Alrosa has announced that revenue in its fourth quarter doubled to RUB 98.6bn (£512m), a 53% rise against the prior year, on the back of “strong” demand recovery towards the year-end.
For its full-year of trading, revenue was down only 7% RUB 221.5bn (£2.1bn).
Net profit also increased in the final quarter, rising to RUB 21.3bn (£206m), largely driven by top line growth. For the full-year, however, net profit stood at RUB 32.2bn (£311m), down 49% against 2019.
Fourth quarter sales totalled 17 million cts in total, 3.4x more than the previous quarter, and 2.1x up on the previous year. This helped to boost the company’s overall financials in the quarter, with EBITDA also reaching RUB 32bn (£309m) in the period.
Looking ahead, the mining group said it expects to produce 31.5 million cts in 2021.
Alexey Philippovskiy, Alrosa’s CFO: “In Q4, we saw a continued recovery in demand for diamonds primarily driven by steady demand for diamond jewelry from end consumers.
“At the end of 2020 and during the Christmas holiday season, sales in the key US and China markets were growing at double-digit rates year-on-year.”
He added: “The recovery of sales allowed the company to begin intensive deleveraging efforts in Q4, which included an early repayment of two bank loans in the total amount of $275m (£197m) and a scheduled redemption of the remaining $494m (£354m) Eurobond placed in 2010.”