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ALROSA's 1Q Revenue +43%, Profit -3%
Jun 24, 2014 2:44 AM
By Deena Taylor
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RAPAPORT... ALROSA reported that revenue rose 43 percent year on year to $1.66 billion (RUB 56.3 billion) in the first quarter of 2014. Growth was driven by an increase in sales volume, coupled with a weakening of the Russian ruble against the U.S. dollar.
ALROSA's profit declined 3 percent to $179.5 million (RUB 6.1 billion) due to higher costs. The group's cost of sales rose 40 percent to $820.6 million (RUB 27.88 billion).
Fyodor Andreyev, the CEO of ALROSA, noted that the company observed positive market dynamics during the first quarter. The average increase for rough diamond prices was 3 percent during the period, ALROSA noted. However, the company explained that the average price of its gem-quality diamonds that sold actually fell 2 percent year on year to $155 per carat due to changes in product mix.
The company reported that diamond sales rose 42 percent to $1.51 billion (RUB 51.5 billion) and the volume of diamond sales increased 23 percent to 12.7 million carats. ALROSA also receives revenue from other product subsidiaries, including energy and gas.
More than half of ALROSA's diamond sales were made to companies in Belgium, while about 19 percent were sold within the Russian Federation. India accounted for approximately 15 percent of ALROSA's sales, while Israel-based companies accounted for about 10 percent.
During the quarter, group diamond production rose 5 percent to 7.9 million carats. ALROSA's free cash flow rose 2.5 times to $618.1 million (RUB 21 billion) due to increased operating profit from diamond sales and inventory sell-down. Group debt grew 1 percent to $3.55 billion (RUB 120.7 billion).
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Tags:
Deena Taylor
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