Sarine has announced its full-year FY2021 results for the 12 months ended 31 December 2021. With the gradual resumption of retailing activities in H2 2020, the diamond industry rebounded in late 2020 and this positive momentum carried over into 2021. The pent-up demand, continuing restrictions on international travel and fiscal stimulus by many governments contributed to strong consumer demand for diamond jewellery in 2021.
With overall positive business conditions for most of FY2021 and the strong resurgence of diamond manufacturing activities, Sarine Group revenue rose 52% to $62.1 mn, benefiting from increased capital equipment sales and higher recurring revenues, primarily from Galaxy® inclusion scanning revenues, which rose 46% over FY2020 and lifted the gross profit margin to 74%.
Overall recurring revenues were approximately 55% of Group revenue in H2 2021 and 46% of Group revenue in FY2021.
Overall rough and polished diamond wholesale and retail-related were approximately 11% of group revenue for H2 2021 and 8% for FY2021. The Group delivered 32 Galaxy® -family inclusion mapping systems in H2 2021 comprising three Galaxy® Ultra models, two Galaxy® models, 6 Meteor™ models and 21 Meteorite™ models. About 40% of the Meteor™ and Meteorite™ systems were sold under the one-off paradigm with no follow-on per-use revenues. A total of 80 Galaxy systems were delivered in FY2021, and, as of 31 December 2021, the installed base was 711 systems.
Although higher, overall operating expenses remained prudent, and this contributed to a 596% increase in net profit to $16.5 mn in FY2021. The Board of Directors has recommended a final dividend of US 1.0 cents per ordinary share for FY2021, and when approved at the AGM on 26 April 2022, the dividend is expected to be paid on 19 May 2022.
Sarine’s Trade revenues, currently mostly from digital tenders, the Sarine Profile™ and the Sarine Diamond Journey™ have grown strongly in FY2021, albeit from a small base to account for approximately 11% of group revenue for H2 2021 and 8% for FY2021. The company expects Trade revenues to continue growing in FY2022 from new customers and the broadening adoption of our new technologies.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
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