Diamond mining major Alrosa’s full year 2021 revenue grew by 50% to RUB 332 billion ($3.36 billion) on the back of a 42% increase in total rough diamond sales and the gem diamonds price index gaining 13%.
The firm’s Q4 revenue dropped 28% year-on-year to RUB 71 billion ($717 million) due to comparison against the high base of Q4 2020 (in which it sold 17 million carats, including 9.9 million carats from inventories). The company’s Q4 revenue fell 8% versus the preceding Q3 2021 due to change in the sales mix, it noted. However, the drop in sales was partially offset by higher prices and a rise in sales volumes.
Alrosa’s full year sales saw a 1.4x increase up to a record high of 45.5 million carats, including 1.4 million carats purchased at Gokhran’s auctions in 2021.
High demand and limited supply drove a 13% yoy and 6 qoq growth in average price index in the full year and in Q4 2021, respectively, with January–December 2021 delivering a 33% increase.
Alrosa’s Q4 net profit dropped 51% to RUB 12 billion ($121.5 million) qoq primarily due to lower profitability. The full year 2021 net profit went up 2.8x to RUB 91 bn ($921.5 billion) versus net profit of RUB 32 billion ($323 million) in 2020.
Alexey Philippovskiy, Alrosa’s CFO, said: “Q4 demand for jewellery continued to grow by double digits. In 2021, sales of diamond jewellery hit a new record of $84 billion, 10% above the previous records of 2018-2019. “Sales of rough diamonds reached 138 million carats worldwide, with production totalling 115 million carats. In H1 2021, the stocks accumulated previously helped meet the demand. Starting from Q3 2021, mining companies have exhausted their inventories and now supply freshly produced rough diamonds. According to preliminary estimates, global diamond production will remain at 110-120 million carats in the coming years.”