Alrosa’s Q1 2021 revenue decreased by 8% q-o-q to RUB 90.8 bn, on the back of weaker diamond sales, which was partially offset by a better sales mix and growth of average realised prices. A 45% y-o-y revenue increase was driven by higher sales volumes (up 65% y-o-y) and the rouble depreciation.
Net profit increased by 13% q-o-q to RUB 24 billion, on stronger return on sales. The nearly eightfold y-o-y growth was related to increasing sales volumes and less pronounced negative foreign exchange effect.
Alrosa’s 2021 production outlook remains unchanged at 31.5 million carats.
Alexey Philippovskiy, Alrosa’s CFO, said: “Q1 saw a continued increase in demand for diamond jewellery from end consumers across all key markets, mainly in the US and China. In particular, the US market demonstrated a double-digits growth even against the 2019 results.
“Thanks to strong demand and relatively low stocks in the cutting sector, diamond producers managed to significantly improve sales, while prices recovered to the early 2020 levels by the end of Q1 2021.
“Our outlook for the end consumer market remains positive. The market is recovering faster than expected. Meanwhile, diamond supply is still 20% below the pre-Covid levels and the production is unlikely to bounce back in the mid-term.”