De Beers Expected to Post First-Half Loss
July 27, 25
(IDEX Online) - De Beers is expected to report a loss for the first half 2025 despite an uptick in sales during the second quarter.
Sales for H1 were down 13 per cent year-on-year, according to a production report published last Thursday (24 July) by parent company Anglo American. But Q2 showed a 14 per cent increase on the same period in 2024.
De Beers said the last three sights raised $1.185bn, buoyed by the sale of specific assortments at lower margins due to "stock rebalancing initiatives" or discounts on inventory.
So although revenue was higher compared with Q2 2024 ($1.039bn) Anglo said it expects to report negative underlying EBITDA for De Beers in the first half of 2025.
It also noted that "a formal process for the sale of De Beers is advancing, despite the current challenging market conditions".
Rough diamond trading conditions remained challenged, it said, though improved industry sentiment at the end of the first quarter led to stabilization of polished diamond prices.
"But uncertainty surrounding U.S. tariffs announced in April subsequently slowed polished trading," it said.
"In contrast to the ongoing challenging trading conditions, consumer demand for diamond jewellery remained broadly stable in the first half of the year."
Meanwhile production decreased by 36 per cent to 4.1m carats in Q2, reflecting a planned production response to the prolonged period of lower demand. The biggest quarterly drops were in Botswana (-44 per cent) and Canada (-46 per cent). South Africa production actually rose 17 per cent.
Production guidance for 2025 is unchanged at 20 to 23m carats (actual production for 2024 was 24.7m carats) and average per carat price at $94 (actual average for 2024 was $152).