United Mining sees higher local demand, targets profit margin growth: CEO

Hamad Alsourayia, CEO, 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 Vision 2030 projects, reflecting market confidence in its product quality, CEO Hamad Alsourayia told Argaam.

The company has a stable availability of gypsum resources from its quarries licensed by the Ministry of Industry and Mineral Resources, he said.

The CEO 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 by introducing new value-added innovative products and expanding export channels, coupled with stronger sales to mega projects, Alsourayia said.

He stated that the company is working to enhance profit margins by further developing value-added products.

United Mining’s sales and operating profits rose 5.5% and 20% year-on-year (YoY), respectively, in H1 2024, but net profit declined 36% YoY due to a SAR 14.4 million provision for the lawsuit with the General Authority for Competition (GAC).

The CEO said the company will 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 local and international demand growth.

He said that United Mining will 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 in the first half of 2024, down 36% from SAR 17.8 million in H1 2023.