Sarine Q3 Revenues +64% To $12.1 Million

Israel-based Sarine Technologies Ltd.’s revenues for Q3 2021 rose 64% year-on-year to $12.1 million and generated a net profit of $1.9 million versus a loss of $0.4 million last year.

Sarine noted, “Following a strong recovery in the first half of 2021, the initial months of the second half were affected by the usual seasonal summer slowdown and by evolving uncertainties. Developing circumstances in China related to the ‘common prosperity strategy’ adopted by the government there have created uncertainties pertaining to the Chinese luxury market, the second most important market for polished diamonds. Most importantly, the rapid increase in the pricing of rough diamonds during the first half of 2021, on the backdrop of increasing inventories of polished stones, which slowed or halted, and even reversed in certain categories, the corresponding increase in polished diamond prices, has yet again impaired the midstream polishing sector’s profitability.”

The company said that notwithstanding the reduced quantities of rough diamonds entering the pipeline, the expanding adoption of its inclusion mapping technologies and their application to smaller stones, even down to below 0.1 carats rough, have resulted in daily usage peaking to 110,000 stones. “We are on track to surpass scanning 30 million stones during 2021, a greater than 60% increase over pre-pandemic usage,” Sarine emphasised. “Current expectations are overall positive for a robust end-of-year holiday season in the US. Expectations are also for a strong holiday season in the APAC market as well, though uncertainties pertaining to the Chinese market do persist. The main concern currently is, once again, the disparity between rough diamond price increases (20% y-o-y) and polished diamond prices, which have seemingly peaked as inventories have been replenished. Currently the midstream is absorbing this disparity, having benefited from a very strong first half of 2021, but with the narrowing of the profit margins realised by the polishers, we do not expect this to be sustainable in the long-term,” Sarine cautioned.

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