South Africa's De Beers said Friday that diamond sales sparkled during 2004, boosted by Asian sales, sending net profits soaring by 25 percent to 498 million dollars (383 million euros). The upbeat figures came as the group reported a three percent increase in sales of rough diamonds for the year ending December 31, from the previous year to 5.695 billion dollars (4.38 billion euros). Pre-tax profits for 2004 before amortisation rose 12.0 percent to 652 million dollars, the group said in a statement.

Global diamond jewellery sales grew by about six percent during 2004 when valued in dollars, De Beers said.

"2004 was another good year for the diamond industry," the group said.

"Strong areas of growth were Asia-Pacific, India and the Gulf region with Japan also recording modest growth.

"Against the background of accelerating economic growth in the major diamond consuming countries, diamond jewellery sales performed well," the statement added.

The diamond group warned however that "2005 is likely to be a more challenging year for the diamond industry", adding: "With the transformation of the industry that has taken place over the last few years, there is now growing evidence that diamonds are competing favourably with other luxury products."

De Beers, founded in 1888, produces more than 40 percent of the world's diamonds in terms of value from mines in South Africa, Botswana, Namibia and Tanzania.

The Diamond Trading Company, the retail arm, sells around two thirds of the world's annual supply of rough diamonds.

Mining giant Anglo American, which owns a 45-percent stake in De Beers, said its stake in the diamond company would be 381 million dollars for the year, down from 386 million in 2003.

Copyright Agence France-Presse, 2005