United Mining posts 173% surge in operating profit over 4 years, sets 3 strategic pillars for expansion, efficiency in 2025

Logo of United Mining Industries Co. (UMI)

United Mining Industries Co. (UMI) reported a steady rise in its operating profit over the past four years, rising from SAR 17.52 million in 2020 to SAR 47.84 million in 2024, marking a cumulative growth rate of over 173%.

In 2024, the company's operating profit grew by 5.05% year-on-year (YoY) despite a 5.7% decline in revenues to SAR 226.6 million. The company attributed the drop in revenues to changes in the product mix, which led to a decrease in average realized prices, as well as market challenges in the local market that affected the pace of sales growth.

The growth in operating profit was reflected in a notable improvement in the operating profit margin, which rose from 12% in 2020 to 21.1% in 2024, underscoring the company's enhanced control over operating expenses.

United Mining reported consistent growth in its gross profit margin over the past five years, reaching 30.5% in 2024, compared to 12.17% in 2020. It maintained a higher gross margin in 2024 compared to 2023, despite the decline in revenues. This reflects the company’s ability to control costs, particularly those related to sales, as cost of sales dropped by nearly 7% in 2024.

In terms of sectoral distribution of revenues by activity for 2024, the gypsum products segment continued to hold the largest share, accounting for 62% of total revenues, generating SAR 140 million. This was despite a 6.67% decline compared to 2023, when it had recorded SAR 150 million. This underscores the company’s continued reliance on this segment as its primary revenue source.

In 2025, the company aims to further strengthen its position in the mining and building materials sector through expanding its operational activities and enhancing production efficiency. The focus will be on opening new export markets and broadening its customer base both inside and outside the Kingdom.

United Mining stated that it has developed a growth plan for 2025 based on three strategic pillars, aimed at expanding operational scope and enhancing added value. The first pillar is operational and regional expansion, through opening new markets and increasing production capacity. The second is product diversification, through expanding the product portfolio to support income stream diversification. The third is restructuring the sales and marketing strategy, through developing a more effective marketing plan, improving customer experience, and enhancing service quality.

The company also noted that it is currently conducting several studies in the mining industries sector, reflecting its belief in the sector’s importance and its role within it.

Furthermore, United Mining emphasized its efforts to align its strategy with Vision 2030 goals, through five key pillars aimed at achieving sustainable growth and maximizing national impact:

- Operational and regional expansion: Enhancing the efficiency of the industrial and mining segment, increasing production capacity, and creating job opportunities in alignment with the National Industrial Development and Logistics Program (NIDLP).

- Product expansion: Strengthening local content and reducing dependence on imports.

- Sales and marketing strategy reform: Opening new markets and boosting non-oil exports.

- Investment in natural resources: Maximizing national value chains and providing high-quality products.

- Commitment to national standards and specifications: A commitment that has earned the company a place in major national projects such as NEOM, Qiddiya, and The Line.