A double-digit drop in the number of in-store crimes was offset by a jump in off-premises attacks, JSA’s 2023 crime report shows.
De Beers’ Sales Rise but Earnings Sink
The company warned that the global diamond jewelry market “faces a number of headwinds” in 2019.
London—De Beers’ sales increased in 2018 but profits tumbled due to the money it spent on initiatives like Lightbox and Tracr, its blockchain platform.
Parent company Anglo American reported Thursday that total revenue for De Beers Group in 2018 rose 4 percent year-over-year to $6.10 billion, compared with $5.84 billion in 2017.
The company sold less rough by volume—31.7 million carats vs. 32.5 million carats in 2017—but for a higher average realized price, $162 per carat to $171 per carat, as sales of lower-value diamonds dropped off in the second half of the year.
Revenue classified as “other,” which includes industrial diamond arm Element Six (the company making the diamonds for Lightbox, the lab-grown jewelry line) and De Beers’ jewelry stores, also increased due to improved sales of high-end pieces at De Beers Jewellers, though Element Six’s sales were down 5 percent due to a drop-off in demand for industrial diamonds from the oil and gas market.
Underlying EBITDA fell 13 percent, from $1.44 billion to $1.25 billion.
De Beers said while it maintained unit costs and upstream profit margins, the money it spent to launch Lightbox Lightbox, blockchain platform Tracr and GemFair, its pilot program for tracking diamonds mined artisanally or on a small scale, ate into profit as did increased expenditure in marketing, exploration and evaluation in Canada.
De Beers said worldwide, preliminary data indicates consumers bought more jewelry in dollar terms in 2018, with the first half of the year finishing particularly strong.
However, demand slowed in the second half due to increased “political and policy uncertainty” and volatility in the stock market. This mirrors what jewelers told National Jeweler at the recent Centurion show—that business dropped off in December after the stock market took a dive.
De Beers also noted that the midstream sector of the market—diamond cutters and polishers—had a difficult second half due to weak demand for and surplus availability of lower-priced rough, the rapid depreciation of the rupee and inability to get bank financing.
In 2019, it said while current economic forecasts remain positive, consumer demand for diamond jewelry globally “faces a number of headwinds,” including escalating trade tensions between the United States and China, and further exchange rate volatility.
RELATED CONTENT: Nirav Modi Case Is ‘Another Nail in the Coffin’Production-wise, De Beers mined 35.3 million carats of rough in 2018, rising 6 percent from 2017 but falling at the low end
Botswana remained De Beers’ top-producing nation by far, pumping out 24.1 million carats of diamonds, up 6 percent from 22.7 million last year due in part to the restart of operations at Damtshaa.
Production fell 10 percent in South Africa, from 5.2 to 4.7 million carats, while rising in both Canada and Namibia.
In Canada, De Beers mined 4.5 million carats of diamonds last year, up from 3.8 million in 2017 due to the full-year contribution from the new Gahcho Kué mine and the last push of production at Victor, which is slated to close in the first half of this year.
Production in Namibia totaled 2.0 million carats, up from 1.8 million carats in 2017.
Looking ahead to 2019, De Beers said it expects production to be lower, in the range of 31 to 33 million carats, subject to trading conditions.
More of De Beers’ production will come from the mines in which it has joint venture partners in 2019, and it also will see production drop off at the Venetia mine in South Africa as it scales back ahead of the closure of the open-pit portion of that operation.
The Latest
Inspired by the Roman goddess of love, the designer looked to the sea for her new collection.
The luxury titan posted declining sales, weighed down by Gucci’s poor performance.
With Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
The selected nine organizations have outlined their plans for the funds.
The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.
Emmanuel Raheb recommends digging into demographic data, customizing your store’s communications, and retargeting ahead of May 12.
For over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
Located in the town of Queensbury, it features a dedicated bridal section and a Gabriel & Co. store-in-store.
Ruser was known for his figural jewelry with freshwater pearls and for his celebrity clientele.
The “Rebel Heart” campaign embodies rebellion, romance, and sensuality, the brand said.
Editor-in-Chief Michelle Graff shares the standout moments from the education sessions she attended in Austin last week.
The overhaul includes a new logo and enhanced digital marketplace.
The money will go toward supporting ongoing research and aftercare programs for childhood cancer survivors.
A new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.
Last month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
The move will allow the manufacturing company to offer a more “diverse and comprehensive” range of products.
From now through mid-May, GIA will be offering the reports at a 50 percent discount.
De Beers’ rough diamond sales were down 18 percent year-over-year in its latest round of sales.
Sponsored by the Las Vegas Antique Jewelry & Watch Show
The Patek Philippe expert will serve as personal curator for the brand-focused company.
The 553-square-foot shop is aboard the Carnival Jubilee cruise ship.
NDC filed a complaint against Skydiamond for use of phrases like “diamonds made entirely from the sky.”
John Carter received the AGS’s highest honor Tuesday afternoon at Conclave in Austin, Texas.
LVMH said the company performed well despite an uncertain geopolitical and economic environment.
B&D Sales and Service held a ribbon-cutting event for its new location in Cranston, Rhode Island.
It’s ultra-feminine and filled with gold, pearls, and soft pastels.