Mumbai: Diamond mining giant De Beers announced its financial results for the first half of 2024, revealing a challenging operating environment marked by softening demand and increased competition from lab-grown diamonds (LGDs).

The company reported a 21% decline in total revenue to $2.2 billion compared to $2.8 billion in the same period last year. Rough diamond sales also fell 20% to $2.0 billion from $2.5 billion previously.

De Beers attributed the revenue drop to a 22% decrease in rough diamond sales volume to 11.9 million carats. While the average realised price remained relatively stable at $164 per carat, the overall market conditions impacted the bottom line.

Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) for the period declined 14% to $300 million from $347 million in the prior year. De Beers cited reduced sales volumes and higher unit costs as the primary factors behind the EBITDA decrease.

Despite the challenging market conditions, De Beers highlighted several strategic initiatives undertaken during the period. The company announced its new “Origins” strategy aimed at streamlining operations and reducing costs by $100 million annually. Additionally, De Beers formed new marketing collaborations with leading diamond jewellery retailers – Signet in the US and Chow Tai Fook in China – to boost natural diamond demand.

The diamond giant also introduced DiamondProof, a device designed to distinguish between natural and lab-grown diamonds, a move aimed at addressing the growing competition from synthetic diamonds.

Looking ahead, De Beers anticipates a gradual recovery in demand as midstream inventories decline and consumer confidence improves. However, the company acknowledges the ongoing challenges posed by lab-grown diamonds and the need for continued focus on marketing and product differentiation.