Sarine, a diamond technology company, achieved a $1 million profit for the first half of 2024. This marks a turnaround from a loss in the previous fiscal year.
The company experienced a 37% drop in sales of traditional capital equipment through June 30, 2024. This decline was attributed to difficult conditions in natural diamond manufacturing.
However, this decline was counterbalanced by an 11% increase in recurring fees from the use of existing hardware. These fees now represent over 70% of Sarine’s total revenue.
The increase was driven by the success of the new Most Valuable Plan for small natural rough diamonds and advancements in rough planning technologies for lab-grown diamonds.
Additionally, Sarine benefited from cost-cutting measures and the opening of a GCAL by Sarine lab in India, aimed at supporting the Indian lab-grown diamond industry. The company also introduced new technology to address environmental, social, and governance (ESG) concerns and comply with G7 sanctions on Russian diamonds.
Sarine’s net profit rose by 7.2% to $1.02 million in the first half of 2024. This is a significant recovery from the $2.8 million loss reported in 2023, following an $8.8 million profit in 2022.
Based in Israel, Sarine reported that the ongoing hostilities involving Hamas and Hezbollah have had minimal impact on its operations so far. However, some younger employees have been called up for military reserve duty.
