Sarine Technologies saw a drop in revenue and a sharp slide in earnings for the first half of 2023 as demand for the company’s manufacturing equipment slowed.

Sales declined 24% year on year to $23.7 million in the six months that ended June 30, the Israel-based producer of technology for the diamond industry reported Sunday. Profit plummeted 85% to $953,000, as lower sales and a weaker product mix reduced margins.

High inflation and rising interest rates dented consumer demand, as did a sluggish post-pandemic recovery in China, Sarine explained.

“With a decline in the sale of polished diamonds, and the subsequent reduction of rough diamonds in the pipeline, the midstream effected less manufacturing activities,” the company said. “Appropriately, our traditional business of selling capital equipment and, to a much lesser extent our inclusion scanning services, were affected.”

 

Main image: A Galaxy scanning machine. (Sarine Technologies)