Sarine Technologies incurred a loss for the first nine months of 2024 as challenging market conditions weighed on diamond-manufacturing activity.
Revenue fell 10% year on year to $30.6 million, the Israel-based diamond-technology firm reported Sunday. The company recorded a net loss of $200,000, it added.
“Weakened consumer demand in China and the continuing disruptions from the lab-grown diamond market continue to impact natural-diamond demand and appropriately slow manufacturing activity,” the company said.
Revenue from synthetic diamonds more than doubled year on year as Sarine expanded the capacity at its GCAL by Sarine lab-grown diamond-grading lab in India. It also broadened its rough-planning technology, which it noted approximately one fifth of all lab-grown sellers in India had adopted. Sales in the lab-grown sector grew 25% month on month in the third quarter.
Operating costs dropped 20% year on year, with the company implementing strict cost-cutting measures. The firm remains optimistic about long-term growth, citing potential in its recurring revenue streams and future expansion in lab-grown diamond-grading services.
“The [company] is also well-positioned to capitalize on emerging trends and opportunities, such as traceability, if required by the G7 [Group of Seven ]-proposed sanctions on Russian-sourced diamonds,” the firm noted.
Image: Sarine headquarters in Hod Hasharon, Israel. (Sarine Technologies)
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