Caesarstone Ltd (CSTE) 2024 Q2 法說會逐字稿

Greetings, and welcome to the Caesarstone Second Quarter 2024 Earnings Conference Call. (Operator Instructions) A brief question-and-answer session will follow the formal presentation. As a reminder, this conference call is being recorded.

您好，歡迎參加凱撒金石 2024 年第二季財報電話會議。（操作員說明）正式示範之後將進行簡短的問答環節。謹此提醒，本次電話會議正在錄音中。

It is now my pleasure to introduce your host Mr. Brad Cray of ICR. Please go ahead sir.

現在我很高興向大家介紹主持人，ICR 的 Brad Cray 先生。請先生繼續。

Thank you, operator, and good morning to everyone on the line. I am joined by Yos Shiran, 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.

謝謝您，接線員，祝線路上的每個人早安。Caesarstone 執行長 Yos Shiran 也加入了我的行列；以及 Caesarstone 財務長 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。

We caution you that such statements reflect only the company's current expectations 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 20-F and subsequent filings with the SEC.

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，請參閱公司最近的 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 income/loss, adjusted net loss/income per share, adjusted gross profit, adjusted EBITDA and constant currency.

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，包括調整後淨收益/虧損、調整後淨虧損/每股收益、調整後毛利、調整後EBITDA 和固定匯率。

The reconciliation of these non-GAAP measures to the most directly comparable GAAP measures can be found in the company's second quarter 2024 earnings release, which is posted on the company's Investor Relations website.

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該公司 2024 年第二季財報發布中找到，該發佈發佈在該公司的投資人關係網站上。

On today's call, Yos will discuss our business activity and Nahum will then cover additional details regarding financial results before we open the call for questions.

在今天的電話會議上，Yos 將討論我們的業務活動，然後 Nahum 將在我們開始提問之前介紹有關財務表現的其他詳細資訊。

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

謝謝。我現在想把電話轉給 Yos。請繼續。

Thank you, Brad. Good day everyone and thank you for joining us to discuss our second quarter 2024 results. Our second quarter performance demonstrates the ongoing positive impact of our strategic restructuring initiatives.

謝謝你，布拉德。大家好，感謝您加入我們討論 2024 年第二季的業績。我們第二季的業績證明了我們策略重組措施的持續正面影響。

The improvement in our gross margin compared to last year is clear indicator that our efforts to optimize our production footprint and enhance our relationships with manufacturing partners are bearing fruit and assisting us in overcoming slow market conditions across the globe.

與去年相比，我們毛利率的提高清楚地表明，我們優化生產足跡和加強與製造合作夥伴關係的努力正在取得成果，並幫助我們克服全球緩慢的市場狀況。

Current conditions are negatively affecting our revenues in the territories in which we operate primarily in the residential channel. Nevertheless, we continue to make progress on several key strategic initiatives.

目前的狀況對我們主要在住宅通路營運的地區的收入產生了負面影響。儘管如此，我們仍繼續在幾項關鍵策略舉措上取得進展。

First, we are driving cost efficiencies across our operations. The closure of our Sdot-Yam and Richmond-Hill facilities remain on track to deliver annual cost savings of approximately $20 million in 2024 and $30 million annually by next year, compared to 2023 savings in line with our previous expectations.

首先，我們正在提高整個營運的成本效率。我們的 Sdot-Yam 和 Richmond-Hill 工廠的關閉仍有望在 2024 年實現每年約 2000 萬美元的成本節省，到明年每年節省 3000 萬美元的成本，與 2023 年的節省額符合我們先前的預期。

Additionally, we are now sourcing over 60% of our production from our global network of manufacturing partners, driving margin improvements and allowing us to better align production to demand.

此外，我們現在 60% 以上的產品都是從全球製造合作夥伴網路採購的，這推動了利潤率的提高，並使我們能夠更好地根據需求調整生產。

Second, we continue to focus on sales and marketing, mainly on developing differentiated products to improve our sales mix and help mitigate pricing pressures. Third, we continue to strengthen our porcelain business.

其次，我們繼續專注於銷售和行銷，主要是開發差異化產品，以改善我們的銷售結構並幫助減輕定價壓力。第三，我們繼續做強瓷器業務。

During July, we increased our stake in our Indian porcelain facility, Lioli Ceramica, from 60% to 81%. This move underscores our commitment to strengthening our position in the porcelain market, which we see as a key growth driver for our business. Fourth, we are investing in our Indian innovation.

7 月份，我們將印度陶瓷工廠 Lioli Ceramica 的股份從 60% 增加到 81%。此舉突顯了我們對加強瓷器市場地位的承諾，我們認為瓷器市場是我們業務的關鍵成長動力。第四，我們正在投資印度的創新。

We've already developed and launched number of new zero crystalline silica product lines. We expect to more than double our zero crystalline silica offering in Australia by the end of 2024. This is particularly important as we adapt to the regulatory ban on quartz products that went into effect as of July 1 in the Australian market.

我們已經開發並推出了許多新的零結晶二氧化矽產品線。我們預計到 2024 年底，我們在澳洲的零結晶二氧化矽供應量將增加一倍以上。這對於我們適應 7 月 1 日起在澳洲市場生效的石英產品監管禁令尤其重要。

Lastly, we continue to explore ways to maximize value for our non-operational assets. We recently entered into an agreement to sell 69 acres of undeveloped land at our Richmond Hill property for approximately $10 million. We expect this transaction to close by the end of Q3 2024.

最後，我們繼續探索使我們的非營運資產價值最大化的方法。我們最近簽訂了一項協議，以約 1000 萬美元的價格出售列治文山 (Richmond Hill) 地產中 69 英畝的未開發土地。我們預計此項交易將於 2024 年第三季末完成。

We continue to evaluate opportunities to monetize the remainder of the property, which consists of 51 acres of higher value developed land and buildings. We are also finalizing the subletting of available areas within the Sdot Yam manufacturing facility. This will enable us to generate additional cash flows during 2025.

我們繼續評估剩餘財產的貨幣化機會，其中包括 51 英畝的高價值已開發土地和建築物。我們也正在完成 Sdot Yam 製造工廠內可用區域的轉租。這將使我們能夠在 2025 年產生額外的現金流。

In conclusion, despite the persistent macroeconomic challenges in the global market and the specific hurdles in the residential remodeling and renovation sectors to which our business is particularly exposed, we are making significant progress in transforming our business.

總而言之，儘管全球市場持續存在宏觀經濟挑戰，並且我們的業務尤其面臨的住宅改建和翻新行業面臨特定障礙，但我們在業務轉型方面正在取得重大進展。

Through the remainder of the year, we will focus on further reducing costs to align our expenses to the current business environment, we will continue to make strategic investments and innovate to drive improved profitability and long-term growth as the market recovers.

在今年剩下的時間裡，我們將專注於進一步降低成本，使我們的開支適應當前的商業環境，我們將繼續進行戰略投資和創新，以隨著市場的復甦推動盈利能力的提高和長期增長。

I will now turn the call over to Nahum to review our financial results in more detail.

我現在將把電話轉給內厄姆，以更詳細地審查我們的財務表現。

Thank you, Yos, and good morning everyone. Looking at our second quarter results, global revenue for the second quarter was $119.4 million, down 16.9% year-over-year, or 16.3% on a constant currency basis. The decrease was primarily driven by lower volumes, which were impacted by global economic headwinds, particularly in residential renovation and remodeling channels across our main regions.

謝謝你，Yos，大家早安。從我們第二季的業績來看，第二季的全球營收為 1.194 億美元，年減 16.9%，以固定匯率計算下降 16.3%。這一下降主要是由於受到全球經濟逆風的影響，成交量下降，特別是在我們主要地區的住宅翻新和改造管道。

This resulted in lower demand accompanied by competitive pressures. In the US, sales were down 13.8% to $59.8 million. This decline was mainly driven by softer residential end markets and less favorable product mix. However, we did see some bright spots in our commercial business and big box.

這導致需求下降並伴隨著競爭壓力。在美國，銷售額下降 13.8% 至 5,980 萬美元。這一下降主要是由於住宅終端市場疲軟和產品組合不利所致。不過，我們在商業業務和大賣場方面確實看到了一些亮點。

Canada sales were down 15.9% on a constant currency basis, experiencing similar market dynamics as the US. Australia sales were off by approximately 20.8% on a constant currency basis, mainly reflecting slower market conditions and the transition of alternative materials that comply with new regulations in Australia.

以固定匯率計算，加拿大銷售額下降 15.9%，市場動態與美國類似。以固定匯率計算，澳洲銷售額下降約 20.8%，主要反映市場狀況放緩以及符合澳洲新法規的替代材料的過渡。

Our EMEA region saw a decline of 14.9% on a constant currency basis due to slow market conditions in the UK, Sweden and our indirect EMEA business. In Israel, sales were off by 38.9% on a constant currency basis in the second quarter, mainly as a result of the war on Tehran, which has significantly reduced activity in the region.

由於英國、瑞典的市場狀況緩慢以及我們的間接 EMEA 業務，我們的 EMEA 地區以固定匯率計算下降了 14.9%。在以色列，以固定匯率計算，第二季銷售額下降了 38.9%，這主要是由於德黑蘭戰爭導致該地區的活動大幅減少。

Looking at our second quarter P&L performance, gross margin in the second quarter improved significantly to 22.9% compared to 8.3% in the prior year quarter. Adjusted gross margin was 23.8% compared to 9.6% in the prior year quarter. The increase in gross margin was primarily driven by the benefits of improved production footprint, partially offset by unfavorable product mix.

從我們第二季的損益表來看，第二季的毛利率大幅提高至 22.9%，而去年同期為 8.3%。調整後毛利率為 23.8%，去年同期為 9.6%。毛利率的成長主要是由於生產足跡改善的好處，但部分被不利的產品組合所抵銷。

It's worth noting that the gross margin in the second quarter of 2023 included number of transitory factors that were mainly associated with Sdot Yam facility closure, lower utilization in our Richmond Hill plant and operational investments related to the Australian market.

值得注意的是，2023 年第二季的毛利率包括一些暫時性因素，這些因素主要與 Sdot Yam 工廠關閉、列治文山工廠利用率較低以及與澳洲市場相關的營運投資有關。

On a normalized basis taken into account those transitory factors, our gross margin increased by nearly 800 basis points, mainly due to enhanced efficiency of our production footprint a result of our previous restructuring efforts.

在考慮到這些暫時性因素的標準化基礎上，我們的毛利率成長了近 800 個基點，主要是由於我們先前的重組努力提高了生產效率。

Operating expenses in the second quarter were $36.6 million, or 30.6% of revenue compared to $58.8 million, or 40.9% of revenue in the prior year quarter. The lower percentage is mainly due to the reduction in impairment and restructuring related expenses recorded during the second quarter of 2023 in connection with the Sdot Yam facility closure.

第二季營運費用為 3,660 萬美元，佔營收的 30.6%，而去年同期營運費用為 5,880 萬美元，佔營收的 40.9%。百分比較低的主要原因是 2023 年第二季因 Sdot Yam 設施關閉而記錄的減損和重組相關費用減少。

Excluding legal settlements, loss contingencies and restructuring expenses, operating expenses were 28.2% of revenue compared to 24.3% in the prior year quarter. In absolute dollars, these expenses were lower by $1.3 million compared to last year, but were higher as a percentage due to lower revenues.

不計法律和解、意外損失和重組費用，營運費用佔收入的 28.2%，去年同期為 24.3%。以絕對美元計算，這些費用比去年減少了 130 萬美元，但由於收入下降，百分比有所上升。

Operating loss in the second quarter was $9.3 million compared to $46.9 million in the prior year quarter, with the improvement mainly due to the higher gross margin this quarter and the impairment and restructuring related expenses recorded during the second quarter of 2023 in connection with the Sdot Yam facility closure.

第二季營運虧損為 930 萬美元，而上年同期為 4,690 萬美元，這一改善主要是由於本季毛利率較高以及 2023 年第二季記錄的與 Sdot 有關的減損和重組相關費用山藥設施關閉。

Adjusted EBITDA in the second quarter was a loss of $0.1 million compared to a loss of $13.4 million in the prior year quarter. This improvement primarily reflects the progress we've made in our restructuring efforts and cost optimization initiatives.

第二季調整後 EBITDA 虧損 10 萬美元，去年同期虧損 1,340 萬美元。這項改進主要反映了我們在重組工作和成本優化措施方面的進展。

Turning to our balance sheet, we ended the quarter with a strong liquidity position. We generated positive cash flow from operations of $10 million in the quarter, mainly driven by inventory reductions and other working capital improvements.

談到我們的資產負債表，本季末我們的流動性狀況強勁。本季我們從營運中產生了 1000 萬美元的正現金流，這主要是由於庫存減少和其他營運資本改善。

As of June 30, 2024, cash, cash equivalents and short-term bank deposits totaled to $103.6 million, with a total debt to financial institutions of $5.9 million. Our net cash position as of June 30, 2024 was $97.7 million compared to $83.5 million as of December 31, 2023.

截至2024年6月30日，現金、現金等價物及短期銀行存款總額為1.036億美元，對金融機構的債務總額為590萬美元。截至 2024 年 6 月 30 日，我們的淨現金部位為 9,770 萬美元，而截至 2023 年 12 月 31 日，我們的淨現金部位為 8,350 萬美元。

Now, I'd like to provide some additional color on few items. Regarding the closure of our Richmond Hill plant, we continue to expect this closure to contribute the EBITDA improvement in 2024 compared to 2023, mainly benefiting the second half of the year as the majority of inventories from that plant were sold already.

現在，我想為一些項目提供一些額外的顏色。關於列治文山工廠的關閉，我們繼續預計，與 2023 年相比，此次關閉將有助於 2024 年 EBITDA 的改善，主要受益於下半年，因為該工廠的大部分庫存已售出。

As offset to that benefit, we are affected by two geopolitical developments that impact our input costs. First, we are seeing an impact from increased sea freight fees, which we estimate will add roughly $3 million to $4 million per quarter. This will impact our P&L more towards Q4 of this year as the more expensive inventory is sold.

作為對這項收益的抵消，我們受到影響我們投入成本的兩個地緣政治發展的影響。首先，我們看到了海運費用增加的影響，我們估計每季將增加約 300 萬至 400 萬美元。由於出售了更昂貴的庫存，這將對我們今年第四季的損益產生更大影響。

Second, earlier this year, Turkey imposed restrictions on the export of certain materials to Israel. These trade restrictions have increased our Bar Lev plant production cost in the short-term, specifically for quartz and polyester. While we have successfully acquired alternative sources for imports, the economic terms are less favorable.

其次，今年早些時候，土耳其對某些物資向以色列出口實施了限制。這些貿易限制在短期內增加了我們巴爾列夫工廠的生產成本，特別是石英和聚酯。雖然我們已成功獲得替代進口來源，但經濟條件較不利。

We expect the higher material cost and sea freight expenses will negatively impact our operations and results as I will expand upon momentarily in our financial outlook. Lastly, I would like to provide an update on the silicosis related claims we are facing in the US.

我們預計較高的材料成本和海運費用將對我們的營運和業績產生負面影響，我將在我們的財務前景中對此進行闡述。最後，我想提供有關我們在美國面臨的矽肺相關索賠的最新資訊。

As of June 30, 2024, we are named as co-defendants among other manufacturers, distributors, and fabricators in 43 individual lawsuits filed by fabricators or their employees. Plaintiffs allege they contracted illnesses, including silicosis, during the cutting and polishing of our products.

截至 2024 年 6 月 30 日，我們在製造商或其員工提起的 43 起個人訴訟中被列為其他製造商、分銷商和製造商的共同被告。原告聲稱，他們在切割和拋光我們的產品時感染了疾病，包括矽肺病。

The first case is currently in trial, with a verdict expected in the coming days. Though we believe in our defense, it is difficult to predict the outcome of this case. While we believe an adverse verdict is only reasonably possible, such a verdict on its own would not have a material adverse impact on our financial position or results of operation.

第一個案件目前正在審理中，預計在未來幾天內做出判決。儘管我們相信我們的辯護，但很難預測此案的結果。雖然我們認為不利的判決是合理可能的，但這樣的判決本身不會對我們的財務狀況或經營業績產生重大不利影響。

The remaining 42 outstanding claims are at an early stage. While we plan to vigorously defend all these claims, we are unable to provide an estimate of their potential exposure, if any, at this time.

其餘 42 項未決索賠尚處於早期階段。雖然我們計劃積極捍衛所有這些主張，但目前我們無法估計其潛在風險（如果有）。

With all this in mind, we are reaffirming our expectation to deliver a positive operating cash flow for the full year of 2024, with the majority of positive cash flow weighted towards the first half of the year. We also reiterate our expectation to realize restructuring related cost savings of approximately $20 million in full year of 2024 and $30 million thereafter compared to a full year of 2023.

考慮到這一切，我們重申我們期望在 2024 年全年實現正營運現金流，其中大部分正現金流集中在上半年。我們也重申，我們期望與 2023 年全年相比，在 2024 年全年實現重組相關成本節省約 2000 萬美元，此後節省 3000 萬美元。

In the second half, we will face cost increases that I discussed earlier. Therefore, we are moderating our full year 2024 adjusted EBITDA outlook to be a loss in the mid-single-digit million-dollar range, mainly due to increased shipping and material costs expected in the second half of 2024.

下半年，我們將面臨我之前討論過的成本增加。因此，我們將 2024 年全年調整後 EBITDA 前景下調至百萬美元中個位數虧損，這主要是由於預計 2024 年下半年運輸和材料成本增加。

This outlook also assumes similar market conditions and demand in the second half of 2024 as compared to the first half.

該展望也假設 2024 年下半年的市場狀況和需求與上半年相似。

In conclusion, while we continue to navigate global market headwinds, we believe we are making significant progress in our strategic transformation. Our focus on cost efficiencies, optimizing our production footprint, and strategic investments in sales, marketing, and R&D, position us well to drive improved profitability as market conditions stabilize.

總之，在我們繼續應對全球市場逆風的同時，我們相信我們的策略轉型正在取得重大進展。我們注重成本效率、優化生產佈局以及在銷售、行銷和研發方面的策略性投資，這使我們能夠在市場狀況穩定時提高獲利能力。

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

至此，我們現在準備開始提問。

Thank you. We will now begin the question and answer session to ask a question. (Operator Instructions) Reuben Garner, The Benchmark Company.

謝謝。我們現在開始問答環節來提問。（操作員說明）Reuben Garner，Benchmark 公司。

Thanks. Good afternoon guys.

謝謝。各位下午好。

Good morning.

早安.

I guess let's start with the change in the guidance. Nahum, you mentioned shipping costs. Can you give us a little more detail there? Do you plan to take any additional pricing actions to help? And it's just, there's just a lag or is that not appropriate, are they kind of one time and you expect them to, I guess, retrace going into the next year?

我想讓我們從指南的變化開始。Nahum，你提到了運費。您能給我們更多細節嗎？您是否計劃採取任何額外的定價措施來提供協助？只是，只是有一個滯後，或者是不合適的，他們是不是只有一次，我猜，你希望他們回溯到下一年？

Hi Reuben. So the increase in shipping cost we expected in the second half to impact the results to an area of as we mentioned, $3 million to $4 million per quarter. And in addition to that, we have also the negative impact from sourcing of raw materials. So those two items are going to impact our second half, second half of the year.

嗨魯本。因此，我們預計下半年運輸成本的增加將影響我們所提及的每季 300 萬至 400 萬美元的業績。除此之外，我們也受到原物料採購的負面影響。所以這兩項將影響我們今年下半年。

On the other hand, there are additional savings that are coming from the previous restructuring actions that we took. Specifically, the more expensive inventory from Richmond Hill, which was sold almost in full by mid-year.

另一方面，我們先前採取的重組行動也帶來了額外的節省。具體來說，是列治文山 (Richmond Hill) 更昂貴的庫存，到年中幾乎已售完。

So we expect to generate more saving and this will partially offset the higher expenses from the shipping and the raw materials that we've mentioned.

因此，我們預計會產生更多節省，這將部分抵消我們提到的運輸和原材料的較高費用。

Yes. But also to add maybe that the shipping costs at this stage is very high and one could expect that at some stage it will go down in significant amount. We don't know exactly how much and when, but today it's above the normalized levels.

是的。但也要補充一點，現階段的運輸成本可能非常高，可以預期在某個階段它會大幅下降。我們不知道確切的數量和時間，但今天它高於正常水平。

Okay. And then you mentioned the assumption for the second half is a similar demand environment to the first. Does that mean similar revenue dollar amounts in the second half compared to the first half? Or was that a year-over-year comparison comment?

好的。然後您提到下半年的需求環境與上半年類似。這是否意味著下半年的收入金額與上半年相似？還是這是逐年比較的評論？

No, the comment was compared to the market dynamics that we saw in the first and second quarter. So this is the assumption, also currently the assumption that we, that we are using for the second half.

不，該評論是與我們在第一季和第二季看到的市場動態進行比較的。這是我們的假設，也是目前下半年所使用的假設。

Okay. And if things do deteriorate, and there have been some signs, at least here in the States that things may be softened over the course of the summer, if things do deteriorate globally, you've already undergone a restructuring.

好的。如果情況確實惡化，並且有一些跡象表明，至少在美國，情況可能會在夏季有所緩和，如果全球情況確實惡化，那麼你已經經歷了重組。

Do you have more that you could do to take out costs? Where does your utilization kind of rate stand today? And I guess what would those future actions look like if they were needed?

您還有更多可以採取的措施來降低成本嗎？您目前的利用率如何？我想如果需要的話，未來的行動會是什麼樣子？

Yes, one of the biggest advantage of the new setup, which makes us more agile is the ability to reduce cost. We have less fixed costs, so we can better control the ongoing cost. And in addition if things turn out to be more positive than we expect, we can relatively ramp up the capacity quite fast without the necessity of deploying money. So yes, we are more agile and we can adjust.

是的，新設置的最大優勢之一是能夠降低成本，這使我們更加敏捷。我們的固定成本較少，因此我們可以更好地控制持續成本。此外，如果情況比我們預期的更積極，我們可以相對快速地提高產能，而無需部署資金。所以，是的，我們比較敏捷，我們可以調整。

So is there a way to think about what decremental margins would look like from here? If you see another, I don't know, 10% decline in volume, what kind of impact that has on profitability?

那麼有沒有一種方法可以考慮從這裡開始的遞減邊距會是什麼樣子呢？如果你看到另一個，我不知道，成交量下降10%，這對獲利能力有什麼樣的影響？

No, we are not providing information on sensitivity of the gross margin. But you can look at previous quarters and you can see on one hand the improvement in margins after the restructuring actions that we took compared to the level of revenues that we generated in those quarters.

不，我們不提供有關毛利率敏感性的資訊。但你可以看看前幾季度，一方面，與我們在這些季度產生的收入水平相比，我們採取重組行動後的利潤率有所改善。

Just maybe to add up to that, the gross margin this quarter compared to the second quarter of last year was higher. Part of it relates to transitory factors that we had last year associated with the closure of the production here in Sdot Yam facility.

也許加起來，本季的毛利率比去年第二季更高。部分原因與我們去年關閉 Sdot Yam 工廠生產有關的暫時性因素有關。

So, if you exclude it, we were last year at the rate of around 15% of gross margin and this year, under the current volume, we generated almost 23% of gross margin. The majority of it relates to the restructuring actions that we took during the year. So you can -- I believe it can help you to calculate the sensitivity.

因此，如果排除這一因素，我們去年的毛利率約為 15%，而今年，在目前的銷量下，我們的毛利率幾乎達到 23%。其中大部分與我們在這一年中採取的重組行動有關。所以你可以——我相信它可以幫助你計算靈敏度。

Great. That's helpful. Thank you, guys. Good luck going forward.

偉大的。這很有幫助。謝謝你們，夥計們。祝你未來好運。

Thank you very much.

非常感謝。

Thank you.

謝謝。

Stanley Elliott, Stifel.

史丹利·艾利奧特，史蒂菲爾。

Hi, guys, this is Andrew Maser on for Stanley. Thank you for taking my question. I just had a quick one about the other portion of the Richmond Hill plot of land. Wondering if you had any best guess on what you could maybe receive for that portion of it.

大家好，我是史丹利的安德魯馬瑟。感謝您回答我的問題。我剛剛快速了解了里士滿山塊的另一部分。想知道您是否對這部分內容可能會收到什麼有最好的猜測。

So, as we mentioned also in previous calls, we believe it's in the area of several tens of millions of dollars. As we mentioned in the call, we sold the undeveloped part of our site for $10 million. This is the undeveloped, the other part is the developed, including the building. And all in all, we believe we will be able to get, as I said, several tens of millions of dollars.

因此，正如我們在之前的電話中提到的那樣，我們認為其金額約為數千萬美元。正如我們在電話中提到的，我們以 1000 萬美元的價格出售了網站未開發的部分。這是未開發的部分，另一部分是已開發的，包括建築物。總而言之，正如我所說，我們相信我們將能夠獲得數千萬美元。

Got you. And is there any update you can provide on the monetization of the Israel facility?

明白你了。您可以提供有關以色列設施貨幣化的任何更新嗎？

Yes, as Yos mentioned in his part so we basically established the majority of the available areas here in Sdot Yam plant. And we will start to benefit from it, not on the P&L side, but we will start to benefit from it from a cash flow point of view commencing 2025. It will be in the area of several millions of dollars compared to this year.

是的，正如 Yos 在他的部分中提到的那樣，我們基本上在 Sdot Yam 工廠建立了大部分可用區域。我們將開始從中受益，不是在損益方面，而是從 2025 年開始從現金流的角度來看。與今年相比，這一數字將達到數百萬美元。

And then lastly, I was wondering if you could expand on your decision to increase your stake in the Lioli Ceramica business. Just any more details you could provide on timing or anything, really. Thanks.

最後，我想知道您是否可以擴大您在 Lioli Ceramica 業務中增持股份的決定。只是你可以提供更多關於時間或任何事情的細節，真的。謝謝。

So, porcelain is a very important part of our growth plans. And our plant in India is a good plant and we believe we can get a lot out of it. So far, we haven't seen a lot, but we believe with the initiatives that we are taking during this year, and also continue next year, we will start to see – we will start to see profits from this site and sales.

因此，瓷器是我們成長計畫中非常重要的一部分。我們在印度的工廠是一家很好的工廠，我們相信我們可以從中獲益匪淺。到目前為止，我們還沒有看到很多，但我們相信，透過我們今年採取的舉措以及明年繼續採取的舉措，我們將開始看到 – 我們將開始看到來自該網站和銷售的利潤。

So far, we see sales, but it's relatively low. And we had 60% of the venture. We decided to increase it to 81% and to buy one of the partners, which brings us, as I said, to 81%.

到目前為止，我們看到了銷售額，但相對較低。我們擁有該合資企業 60% 的股份。我們決定將其持股比例提高到 81%，並收購其中一個合作夥伴，正如我所說，這使我們的持股比例達到 81%。

So we are very happy with this move. It was tough negotiation. And once we see that our expectations are starting to mature, we will report more. So far, it's not so significant, but it's very significant, strategic wise. Yes, so this is what I can say about Lioli. If you have any more questions around it, I will be happy to answer.

所以我們對這舉動非常滿意。這是一場艱難的談判。一旦我們看到我們的期望開始成熟，我們將報告更多內容。到目前為止，它還不是那麼重要，但它非常重要，具有戰略意義。是的，這就是我對 Lioli 的評價。如果您還有其他疑問，我將很樂意回答。

I guess, from a margin standpoint, is there anything investors should think about as far as margin mix related to that increased stake and then the porcelain roll out over time? Thanks.

我想，從利潤的角度來看，就與增加股份相關的利潤組合以及隨著時間的推移瓷器的推出而言，投資者是否應該考慮什麼？謝謝。

I don't think that -- at this stage I don't think it will be material. So, yes, you will not see it -- you will not see a lot of it in the P&L in the short term.

我不認為——在現階段我認為這不會是實質的。所以，是的，你不會看到它——短期內你不會在損益表中看到很多它。

Got you. That's all from me. So thank you.

明白你了。這就是我的全部。所以謝謝你。

Thanks.

謝謝。

Thank you very much.

非常感謝。

This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Yos Shiran for any closing remarks. Please go ahead, sir.

我們的問答環節到此結束。我想將會議轉回由 Yos Shiran 先生發表閉幕詞。請繼續，先生。

So, thank you everybody for your attention this morning. And we look forward to updating you on our progress next quarter. Goodbye.

所以，謝謝大家今天早上的關注。我們期待在下個季度向您通報我們的最新進展。再見。

Thank you.

謝謝。

Thank you for attending today's presentation. You may now disconnect.

感謝您參加今天的演講。您現在可以斷開連線。