Sarine Technologies, a technology provider for the diamond industry, has disclosed a decline in revenue and a notable decrease in earnings during the initial half of 2023, attributed to a slowdown in demand for the company’s manufacturing equipment.
The Israel-based company reported a 24% year-on-year decrease in sales, totaling $23.7 million, for the six-month period concluding on June 30. In terms of profit, there was a significant drop of 85%, reaching $953,000. This decline was primarily a consequence of reduced sales and a less favorable product mix, ultimately leading to diminished margins.
Sarine attributed the dampened consumer demand, partially influenced by elevated inflation and rising interest rates. Furthermore, the gradual post-pandemic recovery in China contributed to the sluggishness in demand.
The company highlighted, “With a decline in the sale of polished diamonds, and the subsequent reduction of rough diamonds in the pipeline, the midstream effected less manufacturing activities.” Consequently, this shift had an impact on Sarine’s conventional business operations related to capital equipment sales, alongside a limited effect on its inclusion scanning services.
It’s worth noting that Sarine Technologies specializes in advanced technological solutions for the diamond industry, encompassing various facets of the supply chain.
