Sarine Technologies reported revenues of $21.87 million for the six months that ended 30th June 2024, down 7.8% year-on-year owing to a slowdown in the natural diamond manufacturing industry due to persistent weak demand from China and the ongoing LGD disruption in the US market.
The Indian market, which accounts for over half of Sarine’s sales, saw a 15% drop in H1 revenues to $11.15 million.
The LGD segment experienced significant turmoil with plunging wholesale and retail prices amidst surging production and slowing adoption.
While sales of traditional capital equipment declined, the company offset this with an 11% increase in recurring revenues, now accounting for over 70% of total revenue.
New initiatives introduced in early 2024, including the Most Valuable Plan™ (MVP) for optimising small rough diamonds, the adaptation of rough planning technologies to LGD, and the launch of AutoScan™ Plus and Sarine Diamond Journey™, contributed significantly to the growth in recurring revenues. The company also opened a GCAL by Sarine lab in India to serve the burgeoning LGD industry.
Sarine’s net profit rose 7.2% to $1.02 million in H1 2024. The stability in profitability in H1 2024 despite lower sales was mainly due to product mix and cost reduction actions, it noted.