Alrosa Q3 Revenue Down as Rough Shortages Persist
November 16, 21
(IDEX Online) - Alrosa reported an 18 per cent drop in revenue for Q3 as rough shortages persisted
The lower revenue was largely in line with a 20 per fall in sales, though it was offset to a small degree by a higher price index (+10% qoq).
Diamond sales in Q3 totaled 9.2m carats, including 700,000 carats Alrosa had to buy from the Gokhran state repository because of shortages from mines. Sales in Q2 were 11.4m.
Alexey Philippovskiy, Alrosa's CFO, said demand was strong, but supply was a problem.
"By the start of Q3 21, producers had run out of their stocks and began supplying 'freshly"' produced diamonds," he said.
"In the coming years, the global diamond production will remain 20-25 per cent below the pre-pandemic levels.
"On the back of the strong demand and limited supply, polished and rough diamond prices rebounded by nine per cent and 12 per cent, respectively, versus the early 2019 levels."
Pic, courtesy Alrosa, of rough sorting