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Sarine Revenue Drops Amid Economic Caution

May 18, 2023  |  Avi Krawitz

Sarine Technologies saw revenue decline in the first quarter as economic uncertainty weighed on US consumer confidence and sentiment in the trade.

“The negative macroeconomic environment, driven by as-yet-untamed inflation and dramatically increasing interest rates, continues to take its toll on consumer confidence in the US, the key global market for diamond jewelry,” the provider of technology services to the diamond trade explained in a trading update.

Revenue fell to $11.5 million during the first three months of the year, down 12% from the preceding fourth quarter, the company reported Tuesday. Sarine had revenue of $15.6 million in the comparable first quarter of 2022.

Teething issues relating to the recently launched Meteorite Plus model of its Galaxy inclusion-mapping systems also contributed to the drop, resulting in just six Galaxy machines being delivered during the period. Sarine expects demand for its Galaxy products to rebound once the issues with the Meteorite Plus model have been resolved. Trade-related revenues were up 12% compared to the fourth quarter, despite a drop in digital tender-related revenues resulting from the decrease in rough-diamond supply. 

Group net profit was $800,000, down from around $3.4 million reported a year earlier.

Sarine expects negative macroeconomic conditions to continue to affect its business in 2023. The company noted, however, that it is well-positioned to capitalize on the drive to show traceability across the diamond supply chain, with the International Group of 7 (G7) nations — Canada, France, Germany, Italy, Japan, the UK and the US — calling for implementation of such systems to prevent sanctioned Russian diamonds from entering the market.

Image: Graphic displaying data transfer. (Sarine)


Sarine Revenue Drops Amid Economic Caution

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