ALROSA reported that net earnings grew 15 percent to RUB 90 billion ($1.38 billion) on a 9 percent increase in revenue to RUB 300 billion ($4.59 billion). The company said the results were due to stronger profitability on the increased revenue that was driven by a higher price index and a better sales mix despite an 8 percent drop in the number of carats sold.
Pretax earnings grew 23 percent to RUB 156 billion ($2.39 billion), with the pretax margins growing 6 percentage points to 52 percent.
ALROSA Deputy CEO Alexey Philippovskiy commented, "The key financial drivers included an improved market environment (recovery in prices and stronger demand for diamond jewellery in major markets) and management efforts to boost efficiency.”
He added, “In 2018, ALROSA took an active approach to debt portfolio management, bringing down its total debt by 5 percent and interest expenses by 39 percent. As a result, the company's leverage slimmed down to an all-time low, with the net debt / EBITDA ratio now standing at 0.4x compared to 0.7x in the previous year.”