Al­rosa’s Jan-Sep 2016 Revenue +48% To $3.9 Mn

Solitaire - - SPECTRUM -

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”.

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