ALROSA Q3 and 9M 2019 IFRS results

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IFRS Consolidated Statements for Q3 & 9M 2019
MDA Q3 & 9M 2019 Release
MDA Q3 & 9M 2019 Presentation
IFRS Consolidated Statements for Q3 & 9M 2019_EXCEL

Moscow, 8 November 2019 – ALROSA, the world’s leader in diamond mining, announces its IFRS financial results for Q3 2019.

RUB bn

Q3
2019

Q2
2019

q-o-q

Q3
2018

y-o-y


2019


2018

y-o-y

Diamond sales, million carats, incl.

6.4

8.3

(23%)

6.7

(5%)

25.3

29.1

(13%)

gem-quality

4.3

6.0

(28%)

4.7

(8%)

18.2

21.1

(14%)

industrial

2.1

2.3

(9%)

2.0

4%

7.0

8.0

(11%)

Revenue

45.7

57.4

(20%)

70.1

(35%)

173.6

238.3

(27%)

EBITDA

21.1

25.1

(16%)

40.0

(47%)

77.5

129.1

(40%)

EBITDA margin

46%

44%

2 pp

57%

-11 pp

45%

54%

-9 pp

Net profit

13.5

13.4

0.5%

24.2

(44%)

51.0

82.5

(38%)

Free cash flow2

2.5

2.4

4%

16.0

(84%)

30.8

62.0

(50%)

Net debt3

63.0

35.4

78%

36.6

72%

63.0

36.6

72%

Net debt / LTM EBITDA

0.6x

0.3x

               –

0.2x

               –

0.6x

0.2x

              –

Alexey Philippovskiy, ALROSA’s CFO, commented on the results:

“In 9M 2019, the diamond market was impacted by the oversupply of polished diamonds and challenging situation in India’s financial sector. As major producers have reduced diamond supply by a quarter since the beginning of the year and Indian cutters begin to see stocks gradually winding down, the supply and demand in the diamond pipeline seem to be heading towards balance again. Since early August 2019, the prices and demand have somewhat stabilised resulting in increased monthly sales, with total sales adding 7%, 42% and 2% m-o-m in August, September and October, respectively.

ALROSA’s financials in Q3 2019 saw expected pressure from external factors. Sales went down by 23% q-o-q to 6.4 m carats, and the y-o-y reduction in 9M 2019 amounted to 13% (25.3 m carats). Rough diamond sales in Q3 2019 decreased by 24% q-o-q to $601 m and by 34% in 9M 2019.

Free cash flow in Q3 2019 amounted increased by 4% q-o-q to RUB 2.5 bn, despite the working capital increase of RUB 11.9 bn (up 13% q-o-q) and a minor capex growth (up 2% q-o-q).

Net debt / LTM EBITDA as at the end of Q3 2019 stood at 0.6x, in line with the target leverage and higher than in Q2 2019, which is mainly explained by a 2H 2018 dividend cash payment of RUB 29.8 bn.

In September 2019, the Extraordinary General Meeting of Shareholders resolved to pay 1H 2019 dividends in the amount of RUB 3.84 per share, or RUB 28.3 bn in total, which is equal to 100% of the free cash flow for the period.” (please see the press release)



1 LTM 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 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).

3 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 08 November 2019 at 12.04