ALROSA’s full-year net profit dips 77.3% in 2024 y-o-y

Russia’s sanctions-hit diamond producer ALROSA has reported a 77.3% fall in 2024 net profit year-on-year to 19.3 billion roubles ($219.32 million) on revenue of 239.1 billion roubles. ALROSA is the world’s largest producer of rough diamonds by volume. Revenue was down 25.9% year-on-year in 2024.

Group of Seven (G7) countries banned direct imports of Russian diamonds in January 2024. This was followed by a European Union and G7 ban on imports of Russia-origin diamonds via third countries. ALROSA itself has been under US sanctions since 2022.

ALROSA’s net debt rose to 107.9 billion roubles at the end of 2024, from 36.1 billion roubles a year earlier, while its net debt to EBITDA ratio jumped to 1.37x from 0.26x. Diamond reserves for the year rose to 129.9 billion roubles, up from 84.3 billion roubles at the end of 2023.

ALROSA has also announced plans to cut labour costs, reduce some of its 35,000 staff and suspend development of its least profitable assets.