De Beers’ 2011 Sales, Profits Soar

De Beers reported $7.3 billion in total sales for the year 2011, a 26 percent jump over the year before.

The company’s underlying profits totaled $968 million, up an impressive 62 percent from the prior year.

Sales of rough diamonds by its subsidiary Diamond Trading Company increased 27 percent to $6.5 billion.

Other highlights of the financial statement:

  • Diamond production totaled 31.3 million carats, down 5 percent from 2010’s 33 million carats.
  • Overall, DTC prices increased 29 percent over the year
  • The company’s retail co-venture with LVMH, De Beers Diamond Jewellers, reported “growth in sales across all regions, with Greater China particularly strong,” the company said. The company said that it expects it will continue to grow this year.

“Barring a global economic shock, we expect to see continued growth in global diamond jewellery sales, albeit at lower levels than the exceptional 2011 growth,” a company statement said. “This will be driven by the overall strength of the luxury goods market, improving sentiment in the U.S., continuing growth in China, and the positive impact of the 2011 polished price growth on retail jewellery prices.”

Read JCK senior editor Rob Bates’ interview with De Beers CEO Philippe Mellier.

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