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Hamad Al Sareeh, CEO of United Mining Industries Co.
United Mining Industries Co. was resilient to price fluctuations thanks to increased local demand amid the company’s contribution to the Saudi Vision 2030 projects, reflecting customer confidence in its product quality, CEO Hamad Al Sareeh told Argaam in an interview.
The top executive indicated that the company boasts a stable availability of gypsum resources from its quarries licensed by the Ministry of Industry and Mineral Resources. He added that no remarkable increases in the costs of imported raw materials have been witnessed, which helped maintain steady production costs.
Moreover, United Mining’s new marketing strategy has proven effective in boosting its sales. This was due to the introduction of new value-added innovative products and the expansion of export channels, coupled with stronger sales of mega projects, said the CEO, noting that the company is working to enhance profit margins by further developing value-added products.
Al Sareeh explained that the company's sales and operating profit in H1 2024 rose by 5.5% and 20% YoY, while its net profit for the six-month period declined by 36% on an annual basis amid the inclusion of a SAR 14.4 million provision for the lawsuit with the General Authority for Competition (GAC).
United Mining, according to the CEO, is likely to post robust results in H2 2024, on par with those of the first half, with improved profit margins. This shall come amid higher price levels and continued growth in local and international demand.
He highlighted that the company would continue to strive to overcome potential challenges and achieve its strategic goals.
According to data available to Argaam, United Mining's net profit fell to SAR 11.3 million by the end of the first half of 2024, down 36% from SAR 17.8 million in H1 2023.
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