ALROSA announced its IFRS financial results for 2019. The company's net profit for 12 months of 2019 amounted to 63 billion rubles, a decrease of 31% compared with the previous year. Revenue for the 12 months of 2019 decreased by 21%, to 238 billion rubles due to a decline in sales volumes by 12% amid falling demand in the diamond market, lower average like-for-like diamond price index (down 6%), and a higher share of small-size diamonds in the sales mix. EBITDA amounted to 107 billion rubles, down -31% year-on-year due to lower revenues, while EBITDA margin was down to 45% against 52% in 2018.
Free cash flow for 2019 decreased by 48%, to 48 billion rubles, which was due to lower profitability as top line declined, along with a working capital build-up in 2019, which was partly offset by downscaled capex from initially planned RUB 29 bn to RUB 20 bn. The company's production plan for 2020 remained unchanged at 34.2 million carats.
Capital expenditures stand at 22 billion rubles.
In the fourth quarter, ALROSA's net profit amounted to 12 billion rubles, which is 14% lower compared to the previous quarter.
Over the period under review, the company's revenue increased by 41%, to 65 billion rubles, compared with the 3rd quarter of 2019 due to the growth in sales and prices. EBITDA increased by 40%, to 30 billion rubles, compared with the previous quarter. At the same time, free cash flow rose to 17 billion rubles against the background of growth in operating cash flow.
At the end of 2019, net debt / EBITDA for 12 months rose to 0.7x (2018 - 0.4x). The company's total debt grew by 23% to $ 1.9 billion, according to a statement by Alexey Filippovsky, ALROSA’S CFO.
ALROSA is the world leader in diamond production.
Victoria Quiri, Correspondent of the European Bureau, Rough&Polished, Strasbourg
Capital expenditures stand at 22 billion rubles.
In the fourth quarter, ALROSA's net profit amounted to 12 billion rubles, which is 14% lower compared to the previous quarter.
Over the period under review, the company's revenue increased by 41%, to 65 billion rubles, compared with the 3rd quarter of 2019 due to the growth in sales and prices. EBITDA increased by 40%, to 30 billion rubles, compared with the previous quarter. At the same time, free cash flow rose to 17 billion rubles against the background of growth in operating cash flow.
At the end of 2019, net debt / EBITDA for 12 months rose to 0.7x (2018 - 0.4x). The company's total debt grew by 23% to $ 1.9 billion, according to a statement by Alexey Filippovsky, ALROSA’S CFO.
ALROSA is the world leader in diamond production.
Victoria Quiri, Correspondent of the European Bureau, Rough&Polished, Strasbourg
