De Beers reports 49 percent fall in profit for 2012

Profits and sales at De Beers, part of mining giant Anglo American, saw double-digit fall in profit in 2012 the year described by the company as “challenging.” De Beers, which was acquired by Anglo American last year, reported 49% fall in underlying profits to 506 million dollars.

The company reported a 16.4% fall in revenues to 6.07 billion dollars, with sales of rough diamonds falling 15.4% to 5.5 billion dollars due to a fall in demand. De Beers said it anticipates “moderate” growth in diamond jewellery demand in 2013, thanks to demand in China and India compared to 2012.

It continues to focus on expanding its store network in China, a market of “significant opportunity” for high-end jewellery brands.The retailer opened stores in Shanghai and Nanjing and operates five stores in China to date, with an additional store scheduled to open in 2013.

Franchise partners will open further stores in Kuala Lumpur, Baku and Vancouver this year. The retailer currently operates 43 stores in leading diamond consumer markets around the world.

De Beers flagship store, Shanghai