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ALROSA Q1 Revenue Falls To $1.1B; Profit to $373M As Sales Decline

ALROSA reported that revenue for the first quarter of 2019 had declined 27 percent to RUB 70 billion ($1.1 billion) from the RUB 96 billion ($1.5 billion) in the first quarter of 2018, while net earnings for the period fell 27 percent to RUB 24.1 billion ($373 million).

This was mainly due to only 10.6 million carats of rough diamonds being sold during the period — a 21 percent drop from the 13.4 million carats sold in Q1 2018 — and a higher share of small-size diamonds being sold.

ALROSA Deputy CEO Alexey Philippovskiy commented, "Following a sizeable de-stocking of small-size rough diamonds by cutters and polishers in the second half of 2018, we saw an improved demand for this product early in 2019.”

He added, “Based on the company's performance in 2018, the board recommended 2018 second-half dividends of RUB 4.11 ($0.06) per share, or RUB 30.3 billion ($469 million) in total, which is equal to 100 percent of the free cash flow."

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