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(Kitco News)-Russian diamond giant Alrosa, a global leader in diamond mining, today announced that its revenue for the second quarter of 2021 will increase by 3% from the previous quarter to 94 billion rubles (approximately US$1.3 billion), which is affected by the recovery of similar products Push-similar rough diamond prices (+7%) and better sales mix, as well as strong sales of polished diamonds, including unique Spectacle diamonds.
The company stated that the 9-fold year-on-year increase in revenue was due to a lower base in the second quarter of 2020 (60,000 carats in the second quarter of 2020, compared to 1.14 million carats in the second quarter of 2021). The company's revenue in the first half of 2021 increased 2.5 times to 184 billion rubles (approximately 2.5 billion US dollars), which was mainly due to a 2.7-fold increase in sales.
Driven by the increase in average realized prices, the company's EBITDA increased by 36% from the previous month to 46 billion rubles (approximately US$600 million). In the first half of 2021, EBITDA increased by 2.6 times to 79 billion rubles (approximately 1.1 billion US dollars). Due to strong sales returns, net profit increased by 26% from the previous quarter to 30.2 billion rubles (approximately US$400 million).
The company stated that demand for diamond jewelry continued to grow in the second quarter of 2021, with the United States and China (including Hong Kong) growing at an average rate of 35% and 15%, respectively.
ALROSA added that given the continued optimism of consumers and their increasing interest in diamond jewelry, it remains optimistic about the prospects of the end consumer market.
“The market is recovering faster than we expected. At the same time, diamond supply is still 20% below the level before COVID-19, and global production is unlikely to rebound in the medium term,” the company concluded.
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