Financials

Alrosa’s 2016 Revenue Up 41% as Rough Demand Recovers

FinancialsMar 22, 2017

Alrosa’s 2016 Revenue Up 41% as Rough Demand Recovers

Increased demand for rough diamonds and a weaker ruble also helped profit increase fourfold for the miner.

Moscow--Alrosa said rough diamond demand was up last year, helping buoy growth and recovery for the company in its full-year results.

The rough diamond miner said its 2016 revenue increased by 41 percent year-over-year, totaling $5.50 billion. Net income increased fourfold over the prior year to $2.32 billion on a weaker ruble and increased demand.

Diamond sales (including both gem quality and industry quality rough diamonds) were up 33 percent during the year to 40 million carats.

Meanwhile production was down 2 percent in during the year, decreasing from 38.3 million carats in the prior year to 37.4 million in 2016.

“2016 was a year of active recovery in the diamond market following the decline of 2015,” Vice President and Chief Financial Officer Igor Kulichik said. “The company managed to deliver record-high financial performance and generate net cash flow sufficient to repay short-term and medium-term liabilities and pay out dividends to shareholders.”

The earnings release also allowed for the first comments from the rough diamond miner’s new CEO, Sergey Ivanov, since taking the position.

The 36-year-old replaced Andrey Zharkov, who left before his contract expired and reportedly had been feuding with Russia’s finance ministry over the company’s budget.

Ivanov said he is committed to implementing Alrosa’s plan to increase production to more than 40 million carats and reduce costs, among other things.

In 2017, the company said it plans to raise production by 6 percent to 39.2 million carats.

Brecken Branstratoris the senior editor, gemstones at National Jeweler, covering sourcing, pricing and other developments in the colored stone sector.

The Latest

AuctionsApr 16, 2021
Try On This Diamond and Pearl Tiara Before It Heads to Auction

Sotheby’s created an Instagram filter for the crown, estimated to sell for up to $1.5 million.

SurveysApr 16, 2021
March Retail Sales Surge

Another round of stimulus checks helped to bolster last month’s retail sales.

CollectionsApr 16, 2021
Supplier Kim International Revives its Catalog

It showcases 2021 and 2022 styles, with most ready to ship from Dallas, Texas.

Brought to you by
4 Reasons You Need This Program for Mother’s Day

Learn how to increase customer loyalty and revenue by making JM™ Care Plan a cornerstone of your business plan.

TrendsApr 16, 2021
Piece of the Week: Anthony Lent’s ‘Lunar Galaxy’ Earrings

Colorful gems enliven a classic celestial motif.

Weekly QuizApr 16, 2021
This Week's Quiz
Test your knowledge of jewelry news from the week of April 12-16, 2021.
Take the Quiz
TechnologyApr 15, 2021
Blue Nile Hires Amazon, Timex Execs

The jewelry retailer named a new chief operating officer and senior vice president of supply chain.

CollectionsApr 15, 2021
Check Out Stone and Strand’s First Bridal Collection

All six styles are priced under $2,000.

Brought to you by
Evaluating Your Inventory For Success in 2021 

After months of pandemic-driven social distancing, restrictions and lock-downs, consumers will be excited to visit your store. Now is the time to ensure you have the right inventory on-hand to capitalize on that excitement!

GradingApr 15, 2021
GCAL Introduces Its New Cut Grade Standard, 8X

Diamonds must receive a grade of “excellent” across eight criteria to be deemed an 8X.

×