De Beers Sales Soften Ahead of Holiday Shutdown

RAPAPORT… Revenue slowed at De Beers’ latest sales cycle as African manufacturers prepared to close for Christmas.

Proceeds from the miner’s 10th and final sale of 2021 — which included the December sight as well as auctions — slid 27% year on year to $332 million, down from $452 million in the equivalent period of 2020, the company reported Wednesday. Sales were also 24% lower than the $438 million De Beers registered during this year’s ninth cycle.

Nonetheless, US consumer demand for diamond jewelry remained strong before the festive season, De Beers noted.

“Rough-diamond demand and midstream sentiment continued to be positive in the final sales cycle of 2021, although as anticipated, we saw some impact on sales ahead of the seasonal closure of polishing factories in southern Africa over the Christmas period,” explained De Beers CEO Bruce Cleaver.

However, even with the slowdown, De Beers’ overall diamond sales for the full year are higher than pre-pandemic levels and significantly above 2020 figures, the company noted. This strength is likely to continue into 2022, it added.

“Consumer demand for diamond jewelry is continuing to perform very well over the key holiday period, so we head towards the new year with positive trading conditions and industry sentiment,” Cleaver said.

Image: De Beers sight boxes. (De Beers)