ALROSA’s sales in 2011 went up 55% - Annual Report

At the 2011 year end, ALROSA raked in RUB 52.554 billion in diamond sales, which is 55% higher than in 2010. The miner’s return on sales increased by 44.6% versus 2010 due to changes in prices for sold goods, implementation of organizational and technical measures to reduce the company’s operating costs under the Energy Saving Program and cost control.
Profit before tax amounted to RUB 35.562 billion, which is more than 3 times exceeds the 2010 level. During the reporting period the company received a net profit of RUB 29.519 billion or 3.9 times higher than in 2010. The efficiency of the company's turnover is characterized by the turnaround velocity of funds and their sources, as well as by profit margin. As analyzed, the company’s funds turnaround was shorter by 42 days compared to the beginning of the year, which indicates a higher paying capacity.
Return on assets rose during the reporting period by 7.38% over the same period last year. The change during the year was due to increased return on sales (+5.94) and higher turnaround of assets (+1.44%). From each ruble invested in assets, the company received 10.07 kopecks of net profit. Return on equity rose by 11.98% in the reporting period compared to one year ago.
The company’s profit margin changed under the impact of three major factors: higher return on sales to net profit (+10.61%); increased turnaround of funds (+2.57%); and changes in the structure of capital advances (-1.19%). ALROSA retrieved 16.77 kopecks of net profit from one ruble of its capital. At the end of 2011, its net profit margin increased by 25.1%, which is 3.2 times higher than the results in 2010. Earnings per share amounted to 4 rubles versus 1.19 rubles in 2010 (in comparable terms – counted for 7,364,965,630 shares).