De Beers sales fall 21% in first half of 2015
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Diamond company De Beers has reported a total sales decrease of 21% to $3bn (£1.94bn) in the first six months of the year to June 30, 2015.
According to the first half results published by mining group Anglo American, which owns 85% of De Beers, underlying earnings before interest, taxes depreciation and amortisation (EBITDA) decreased to $792m (£511m), down from $983m (£634m) in the first half of 2014.
The company, which also saw a 21% fall in the sale of rough diamonds to $2.7bn (£1.74bn), blamed softer rough diamond demand for weaker revenue during the period, however it said that this was offset partly by lower operating costs and favourable exchange rates.
Average realised diamond prices increased by 7% to $206 (£132) per carat during the period, which De Beers said was due to the sale of a strong product mix – this was despite a 4% lower average rough price index for the period.
De Beers said in response to prevailing market conditions, the company has utilised operational flexibility at some of its mines to make adjustments to product plans. It said that production costs and overheads are being tightly managed to minimise the impact on profits of lower sales.
Meanwhile, Forevermark, the company’s diamond jewellery brand, has increased its retail presence by 13% over the last 12 months and is now available in more than 1,600 retail outlets across 35 markets.
