Sunday 1 August 2010

Damas Reports Full-Year $520 Million Loss as Provisions Rise, Sales Drop - Bloomberg

Damas International Ltd., a Dubai based jewelry maker and retailer, reported a full-year loss as it set aside money to cover losses from investments and from falling sales.

The loss in the 12 months through March was 1.9 billion dirhams ($523 million), compared with a profit of 217.3 million dirhams in the 15 months to March 2009, the company said in a statement to Nasdaq Dubai today, without giving a comparable full-year figure. Non-recurring expenses and impairment charges were 1.92 billion dirhams, Damas said.

Damas’ annual revenue declined 31 percent as the sale of gold jewelry fell due to a “significant” increase in gold prices and a drop in demand from the impact of the global economic crisis, Damas said in the statement. The company booked one-time charges due to the decline in the value of investments including in joint ventures, as well as slow-moving inventory and overdue money owed to it."

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