Alrosa’s profit and revenue declined sharply in 2024, as sanctions on Russian diamonds and weak market demand weighed on its financial performance.
The company reported a profit of RUB 19.25 billion ($215.3 million) for the year, a steep drop from RUB 85.18 billion ($952.8 million) in 2023.
Revenue fell 26% to RUB 239.07 billion ($2.67 billion). Beyond reduced consumer demand due to sanctions, Alrosa recorded a RUB 4.98 billion ($55.6 million) impairment on property, plant, and equipment.
Since Russia’s invasion of Ukraine in 2022, Alrosa and its diamonds have been sanctioned by the US and Western countries, limiting its access to key markets.
However, India and Dubai continue to allow imports of Russian diamonds. The company has not disclosed the destinations of its sales in any of its financial reports since 2022, though the UAE and India are traditionally the largest buyers.
In December 2024, Alrosa announced that its diamond production had declined 4.6% to 33 million carats for the year.
The Russian state-owned Gokhran purchased portions of Alrosa’s rough in March and October, though the company did not disclose the carat weight or value of these transactions.
By the end of 2024, Alrosa’s net debt had surged to RUB 107.9 billion ($1.21 billion), up from RUB 36.1 billion ($403.5 million) in 2023.
Meanwhile, its rough diamond inventory increased by 54% to RUB 129.93 billion ($1.5 billion).
In response to sanctions and prolonged weak demand, Alrosa has announced plans to cut diamond production in 2025 and lay off staff as it seeks to navigate ongoing market challenges.
