ALROSA (ALRS) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 was RR 134,257 million, down from RR 179,468 million year-over-year, mainly due to sanctions and high prior-year base.

• Net profit for the six months was RR 40,598 million, up from RR 36,626 million year-over-year, despite lower revenue.

• The company completed the sale of its stakes in Catoca Mining Company Ltd and Hydroshikapa S.A.R.L, recognizing significant one-off income and losses.

• Management emphasized ongoing geopolitical and market risks, but affirmed the group’s ability to continue as a going concern.

Financial highlights

• Gross profit for the six months was RR 41,790 million, down from RR 67,882 million year-over-year.

• EBITDA for the six months was RR 37,095 million, compared to RR 64,101 million in the prior year.

• Free cash flow for the six months was RR 2,614 million, down from RR 38,036 million year-over-year.

• Net debt increased to RR 60,973 million from RR 6,344 million as of 30 June 2024.

• Basic and diluted EPS for the six months was RR 5.63, up from RR 5.06 year-over-year.

Outlook and guidance

• Management expects continued market challenges due to excess midstream inventories and ongoing sanctions.

• The company plans to maintain operational stability and liquidity, with no significant reduction in activity anticipated.

• No dividends were declared for 2024, reflecting a conservative approach amid uncertainty.