Alrosa’s profit and revenue fell in 2024 as sanctions on Russian diamonds and weak market demand for rough hit its bottom line.
The company reported profit of RUB 19.25 billion ($215.3 million) for the year, compared to a profit of RUB 85.18 billion ($952.8 million) a year earlier, it said Friday. Revenue fell 26% to RUB 239.07 billion ($2.67 billion). While a large portion of the loss is attributable to a smaller consumer base for its rough due to sanctions, the weak market also led to an impairment, or devaluation of Alrosa’s property, plant and equipment, totaling RUB 4.98 billion ($55.6 million).
Alrosa and its diamonds have been subject to sanctions by the US and other Western countries since Russia’s war in Ukraine began in February 2022. Major markets, including India and Dubai, still permit imports of Russian diamonds. The miner’s report was its third full results statement since March 2022. On all three occasions, it withheld information on the destination of its sales, which usually shows the United Arab Emirates (UAE) and India to be the largest buyers.
In December, the company announced production for the full year had dropped 4.6% to 33 million carats.
During the year, state-owned Gokhran purchased a portion of Alrosa’s rough. In March, and again in October, Alrosa offloaded diamond parcels to the precious-metal and gem repository. The company did not disclose the total carat weight or value of either batch.
Alrosa’s net debt was RUB 107.9 billion ($1.21 billion) as of December 31, compared with RUB 36.1 billion ($403.5 million) a year earlier. Meanwhile, the value of rough inventory rose 54% to RUB 129.93 billion ($1.5 billion).
The miner has also said it would cut its output for 2025 and lay off staff amid the challenges of sanctions and persistent weak demand.
Image: Rough diamonds. (Alrosa)
