Alrosa’s Jan-Sep 2016 Revenue +48% To $3.9 Mn
Alrosa, the world’s largest producer of rough diamonds in terms of volume, said its revenue for the JanuarySeptember 2016 period increased by 48% year-onyear and totalled RUB255.6 billion ($3.9 billion). The group’s net profit grew more than three-fold compared with a year earlier and reached RUB116.9 billion ($1.8 billion).
Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 67% to RUB150.0 billion ($2.3 billion), and the EBITDA margin totalled 59%.
In a conference call, Igor Kulichik, CFO & vicepresident of Alrosa, said, “The 54% increase in revenue from diamond sales (RUB83.5 billion/$1.28 billion) was driven by the 31% sales volumes growth, and also by the ruble weakening against the US dollar by 14% year-on-year in 9M 2016. A drop in the average price of the sold diamonds in 9M 2016 was primarily due to the company’s price cutting initiatives back in 2015.”
Net income and free cash flow increased threefold year-on-year to RUB116.9 billion ($1.8 billion) and RUB104.1 billion ($1.6 billion) respectively.
Andrey Zharkov, CEO of Alrosa, said: “The recovering demand for diamonds has driven up sales volumes and reduced the remaining diamond inventories. Cost control measures have allowed us to keep production costs growth rate at the minimum level. The threefold growth in the net cash flow and net profit of the company creates enough liquidity to increase dividend payments to the shareholders and early debt repayment”.