De Beers is expected to weather the coronavirus storm as it got into this crisis with a strong balance sheet, according to a company executive.
Group executive vice president, Diamond Trading, Paul Rowley was quoted by Mmegi as saying they have a resilient business and had been carefully managing all the aspects of their business they can control.
“We have gone into this crisis with a very strong balance sheet allowing us to support our partners and investments in strategic initiatives,” he said during a press briefing.
“We have been around for 130 years and what we are putting in place shows that we have the resilience to go through this crisis and lead into the future.”
De Beers’ revenue dropped by 54% to $1.2 billion in the first half of 2020 compared with $2.6 billion, a year earlier.
The group’s rough diamond sales eased to $1 billion from $2.3 billion recorded during the same period in 2019.
Rough diamond sales volumes also decreased by 45% to 8.5 million carats compared to the previous year’s 15.5 million carats.
The decline was attributed to the significant impact of Covid-19 on the global diamond industry.
De Beers is hoping to bounce back from a slump in revenue during the festive period, which covers Thanksgiving in the United States, Christmas, the New Year and the Chinese New Year in February.
The group will anchor its marketing activities for the upcoming festive period on emotional themes tied to the global mood around COVID-19.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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