India’s gem and jewellery industry expects the government will consider its demand for lower import duty on raw materials

A go-getter at heart, with an attitude to match, Pramod Kumar Agrawal, Chairman of the Gem & Jewellery Export Promotion Council (GJEPC) of India is a man in a hurry. He has not left any stone unturned to bring back the Indian gem & jewellery...

Yesterday

“Only do business with clients who have impeccable integrity,” suggests Davy Blommaert, banker

Davy Blommaert heads the Diamond Business at National Bank of Fujairah, which falls under the bank’s corporate and institutional banking division. With nearly 10 years of experience in the diamond industry, he was tasked to establish a unit within NBF...

18 march 2019

Russia’s export legislation is like a log on the road making it difficult to drive through

Eduard Utkin, General Manager of the Russian Jewellers Guild Association, which is a member of the Russian Federation Chamber of Commerce and Industry, answers the questions from Rough & Polished regarding the activities of the country’s professional...

11 march 2019

Botswana mum on new demands as negotiations with De Beers draw closer

Botswana said it will begin new diamond marketing and sales negotiations with De Beers in June or July this year. Mineral resources minister Eric Molale told Rough & Polished’s Mathew Nyaungwa on the sidelines of a mining conference in Cape Town, South...

04 march 2019

DLX-jewellery will focus more on colour stone designed pieces as well as diamond jewellery sets going forward - Jack Chen, General Manager, DLX-Jewellery

Graduating in International Business from an Institute in Sydney, Australia, in 2015, Jack Chen returned to China to start managing his family-owned jewellery business. Besides holding a certificate in a practical diamond course at Gemological Institute...

25 february 2019

ALROSA’s revenue up 9% in 2018 despite a drop in sales in carats by 8%

15 march 2019

ALROSA, the world’s leader in diamond mining, announces its IFRS financial results for 2018.
The company’s revenue during 12 months of 2018 increased by 9% to RUB 300 bn driven by higher price index and a better sales mix, despite an 8% lower sales in carats.
EBITDA grew by 23% to RUB 156 bn supported by top line growth and cost control while EBITDA margin expanded by 6 p.p. to 52%. Net profit grew to RUB 90 bn (up 15%) on stronger profitability. Free cash flow went up by 26% to RUB 92 bn following profitability expansion despite moderate capex growth. Net debt to EBITDA was at 0.4x in 2018 compared to 0.7x in the previous year.
In Q4 2018 ALROSA’s evenue decreased by 12% q-o-q to RUB 61 bn, mainly due to sales mix change with increased sales of industrial diamonds. A 1% y-o-y growth was due to increase in average selling price offsetting lower sales in carats. EBITDA in Q4 declined by 33% q-o-q to RUB 27 bn as revenue declined. On a y-o-y basis, EBITDA remained unchanged while EBITDA margin in Q4 remained flat at 44%.
Free cash flow (FCF) decreased to RUB 14.3 bn (down 11% q-o-q) as operating cash flow was 14% down q-o-q, while capex was down 20% q-o-q. On a y-o-y basis, FCF grew by 22% due to a 18% drop in capex, and 6% growth in operating cash flow. Net profit in Q4 declined to RUB 8 bn (down 67% q-o-q) due to a weaker EBITDA. A 53% reduction y-o-y was attributable to the recognition of income from the SOGAZ insurance reimbursement as other operating income for 2017, with the said reimbursement paid in full in 2018.