28-2-2020
De Beers has posted its worst earnings since 2009 as its profit fell by 50 percent in 2019 to US$558 million.
The miner’s total revenue declined 24 percent, with a 26 decrease in rough diamond sales amid ongoing challenges on diamond oversupply, demand for rough diamonds from polishers and cutters was weak due to the impact of US-China trade tension and the closure of US retail outlets. Yet, the coronavirus has delayed the signs of improvement in business.
Despite the weak performance, De Beers CEO Bruce Cleaver said: “I’m actually very proud about what De Beers did in 2019. It was not an easy year. We led an industry. We spent a lot of time speaking to customers, to bankers and to retailers to give them confidence that De Beers thinks there’s a great future here.” The company is assessing the way it sells diamonds and may axe accredited buyers at the end of this year, according to people familiar with the matter.
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