Alrosa, the global leader in rough diamond production, has reported its revenue rose by 58% to £1.1bn driven by an improved product mix and higher average selling prices.
The company’s rough diamond sales also grew by 43% to 13.4 million carats amid a production decrease of 26%. The growth was due to sales of around 6 million carats from company’s stocks.
EBITDA grew by 78% to £574m mainly driven by an upward trend in revenue and cost control initiatives. The company’s Q1 net profit amounted to £397m.
Alrosa’s net debt for the quarter fell to £222m on the back of stronger free cash flow and proceeds from the sale of its gas assets.
Sergey Ivanov, CEO and chairman of the executive committee said: “Alrosa’s excellent financial performance in Q1 2018 is largely due to improved market conditions, which we were able to fully benefit from, and stringent cost control.”