Q3 Loss for Sarine amid Economic Uncertainties
November 29, 23
(IDEX Online) - Sarine announced a 28 per cent drop in Q3 revenue to $10.4m as economic uncertainties persisted in the US and China.
The Israel-based diamond tech company said it made a loss of almost $1m in the three months to 30 September.
"Overall industry conditions are likely to remain challenging for the rest of FY2023," the company said.
It also noted that 10 per cent of its workforce had been called up as IDF reservists in the war against Hamas, following its "brutal and reprehensible attacks on Israel".
Sarine said a significant drop in the quantities of rough diamonds entering the pipeline had impacted its traditional businesses of selling capital equipment and, to a lesser extent, its inclusion scanning services.
"The holiday outlook remains uncertain, and budget-focused shoppers in the U.S. may show a further shift to LGD, further denting sales of 1- to 2-carat naturals," it said in a review of the last nine months.
"The extent of this trend, and the overall end-of-year holiday season in the West and the Chinese New Year buying early in 2024, will determine how fast the natural diamond industry recovers."
India's two-month voluntary freeze on rough imports, which went into effect October 15, has further helped reduce inventories, it said, together with a late spurt of buying by US jewelers completing their holiday purchases and seeking goods before India's Diwali break in November.
Sarine said group revenue and net profit for the last nine months fell 25 per cent and 100 per cent respectively year on year to $34m and zero respectively.