Sarine Technologies reported improved sales and profitability in the third quarter that ended 30th September in spite of an unfavourable business environment. The Israel-based company said its Q3 2022 revenues increased 20% to $14.5 million and net profit grew 12% to $2.2 million versus Q3 2021 despite headwinds.
“Continuing negative geopolitical developments, the war in Ukraine, an inflationary economic environment with dramatically increased energy bills, the ongoing zero-Covid policy and lockdowns in China and the resulting equity market losses impinging on household wealth in many key markets, had an overall negative effect on consumer confidence and, by extension impaired business conditions in the discretionary diamond jewellery value chain,” Sarine commented.
“Midstream polishing activities decreased somewhat as uncertainties slightly reduced the quantities of rough diamonds entering the pipeline, and the summer vacations in the US and European markets slowed demand,” it noted.
“The latest data from the key US market indicate the economy and consumer demand remain robust and inflation has cooled somewhat, allowing retailers to remain cautiously optimistic on prospects for the year-end holiday season,” Sarine said.