Sarine Technologies, a leading Israeli diamond-technology firm, reported its first nine-month loss in 2024 due to weakened demand for natural diamonds. Revenue dropped 10% year-on-year to $30.6 million, resulting in a net loss of $200,000.
Natural Market Decline
The company cited reduced consumer demand in China and the disruption caused by the growing lab-grown diamond market as key factors behind the slowdown in natural diamond manufacturing.
Lab-Grown Diamonds on the Rise
Despite the challenges, Sarine’s lab-grown diamond operations are thriving:
- Revenue from synthetic diamonds more than doubled year-on-year.
- Sarine expanded the capacity of its GCAL by Sarine lab in India, focusing on grading lab-grown diamonds.
- Its rough-planning technology gained traction, with approximately 20% of India’s lab-grown sellers adopting it.
- Sales in the lab-grown sector grew 25% month-on-month in Q3 2024.
Streamlined Operations and Future Potential
To counter the revenue decline, Sarine reduced operating costs by 20% through strict cost-cutting measures. The company expressed optimism about long-term growth, particularly in its recurring revenue streams and the expanding demand for lab-grown diamond grading.
Additionally, Sarine highlighted opportunities in traceability services, which may become critical if G7 sanctions on Russian-sourced diamonds are enacted.