Alrosa sees Q2 profits reach £3.1bn amid ‘stronger’ sales
Revenue for the period also increased by 3% qoq to RUB 94bn (£9.5bn) and was primarily driven by a recovery in like-for-like rough diamond prices (7%), a better sales mix and also by ‘robust sales’ of polished diamonds
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Alrosa has reported that net profit for Q2 climbed 26% QOQ to RUB 30.2bn (£3.1bn) from RUB 24bn (£2.4bn) the previous year as the group experienced a stronger return on sales.
Revenue for the period also increased by 3% QOQ to RUB 94bn (£9.5bn) and was primarily driven by a recovery in like-for-like rough diamond prices (7%), a better sales mix and also by “robust sales” of polished diamonds.
During the period, the group said it saw a continued increase in demand for diamond jewellery, with the US and China (including Hong Kong) growing at an average of 35% and 15% respectively compared with 2019.
Alexey Philippovskiy, CFO, Alrosa, said: “The impressive sales growth vs Q2 2020 allowed us to achieve a free cash flow of RUB 12bn (£1.2bn) for the quarter and almost RUB 65bn (£6.5bn) for the first half of 2021.
“Our outlook for the end consumer market remains positive. The market is recovering faster than we predicted. Meanwhile, diamond supply is still 20% below the pre-Covid-19 levels, and the global production is unlikely to bounce back in the midterm.”
