Alrosa’s Q2 revenue increased 3% quarter-on-quarter to RUB 94 billion driven by a recovery in like-for-like rough diamond prices (+7%) and a better sales mix, as well as by robust sales of polished diamonds, including the unique Spectacle diamond.
The nine-fold growth on a year-on-year basis was due to the low base of Q2 2020 (0.6 million carat vs 11.4 million carat in Q2 2021). Six-monthly revenue increased 2.5x to RUB 184 billion, mainly due to a 2.7x growth in sales volumes.
Earnings before interest, tax, depreciation and amortisation (EBITDA) gained 36% quarter-on-quarter reaching RUB 46 billion, driven by higher average realised prices. 6M EBITDA went up 2.6x to RUB 79 billion.
Net profit climbed 26% quarter-on-quarter to RUB 30.2 billion on stronger return on sales. The company’s H1 net profit reached RUB 54.2 billion due to the increase in sales.
Alexey Philippovskiy, Alrosa’s CFO, said: “Q2 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 to 2019. Heading into the second half of the year, retailers note continued optimism among consumers and their increased interest in diamond jewellery.
“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.”