找到。

Thank you. And I would now like to turn the call over to your Yos. Please go ahead.

謝謝。我現在想把電話轉給你的 Yos。請繼續。

Thank you, Brad. Good day and thank you, everyone, for joining us to discuss our third quarter results. I will discuss our business activity and Nahum will then cover additional details regarding our financial results before we open the call for questions. I would like to start by expressing that we are saddened by the horrific acts of vicious violence and Tarot that have occurred in Israel on October 7.

謝謝你，布拉德。美好的一天，感謝大家加入我們討論我們的第三季業績。在我們開始提問之前，我將討論我們的業務活動，內厄姆將介紹有關我們財務表現的更多細節。首先我謹表示，我們對10月7日在以色列發生的惡性暴力和塔羅牌的可怕行為感到悲痛。

We are confident that Israel will not only prevail, but will also exercise justice towards all who were involved in committing these tenuous crimes. Our thoughts are with our employees, customers and others impacted by these events. We are focused on business continuity and our global operations are running smoothly with no material impact to our strategy, Israeli production and our overall ability to continue serving customers globally.

我們相信，以色列不僅會獲勝，而且還將對所有參與犯下這些輕微罪行的人伸張正義。我們的心與我們的員工、客戶和其他受這些事件影響的人同在。我們專注於業務連續性，我們的全球業務運作順利，對我們的策略、以色列生產以及我們繼續為全球客戶服務的整體能力沒有產生重大影響。

The one aspect impacted is the market in Israel, which accounted for about 5% of our revenues in the third quarter. We remain committed to supporting the people of Israel and the rehabilitation of our affected townships, and we have decided to donate 2000 kitchen surfaces to families in the south of Israel, whose homes have been lost or damaged during the war in addition to other supporting activities.

受影響的一方面是以色列市場，該市場約占我們第三季營收的5%。我們仍然致力於支持以色列人民和受影響鄉鎮的重建，除了其他支持活動外，我們還決定向以色列南部的家庭捐贈 2000 個廚房用具，這些家庭的房屋在戰爭期間遭到損失或損壞。 。

Now we will move to our third quarter results. We generated our third straight quarter of robust cash flow from operations, adding $28.2 million to our year-to-date total of just over $53 million. We maintained our sharp focus on executing further against our global restructuring actions. Our results improved sequentially, as we move through the quarter. And at the same time, we made significant progress with the implementation of various initiatives under our strategic plans to better utilize our resources, improve our cost structure, realign our workforce and optimize our production footprint.

現在我們將討論第三季的業績。我們連續第三個季度從營運中產生了強勁的現金流，在年初至今的總額略高於 5,300 萬美元的基礎上增加了 2,820 萬美元。我們繼續集中精力進一步執行我們的全球重組行動。隨著本季的進展，我們的業績連續改善。同時，我們在策略計畫下實施各項措施方面取得了重大進展，以更好地利用我們的資源、改善我們的成本結構、重新調整我們的員工隊伍並優化我們的生產足跡。

In regard to production optimization, we are on schedule in transitioning production of lower price point SKUs to our strategic network of third party manufacturers. We have now transitioned a significant portion of our production and expect roughly 40% of our products to be sourced by the end of the year. In addition, we are reaping the initial margin benefits from the closure of our [tortilla] manufacturing facility, which we completed during the second quarter of this year. In line with this progress, we produced significant sequential recovery in our third quarter adjusted gross margin to 19.8%. With this operating improvement translating into positive adjusted EBITDA of $1.9 million.

在生產優化方面，我們正按計劃將較低價位 SKU 的生產轉移到我們的第三方製造商策略網絡。我們現在已經完成了很大一部分生產的轉型，預計到今年年底我們將採購約 40% 的產品。此外，我們還從關閉我們的[玉米餅]製造工廠中獲得了初步利潤，該工廠於今年第二季度竣工。與這一進展一致，我們第三季調整後毛利率實現了顯著的環比復甦，達到 19.8%。這項營運改善轉化為 190 萬美元的正調整 EBITDA。

Concurrently, we are navigating through complex market dynamics, including competitive landscape, challenging global economic conditions and softer trends in renovation and remodel activity across our global footprint. We are working through this challenging environment with an aim to drive higher sales. We are addressing our pricing structure, investing prudently in sales and marketing and elevating our R&D efforts to create an exciting area of innovative collections that are on track to launch in the coming months.

同時，我們正在應對複雜的市場動態，包括競爭格局、充滿挑戰的全球經濟狀況以及我們全球足跡中翻新和改建活動的疲軟趨勢。我們正在應對這一充滿挑戰的環境，目標是推動更高的銷售額。我們正在解決我們的定價結構問題，在銷售和行銷方面進行審慎投資，並加強研發力度，以創建一個令人興奮的創新系列領域，這些產品預計在未來幾個月內推出。

Now I would like to take a moment to comment on recent developments in our Australian markets. [De feugo] Australia and Australian Government statutory agency recently made its report about engineered stone publicly available. This report recommends that the Australian government adopt a ban on engineered stone. The recommendation is pending federal and state government decisions on next steps.

現在我想花點時間評論一下澳洲市場的最新發展。 [De feugo] 澳洲和澳洲政府法定機構最近公開發布了有關人造石的報告。該報告建議澳洲政府採取人造石禁令。該建議有待聯邦和州政府就下一步行動做出決定。

At this time, it is difficult to predict exact outcome of the Australian government's decision on the matter and, whether the ultimate decision will be a total ban, partial ban or other. We are working diligently with our strong Australian team to maintain our market share in this market regardless of the decision.

目前，很難預測澳洲政府對此事的決定的具體結果，以及最終的決定是全面禁止、部分禁止還是其他。無論做出何種決定，我們都將與強大的澳洲團隊努力合作，以維持我們在該市場的市場份額。

In conclusion, I am proud of our team and the work that was done this past quarter, both in terms of profitability improvements and restructuring actions. I am confident we are moving in the right direction to transform our business. We now have a much stronger balance sheet that we can leverage to execute our strategy and create value.

總而言之，我為我們的團隊以及上個季度在獲利能力提高和重組行動方面所做的工作感到自豪。我相信我們正在朝著業務轉型的正確方向前進。我們現在擁有更強大的資產負債表，可以利用它來執行我們的策略並創造價值。

Thank you, and I will now turn the call over to Nahum to walk through the details of our financial performance.

謝謝，我現在將把電話轉給內厄姆，詳細介紹我們的財務表現。

Thank you, Yos, and good morning, everyone. Looking at our third-quarter results, global revenue in the third quarter was $142.4 million compared to $180.7 million in the third quarter of last year. The decrease of 21.2% was primarily driven by softer global market conditions, particularly in the North American renovation and remodel channels, mainly as a result of higher interest rate, which has impacted residential spending.

謝謝你，Yos，大家早安。從我們第三季的業績來看，第三季的全球營收為 1.424 億美元，而去年第三季的全球營收為 1.807 億美元。下降 21.2% 的主要原因是全球市場狀況疲軟，尤其是北美翻新和改建渠道，主要是由於利率上升影響了住宅支出。

In addition, our sales were also impacted by the competitive landscape for our product. The impact of softer residential sales activity, which slowed down commencing in the second half of 2022 has been more pronounced in our results since the second quarter of this year. On a constant currency basis, third quarter revenue was down 20.3%. 0.9% difference between the USD revenues and the constant currency revenues reflect the impact of strong USD against our revenues generated in all other markets outside of the US

此外，我們的銷售也受到產品競爭格局的影響。自 2022 年下半年開始，住宅銷售活動放緩，其影響在我們今年第二季以來的業績中更加明顯。以固定匯率計算，第三季營收下降 20.3%。美元收入與固定貨幣收入之間 0.9% 的差異反映了強勢美元對我們在美國以外所有其他市場產生的收入的影響

In the US, sales were down 24.8%, mainly tied to softer residential end markets, particularly fulfilled by the distributors. This was partially offset by higher year-over-year sales with big box customers and improved performance in our commercial business. In our other larger markets, Canada sales were lower by 17.5% on a constant currency basis experiencing similar market dynamics, as in the US.

在美國，銷售額下降了 24.8%，主要與住宅終端市場疲軟有關，尤其是經銷商的銷售。這被大型客戶的年銷售額增加和商業業務業績的改善所部分抵消。在我們其他較大的市場中，加拿大的銷售額以固定匯率計算下降了 17.5%，經歷了與美國類似的市場動態。

Australia sales were off by roughly 8.4% on a constant currency basis, reflecting slower market conditions, although to a lesser extent. Looking at our third quarter P&L performance. I will start by noting that we produced a significantly higher sequential gross margin as promised. Our gross margin was 19.1% for the quarter and the adjusted gross margin was 19.8%, which was similar to our gross margin of 19.7% in the first quarter on lower revenues.

以固定匯率計算，澳洲銷售額下降約 8.4%，反映出市場狀況放緩，但幅度較小。看看我們第三季的損益表。首先我要指出的是，我們按照承諾實現了顯著更高的連續毛利率。我們本季的毛利率為 19.1%，調整後的毛利率為 19.8%，與第一季營收較低的 19.7% 的毛利率相似。

Gross margin was lower compared to the 23% in the prior-year quarter. The year-over-year decrease in margin mainly reflected the impact of lower revenues, increased manufacturing unit cost driven by lower fixed cost absorption, mainly related to lower capacity utilization. These factors were partially offset by lower shipping costs and the benefits of our improved production footprint.

毛利率低於去年同期的 23%。利潤率年減主要反映了收入下降、固定成本吸收下降導致製造單位成本增加的影響，這主要與產能利用率下降有關。這些因素被較低的運輸成本和我們改善生產足跡的好處部分抵消。

Operating expenses in the third quarter were $29.2 million compared to $38.5 million in the prior-year quarter. Excluding legal settlements, loss contingencies and restructuring expenses, adjusted operating expenses were 23.7% of revenue compared to 20.9% in the prior year quarter. The higher percentage mainly resulted from lower revenues.

第三季營運費用為 2,920 萬美元，去年同期營運費用為 3,850 萬美元。不包括法律和解、意外損失和重組費用，調整後的營運費用佔收入的 23.7%，而去年同期為 20.9%。較高的百分比主要是由於收入較低。

Adjusted EBITDA in the third quarter was $1.9 million, improved sequentially compared to the second quarter, in line with our plan to get adjusted EBITDA back to profitability in the second half of the year. The sequential improvement primarily reflects strong operating results for the quarter.

第三季調整後 EBITDA 為 190 萬美元，比第二季環比有所改善，符合我們下半年調整後 EBITDA 恢復獲利的計畫。環比改善主要反映了本季強勁的營運表現。

Turning to our balance sheet. This is a strong balance sheet as of September 30th, 2023, included cash, cash equivalents and short-term bank deposits and short-term marketable securities of $79.1 million, with the total debt to financial institutions of $6.9 million. During the third quarter, we generated positive cash flow from operations of $28.2 million, mainly driven by our inventory reduction efforts. This compares to cash flow of $3.5 million in the third quarter of 2022. Our net cash position as of September 30th, 2023, was $72.2 million compared to $49 million as of June 30, 2023, and $28.2 million as of December 31st, 2022.

轉向我們的資產負債表。截至 2023 年 9 月 30 日，資產負債表強勁，包括現金、現金等價物、短期銀行存款及短期有價證券 7,910 萬美元，金融機構債務總額為 690 萬美元。第三季度，我們的營運產生了 2,820 萬美元的正現金流，這主要得益於我們減少庫存的努力。相較之下，2022 年第三季的現金流為350 萬美元。截至2023 年9 月30 日，我們的淨現金部位為7,220 萬美元，而截至2023 年6 月30 日為4,900 萬美元，截至2022 年12 月31 日為2,820 萬美元。

In regard to the study unplanned closure, which occurred during the second quarter of 2023, we maintain our expectation to realize annualized savings of approximately $10 million to $15 million. We are still in the process of accepting bids to sublet portions of the non-cancellable lease agreement associated with the tortilla plant, which will allow us to recognize potential cash savings above and beyond anticipated $10 million to $15 million.

對於 2023 年第二季發生的研究計畫外終止，我們維持實現年化節省約 1,000 萬至 1,500 萬美元的預期。我們仍在接受與玉米餅廠相關的不可撤銷租賃協議的部分轉租投標，這將使我們能夠認識到超出預期 1000 萬至 1500 萬美元的潛在現金節省。

In regards to our outlook, we are reiterating our outlook for the full year of 2023 to generate positive cash flow from operations and to end the year with an improved net cash position. This outlook is based on inventory reductions and other working capital improvements, cost optimization efforts and our expectation for similar adjusted EBITDA in the fourth quarter compared to the third quarter of 2023. This outlook factors in a significant near-term reduction in Israel revenues due to the war on [table], which as a reminder could have an impact of up to 5% of our revenue.

就我們的前景而言，我們重申對 2023 年全年的展望，即從營運中產生正現金流，並在年底實現淨現金狀況的改善。這項展望是基於庫存減少和其他營運資本改善、成本優化工作以及我們對第四季度與2023 年第三季度相比類似的調整後EBITDA 的預期。這一展望考慮到以色列收入近期大幅下降，原因是[桌子] 上的戰爭，提醒一下，這可能會對我們的收入產生高達 5% 的影響。

In summary, our restructuring actions are progressing as planned. We have now a much stronger balance sheet, which leaves us well situated to unlock additional value in our business as we move forward.

綜上所述，我們的重組行動正在按計劃進行。我們現在擁有更強大的資產負債表，這使我們能夠在前進的過程中釋放業務的額外價值。

With that, we are now ready to open the call for questions.

至此，我們現在準備開始提問。

(Operator Instructions)

（操作員說明）

Reuben Garner, The Benchmark Company.

魯本·加納，基準公司。

Thank you. First of all, our thoughts and prayers are with the Caesarstone team, and everyone are impacted by what happened last month. I guess to start guys on if you don't mind, I was kind of thinking that maybe there would be, I know not necessarily a step function, but kind of gradual improvement in the margins from the third quarter or second to the third.

謝謝。首先，我們的思念和祈禱與凱撒石團隊同在，每個人都受到上個月發生的事情的影響。我想如果你們不介意的話，我想也許會有，我知道不一定是階梯函數，而是從第三季或第二季的利潤率逐漸提高。

And then third to the fourth, it sounds like the fourth is going to look more like the third quarter. Is that is that mostly a function of on the impact of Israel? Or is there any other factors that maybe are not leading to show improvement on a sequential basis?

然後第三季到第四季，聽起來第四季看起來更像第三季。這主要是因為以色列的影響嗎？或是否有其他因素可能不會導致連續的改善？

So in general, hi everyone, thank you. In general, the 5% or almost 5% that we will not generate in the fourth quarter, according at least to the current situation in the Israeli market will be missing in our overall results. There is also seasonality impact for sales. So, Q3 usually is higher than Q4.

總的來說，大家好，謝謝。總的來說，至少根據以色列市場目前的情況，我們在第四季度不會產生的 5% 或幾乎 5% 將在我們的整體業績中消失。銷售也受到季節性影響。因此，Q3 通常高於 Q4。

So, we expect lower revenues. And on the other side, we expect better performance in terms of cost following our restructuring plan. In addition, we are going to invest higher on marketing, so we'll have higher marketing spend. So, all in all, we expect similar EBITDA, a much better, a cost performance and a better setup for the future.

因此，我們預計收入會下降。另一方面，我們預期重組計劃後在成本方面會有更好的表現。此外，我們將在行銷方面投入更多，因此我們的行銷支出也會更高。因此，總而言之，我們期望類似的 EBITDA，更好的性價比以及更好的未來設定。

Okay. And so just to be clear, your expectation is based on your Israel business potentially going to zero in the near term. Is that right?

好的。因此，需要明確的是，您的期望是基於您的以色列業務可能在短期內為零。是對的嗎？

It's not zero. It's not zero. But first of all, we don't know yet. You know, we don't know how the world will continue to develop. So, we may on a positive side, our main job some positive result, but as it seems now the market is a quite frozen. So, we took it as close to zero.

它不是零。它不是零。但首先，我們還不知道。你知道，我們不知道世界將如何繼續發展。因此，從正面的方面來看，我們的主要工作可能會取得一些正面的成果，但現在看來市場相當凍結。因此，我們認為它接近零。

Understood.

明白了。

Hi, Reuben. It's Nahum in to add to what you've said. So, despite the near-term reduction in the Israeli revenues, we expect to see the normal seasonality that we used to seeing in previous deals be, I mean before COVID before, before any unusual events. But so, despite the reduction in these revenues, we expect to see the normal seasonality in Q4, and this is something that should be taken into consideration.

嗨，魯本。內厄姆（Nahum）來補充你所說的內容。因此，儘管以色列的收入近期有所減少，但我們預計會看到我們在先前的交易中看到的正常季節性，我的意思是在新冠疫情之前，在任何異常事件之前。但是，儘管這些收入有所減少，但我們預計第四季度將出現正常的季節性，這是應該考慮的因素。

Got it. And in the prepared remarks, you mentioned up to 40% of your product being manufactured by third party vendors by year end, what would that number look like coming into 2023?

知道了。在準備好的發言中，您提到到年底您的產品將有多達 40% 由第三方供應商製造，到 2023 年這個數字會是什麼樣子？

A 40% is in terms of our production in terms of sales, it's a bit less because there is a time differences, in terms of sales coming into 2023. It was around 20% in we see a gradual increase over the previous quarter, and we expect to see another increase gradual increase in Q4 of this year. But again, 40% is a production and not sales, sales will be lower than 40.

40% 是我們的生產量，就銷售額而言，這個比例要少一些，因為就2023 年的銷售額而言，存在時間差異。大約是20%，因為我們看到比上一季度逐漸增長，而我們預計今年第四季將再次逐步成長。但同樣，40%是生產而不是銷售，銷售額將低於40。

Okay. And you mentioned pricing, I can't remember the term used, but there is pricing optimization or pricing initiatives of some kind. And then I know you talked about marketing a couple of times or is your product price to highly in the market to compete in this environment?

好的。你提到了定價，我不記得使用的術語，但有定價優化或某種定價舉措。然後我知道您多次談到行銷，或者您的產品價格是否在市場上處於較高水平以在這種環境下競爭？

What exactly are you leading to there? And then what are their specific geographies where the marketing expenses being ramps? What's the kind of, I guess, dollar spend and what the benefit is expected to be from those investments?

你究竟要去那裡做什麼？那麼他們的行銷費用在哪些特定地區增加呢？我想，美元支出是多少？這些投資預計會帶來什麼好處？

Yes. So, there are a few aspects. So first of all, the marketing expenses mainly aimed at the US market, but also to other markets so, we are trying to increase our marketing spend in order to elevate the brand and to reach traditional customers.

是的。那麼，有幾個方面。所以首先，行銷費用主要針對美國市場，但也針對其他市場，所以我們正在努力增加行銷費用，以提升品牌並接觸傳統客戶。

In terms of, say, of the production in our strategic partners and third-party strategic partners. So, we estimate next year to be around 50%. So, 50% of our production will be produced by our partners. So, this will allow us to be more competitive. And this will allow us to approach additional channels that we in the past.

就我們的策略夥伴和第三方策略夥伴的生產而言。因此，我們預計明年將達到 50% 左右。因此，我們 50% 的產量將由我們的合作夥伴生產。因此，這將使我們更具競爭力。這將使我們能夠接觸到過去的其他管道。

We neglected and are now open to us. And in addition to that, we are investing a lot in innovation, and this will allow us to compete better in across all the field also in the higher end Middle end and in the lower end. So, this is in a nutshell.

我們忽視了，現在對我們開放了。除此之外，我們在創新方面投入了大量資金，這將使我們能夠在所有領域（包括高端、中端和低端）更好地競爭。簡而言之。

And those the channels, is that big box retail in the US? Is that what channels are you leading to?

那些管道，是美國的大型零售店嗎？這是您通往的渠道嗎？

No, some channels, yeah, mainly the commercial channels, when I say maybe not neglected, but maybe we went out of most of the commercial channel in the States. So, we are going to get back to their, but also to reinforce our other channel, which includes the of course, big box, but also retail, Kitchen and Bath and Hindustan suppliers that also performed quite bad in the last year.

不，有些管道，是的，主要是商業管道，當我說也許沒有被忽視時，但也許我們已經退出了美國的大部分商業管道。因此，我們將回到他們的管道，同時也加強我們的其他管道，當然包括大賣場，但也包括零售、廚房和浴室以及印度斯坦供應商，這些供應商在去年也表現不佳。

Great. Thanks for the detail, guys, and stay safe. Good luck to the rest of the year.

偉大的。感謝您提供的詳細信息，夥計們，請注意安全。祝今年剩下的時間一切順利。

Thank you.

謝謝。

Thanks.

謝謝。

Stanley Elliott. Stifel.

史丹利·艾利奧特.斯蒂菲爾。

Hey, everybody. Nice to hear your voice. Thank you for the question. Can you talk about how you see working capital as a percent of sales longer term? I mean, you've done a nice job of pulling inventory out of you relative to historical levels that would look like you'd still have some ways to go.

嘿，大家。很高興聽到你的聲音。感謝你的提問。您能談談您如何看待營運資金佔長期銷售額的百分比嗎？我的意思是，相對於歷史水平，你在減少庫存方面做得很好，看起來你還有很長的路要走。

And now with the model transforming to more of a kind of a third-party import model for a larger part of the revenue base. Just curious, where we think working capital could end up here for this for the business?

現在，該模式更多地轉變為第三方進口模式，以獲取更大部分的收入基礎。只是好奇，我們認為營運資金最終會花在哪裡？

And it's Nahum. I will say, we improved working capital specifically in terms of the inventory levels that were elevated last year, now we are back to a normalized level, more or less around the 120 inventory days. And we believe, as you said, rightfully that there is still room for improvement and we are aiming, to be an area of around 100 days of inventory. In general, in terms of percentage of working capital out of revenues, we expect to be around 25% working capital out of revenues.

這是內厄姆。我想說的是，我們改善了營運資本，特別是去年提高的庫存水平，現在我們回到了正常水平，大約在 120 個庫存天數左右。正如您所說，我們相信仍有改進的空間，我們的目標是庫存量達到 100 天左右。整體而言，就營運資本佔收入的百分比而言，我們預期營運資本將佔收入的比例約為 25%。

Perfect. And the comment on the competitive landscape, is that just market? Did you find you maybe we're were priced too high in certain skew categories? And then just kind of any detail around kind of the price versus volumes in the quarter that you might have seen in the US specifically?

完美的。對於競爭格局的評論，這只是市場嗎？您是否發現我們在某些​​偏斜類別中的定價可能過高？然後是關於您可能在美國看到的本季度價格與銷量的任何細節嗎？

So, still Stanley, we believe that the decreasing volume are mainly related to the soft market conditions on the back of higher inflation globally, not only in the US, so the results in other regions as well. So, it's on the back of higher inflation and on the back of higher interest rate, which results in a way in residential customers postponing certain projects or renovation projects.

因此，史丹利仍然認為，成交量下降主要與全球通膨上升導致的市場疲軟有關，不僅是美國，其他地區的結果也是如此。因此，這是在通貨膨脹和利率上升的背景下，導致住宅客戶推遲某些項目或改造項目。

So, this is the major impact that we saw globally and in the US. On the other hand, we saw some positive signs. As we said in the big box channel, we are starting to see positive signs in the commercial channels, as Yosef mentioned earlier, so this is on the other end.

所以，這是我們在全球和美國看到的重大影響。另一方面，我們也看到了一些正面的跡象。正如我們在大盒子渠道中所說，我們開始在商業管道中看到積極的跡象，正如約瑟夫之前提到的，所以這是在另一端。

If the big box channel actually with interesting comment, I mean, you I think they've talked about their day sales being down modestly. You was your comment really more of incremental skew. So, you're doing better in that market or maybe it's just performing better than some of the fabricators, which you mentioned we're or having a bit more of a struggle.

如果大盒子頻道實際上有有趣的評論，我的意思是，我認為他們已經談到了他們的每日銷售額適度下降。你的評論實際上更多的是增量傾斜。所以，你在那個市場做得更好，或者可能只是比一些製造商表現得更好，你提到我們正在或有更多的掙扎。

No. So, our portion there is quite a is quite small. So, we have a lot of potential growth and it's a matter of focus and offering the right offer to the different consumers, including big boxes, not only and also commercial contractors and others for.

不，所以，我們的份量相當小。因此，我們有很大的潛在成長，這是一個重點問題，並為不同的消費者提供合適的產品，不僅包括大盒子，還包括商業承包商和其他人。

So, as to the market, just to add to what Nahum said. So, the a part of the market decline, of course, also the competition accelerates under this situation because everybody is fighting for the same dollars, so I think that's, we on the sale we suffer from the market situation and also increasing competition. However, we are doing many things that, we believe will allow us to perform better than the market in the future.

因此，就市場而言，我只是補充一下內厄姆所說的內容。因此，市場下降的一部分當然，在這種情況下競爭也會加速，因為每個人都在爭奪同樣的美元，所以我認為，我們在銷售方面受到市場狀況和競爭加劇的影響。然而，我們正在做的許多事情，我們相信將使我們在未來的表現優於市場。

Great, guys, that's it for me. Thanks so much. Best of luck.

太好了，夥計們，這就是我的了。非常感謝。祝你好運。

Thank you very much.

非常感謝。

Thank you.

謝謝。

This concludes our question-and-answer session. I would like to turn the conference back over to Yosef Shiran for closing remarks.

我們的問答環節到此結束。我想將會議轉回由 Yosef Shiran 致閉幕詞。

Thank you, and thank you all for your attention this morning, and we look forward to updating you on our progress next quarter. See you.

謝謝大家，感謝大家今天早上的關注，我們期待向您通報下個季度的最新進展。再見。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。