Israel-headquartered Sarine Technologies Ltd., a leading producer of diamond processing equipment, said active cost reductions and product mix helped reverse the loss of $1.4 million in FY2019 to a net profit of $2.4 million in FY2020 that ended 31st December, 2020.
This despite recording a 20% decline in revenue to $41 million in FY2020, from the $51.3 million achieved in FY2019.
The firm said it took proactive steps from late March 2020 to reduce costs in light of the pandemic crisis by cutting all non-essential activities. This reduced group operating expenses by 22% in FY2020 as compared to FY2019, it informed.
Sarine said demand for polished diamond jewellery fell substantially for the first nine months of 2020, when retail activities in the Asia Pacific, Europe and the United States were restricted for substantial periods.
On the production side, full and partial lockdowns in India for over four months from the end March 2020 halted, or significantly reduced, all manufacturing and polishing activities in the world’s major diamond manufacturing centre.
“The global diamond industry started on a path of recovery in H2 2020, aided by the reopening of jewellery retail activities, leading up to and including the end-of-year holiday season, and the consequent resumption of diamond manufacturing activities in India,” the company stated.
China, too, experienced growth in luxury spending in 2020 as well as during the Chinese New Year season in 2021, while the USA witnessed stronger-than-expected diamond jewellery spending during the critical year-end holiday season.