ALROSA Q3 and 9M 2018 IFRS results

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IR-release: MDA Q3 / 9M 2018
Presentation: MDA Q3 / 9M 2018
IFRS Consolidated Statements for Q3 / 9M 2018
IFRS Consolidated Statements for Q3 / 9M 2018_excel

Moscow, 08 November 2018 – ALROSA, the world's leader in diamond mining, announces its IFRS financial results for Q3 and 9M 2018.

Key highlights for 9M 2018

Key highlights for Q3 2018

Outlook: our guidance for 2018 sales has been revised to 37–38 million carats due to weaker demand for small-size rough diamonds in 2H 2018.


ALROSA’s CEO Sergey Ivanov commented on the results:

“Our strong financial performance was driven by the recovery in demand for end products and higher prices, coupled with our efforts to improve margins through a more aggressive sales policy and implementation of the operational excellence programme. The Company increased its EBITDA margin by 7 p.p. to 54%, reaffirming its industry leadership both in market share and profitability. Stronger operating cash flow and a more balanced capex profile helped boost our free cash flow by 38% to RUB 86 bn and, ultimately, improve the Company's financial stability, with net debt to EBITDA ratio down to 0.2 vs 0.7 in the previous year.

In October 2018, the Company started commercial mining operations at the Verkhne-Munskoye deposit, which will produce 1.8 million carats of diamonds per year. With the deposit put on stream and an increased output at the existing assets, ALROSA will be able to partially make up for the volumes lost due to the shutdown of the Mir underground mine, and increase diamond production to 38 million carats in 2019.

On recommendation of the Supervisory Board, ALROSA's shareholders approved 6M 2018 dividends of RUB 5.93 per share based on a stable free cash flow”.

1 EBITDA stands for earnings for the last twelve months before interest, income tax, depreciation and amortisation calculated for the past twelve months in accordance with the International Financial Reporting Standards (IFRS).

2 FCF (free cash flow) is the operating cash flow net of investments (capital expenditure) in the core business in accordance with the IFRS.

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

This page was last updated on 08 November 2018 at 10.33