In the first quarter of 2024, Sarine Technologies Ltd, a global leader in precision technology products for diamonds and gems, experienced positive trends and a return to profitability. Lower inventory levels of natural polished diamonds and significant reductions in rough diamond prices contributed to this recovery, bolstering Sarine's core businesses.
With implemented reductions in operating expenses, Sarine achieved profitability in Q1 2024. Additionally, new services launched during this period are gaining traction and generating additional recurring revenue streams for the company. These include the Most Valuable Plan™ (MVP) paradigm for optimal planning of small rough diamonds, adaptation of rough planning technologies to lab-grown diamonds (LGD), and the launch of GCAL by Sarine LGD grading lab in India.
The combination of Sarine's AutoScan™ Plus and Journey™ solution is well-positioned to address Environmental, Social, and Governance (ESG) issues for luxury brands. Collaborating with DeBeers' subsidiary Tracr™ also provides verifiable data for G7 sanctions on Russian-sourced diamonds.
Despite economic challenges in China and a slowdown in the LGD segment in the U.S., Sarine saw a 27% increase in revenue compared to the previous quarter. While natural diamond industry conditions have improved, uncertainties remain regarding G7 sanctions and the market split between LGD and natural diamonds.
Looking ahead, Sarine anticipates continued growth in its traditional businesses, driven by improved profit margins and the adoption of new services. The company aims to capture market share in the LGD segment and expand its offerings to address ESG concerns and comply with sanctions regulations.
