Israel-based Sarine Technologies Ltd, the trailblazer in precision technology for the diamond industry, has announced a return to profitability in the first quarter of 2024. The company saw a 27% increase in group revenue compared to the last quarter of 2023, reaching $11.2 million. This stability is attributed to a rebound in rough diamond flow and a significant reduction in natural rough prices, which have bolstered Sarine’s core business.
At the segmental level, capital equipment sales recovered by 19%, while as recurring revenues grew by 31%, as the quantities of rough diamonds entering the pipeline rebounded (GCAL subsidiary grading revenues in Q1 2024 were seasonably lower than Q4 2023, the peak of the end-of-year U.S. holiday season). As of March 31, 2024, Sarine’s installed base of the Galaxy-family was 832 systems.
On higher revenues, but with a revenue mix that includes GCAL’s operations, gross profit margin was 64.1% in Q1 2024, as compared to 49.5% in Q4 2023 and 71.4% in Q1 2023, before the GCAL acquisition.
Correspondingly, gross profit for Q1 2024 was $7.2 million up from $4.3 million in Q4 2023, but down from $8.2 million in Q1 2023. In line with management’s aggressive ongoing cost cutting, operational expenses were reduced by just under 6% as compared to Q4 2023 and fell by over 12% as compared to Q1 2023, enabling the Group to realise a profit of $0.6 million in Q1 2024, as compared to a loss of $2.8 million in Q4 2023.