This recovery comes despite persistent industry challenges, including sluggish demand in China and increased competition from lab-grown diamonds (LGD).
The company’s revenue for FY2024 declined by 8.7% year-on-year to $39.2 million, largely due to subdued global diamond demand and the growing presence of LGD in the market. The U.S. market, in particular, has seen an oversupply of LGD, driving down their prices and exerting pressure on the pricing of natural diamonds. However, Sarine noted that natural diamond inventories remained in check due to a restricted supply of rough diamonds.
To counter these pressures, Sarine implemented cost-cutting measures and enhanced operational efficiencies, contributing to its improved profitability. The company also leveraged its investment in LGD grading technologies and gained from valuation adjustments related to GCAL put/call options.
As part of its strategic evolution, Sarine introduced the Most Valuable Plan™ (MVP), an advanced solution for optimising rough diamond planning. Additionally, the company expanded its footprint in the LGD sector by launching a GCAL by Sarine laboratory in India, further broadening its customer base and recurring revenue streams.
Looking ahead to 2025, Sarine foresees continued challenges in natural diamond demand, particularly due to weak Chinese consumer spending and ongoing LGD oversupply. However, the company remains optimistic about the market’s stabilisation, with natural diamonds expected to maintain a stronghold in the bridal segment while LGD continues to dominate the fashion jewellery space.
In a strategic diversification move, Sarine has signed a Letter of Intent (LOI) to acquire a majority stake in Kitov.AI, a company specialising in AI-driven quality assurance and control (QA/QC) solutions. Kitov.AI’s technology utilises AI-based automation to enhance accuracy and efficiency in inspection processes. This acquisition marks Sarine’s expansion into non-diamond sectors, including electronics, automotive, and aerospace, as it seeks to broaden its technological portfolio beyond the jewellery industry.
