ALROSA Q1 2021 IFRS results

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MDA Q1 2021 Release
MDA Q1 2021 Presentation
IFRS Q1 2021 Consolidated statement
IFRS Q1 2021 Consolidated statement_EXCEL

Moscow, 18 May 2021 – ALROSA, a global leader in diamond mining, announces its IFRS results for Q1 2021.

RUB bn

Q1
2021

Q4
2020

q-o-q

Q1
2020

y-o-y

Diamond sales, m ct, incl.

15.5

17.0

(9%)

9.4

65%

gem-quality

9.7

12.2

(20%)

7.1

38%

industrial

5.8

4.8

22%

2.4

2.5x

Revenue

90.8

98.6

(8%)

62.7

45%

EBITDA

33.5

31.8

5%

30.0

12%

EBITDA margin

37%

32%

5 pp

48%

(11 pp)

Net profit

24.0

21.3

13%

3.1

7.9x

Free cash flow1

52.7

65.2

(19%)

21.8

2.4x

Net debt2

(21.7)

31.2

(169%)

77.4

(128%)

Net debt / LTM EBITDA

(0.2x)

0.4x

-

0.7x

-

Alexey Philippovskiy, ALROSA’s CFO:

“Q1 saw a continued increase in demand for diamond jewelry from end consumers across all key markets, mainly in the US and China. In particular, the US market demonstrated a double-digits growth even against the 2019 results.

Thanks to strong demand and relatively low stocks in the cutting sector, diamond producers managed to significantly improve sales, while prices recovered to the early 2020 levels by the end of Q1’21.

ALROSA’s Q1 sales totalled 15.5 m cts, up 65% y-o-y and 47% more than in Q1'19, delivering robust financial results for the quarter, with RUB 91 bn in revenue and a  5% y-o-y growth in EBITDA which came at RUB 33.5 bn. Impressive sales volumes, which were more than twice as high as production, and a seasonal decrease in capex translated into a 2.4x growth in Free Cash Flow toRUB 52.7 bn, record-high for this period.

On the back of the strong free cash flow, the Company’s net debt turned negative to minus RUB 22 bn. As a result, ALROSA’s leverage (Net Debt / EBITDA) as at the end of Q1 totalled -0.2x (Q4’20: 0.4x).

The Company’s stable cash flow generation and material leverage improvement resulted in historically high half-year dividends – the recommended amount for H2’20 is RUB 70.3 bn, or RUB 9.54 per share. The dividend payment is to be discussed at the Annual General Meeting of Shareholders on 16 June 2021.

Our outlook for the end consumer market remains positive. The market is recovering faster than expected. Meanwhile, diamond supply is still 20% below the pre-COVID levels and the production is unlikely to bounce back in the mid-term.”

 


1 FCF (free cash flow) is the operating cash flow calculated in accordance with the International Financial Reporting Standards (IFRS), net of capital expenditure (posted as Purchase of Property, Plant and Equipment on the consolidated IFRS statement of cash flows).

2 Net debt is the amount of debt less cash and cash equivalents and bank deposits at each reporting date in accordance with the IFRS.

This page was last updated on 18 May 2021 at 10.33