ALROSA (ALRS) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was RR 239,067 million, down from RR 322,567 million in 2023, reflecting a challenging diamond market and reduced demand.

• Net profit for 2024 was RR 19,246 million, a significant decrease from RR 85,182 million in 2023, mainly due to lower sales, higher costs, and increased impairment losses.

• The company maintained a strong liquidity position, with cash and cash equivalents rising to RR 81,601 million at year-end 2024.

• Dividends of RR 18,339 million for H1 2024 and RR 14,877 million for 2023 were approved and paid.

Financial highlights

• Gross profit fell to RR 85,381 million in 2024 from RR 149,683 million in 2023.

• Operating profit dropped to RR 30,535 million from RR 106,318 million year-over-year.

• EBITDA for 2024 was RR 78,638 million, down from RR 140,165 million in 2023.

• Free cash flow improved to negative RR 17,645 million from positive RR 2,187 million, reflecting higher capital expenditures.

• Net debt increased to RR 107,915 million from RR 36,138 million, with a Net Debt/EBITDA ratio of 1.37 (2023: 0.26).

• Basic and diluted EPS was RR 2.93, down from RR 11.80 in 2023.

Outlook and guidance

• Management expects continued market pressure due to excess diamond inventories and weak demand, with ongoing supply reductions and price flexibility.

• The company anticipates further cost increases from inflation, higher wages, and a rise in the Russian income tax rate from 20% to 25% in 2025.

• No impairment was identified for non-current assets as of year-end, but sensitivity analysis shows potential risk if diamond prices fall or the ruble strengthens.