Alrosa Ends Difficult Year With Strong Q4

Moscow—Sales fell by double digits for Alrosa in 2020, but the company ended the year on an upswing it says has continued into 2021.

The diamond miner reported Thursday that revenue from rough and polished diamond sales totaled $2.8 billion in 2020, down 16 percent year-over-year. But fourth quarter sales rose 33 percent year-over-year to $1.22 billion.

In volume terms, Alrosa’s annual sales totaled 32 million carats, down 4 percent year-over-year but up more than double in the fourth quarter, as the recovery in consumer demand that started in the second half of the year in China and the United States accelerated.

“Many U.S. retailers launched their holiday offers early to ensure a more even distribution of demand and allow for social distancing,” the company said in the release announcing Q4 and full-year results.

“As a result, the Christmas holiday season in the U.S. kicked off with strong online sales as the pandemic pushed consumers to shop online. Another sustainable trend in the retail sector is the steady recovery of sales in mainland China, where travel restrictions make Chinese consumers spend more domestically.”

Jewelers interviewed by National Jeweler in the month of December said the same; consumers were shopping early to avoid the crowds.

And they were spending money that couldn’t be used for travel, dining out and other experiences on jewelry, particularly diamond jewelry.

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In a Jan. 7 webinar hosted by National Jeweler, guests Edahn Golan, Peter Smith and Sherry Smith all commented on diamond jewelry’s strong performance in 2020, which they attributed to it being a low-risk choice in an uncertain time and the pandemic spurring proposals.

“When people feel stressed and anxious and you’ve got all of this uncertainty in your life, you’re going to make safe choices,” Peter Smith said. “Diamonds are a very safe choice. I’m waiting to see the first T-shirt that says, ‘I’ve got too many diamonds.’

“That just doesn’t happen. They just continue to be a safe choice.”

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In addition to sales declining, Alrosa’s production also dropped in 2020, falling 23 percent in the fourth quarter to 7.1 million carats and declining 22 percent on the year to 30 million carats total.

Alrosa and the world’s other main diamond supplier, De Beers Group, dialed back production last year to save money as COVID-19 halted