Alrosa reports a profitable 2018, strengthens its presence in the US by making a deal with Tiffany’sMarch 18, 19
Alrosa reported last week that net profit had risen with some 15 percent to reach $1.4 billion in 2018. The announcement followed earlier reports that the company’s sales volume had dropped with eight percent compared to 2017. Higher price levels for goods sold, however, caused sales to rise $4.4 billion, a value increase of six percent, the leading diamond miner said.
“The key financial drivers included improved market environment (recovery in prices and stronger demand for diamond jewellery in major markets) and management efforts to boost efficiency,” Deputy Chief Executive Alexey Philippovskiy said in a statement published by TASS.
The company expects its own production to increase this year to between 37.5 million and 38 million carats, up from 36.7 million carats in 2018. Globally, it expects supply to continue to gradually decrease, the company said, while stocks at jewellers and polishers are expected to remain low due to foreign exchange volatility and rising financing costs for polishers.
As part of its quest to create a more visible and stronger presence in the USA, Alrosa started n negotiations with Tiffany & Co on”the supply of fine, rough diamonds of premium colors,” CEO Sergei Ivanov told the TASS news agency last week.
“We have good, long-standing relations with Tiffany. They value and buy a certain range of Russian diamonds. Indeed, they have extra demand. We are negotiating with them but on colors, not just merely over small rough diamonds," Tass quoted Ivanov. Tiffany & Co. is one of the United States’ most prestigious retail jewelers, operating many hundreds of jewelry stores worldwide under the Tiffany brand.