Israel-based Sarine Technologies Ltd. registered its best Q1 in seven years owing to a strong resurgence in manufacturing activities driven by the reopening of diamond jewellery retail activities. The world’s leading producer of diamond manufacturing equipment recorded a net profit of $6.7 million in Q1 on revenues of $17.3 million.
The global diamond industry started on a path of recovery in the second half of 2020 driven by retail demand, Sarine noted. The recovery culminated in a stronger than expected end-of-year holiday season in the crucial US market, as well as a strong Chinese New Year season in early 2021 throughout most of the Asia-Pacific market.
On the backdrop of reduced inventories stemming from the curtailed and diminished polishing capacities during the Covid-19 pandemic lockdowns and restrictions in India for most of the first half of 2020, the renewed demand propelled a strong resumption of diamond manufacturing activities. This trend continued in the first quarter of 2021, it added.
Sarine informed that the strong resurgence in manufacturing activities has driven the utilisation of our inclusion mapping systems to averages approaching 95,000 stones daily, 40% higher than 2019 volumes. However, logistical issues stemming from the still lingering Coronavirus pandemic restricted our deliveries of Galaxy®-family systems in the first quarter to only 12 systems.
The company is continuing aggressive sales programmes of systems for smaller stones, but cautioned that the current pandemic conditions in India have created immediate-term uncertainties.
Sarine said currently, the midstream manufacturing segment of the diamond industry value chain centred in Surat, is continuing to operate, for the most part, normally, as a result of strong global demand for polished diamonds.
Polishing has declined somewhat due to absences of ill or quarantined workers, more so for the producers of smaller stones, whose facilities are less conducive to the required social distancing. The situation is very dynamic and the Indian epidemic is definitely creating uncertainties, which may affect the value chain over the next 2-3 months.
Sarine said it is “standing by its employees and extending essential support to them and their families during these challenging times.”