Dipped Products Group 1Q turnover up 16%

Dipped Products Group (DPL), the Hayleys Group Hand Protection specialist with a substantial stake in Plantations, has reported turnover from Hand Protection of Rs. 3,439 million in 1Q 2012-13 while the Plantations sector contributed Rs. 2,311 million (both inclusive of inter-segment sales), with the consolidation of turnover from Hayleys Plantation Services, the owners of Talawakelle Tea Estates PLC.

Despite the improvement in the top line, DPL’s consolidated profit before tax for the three months ending 30 June 2012 declined 30 per cent to Rs. 397 million, due to a substantially lower contribution from Plantations as a result of lower rubber prices, a drop in tea and rubber volumes and increased wages. The Plantation sector’s contribution to pre-tax profit reduced from Rs. 294 million in 1Q 2011-12 to Rs. 104 million in the quarter under review, a decline of 64 per cent.

Elaborating on these results, Dipped Products Managing Director Dr. Mahesha Ranasoma said Hand Protection had contributed Rs. 293 million to profit before tax, an improvement of seven per cent. One of the highlights of the quarter reviewed was the commissioning of a bio-mass heater at Hanwella Rubber Products to reduce energy costs, he said.

Sales of ICOGUANTI S.p.A, DPL’s Italian marketing company rose 13 per cent to Rs. 1 billion, while Dipped Products Thailand (DPTL) recorded a turnover of Rs. 575 million.

The DPL Group comprises of Dipped Products owned manufacturing subsidiaries in Sri Lanka and Thailand, the marketing company in Italy and the plantations companies Kelani Valley Plantations PLC (KVPL) and Hayleys Plantation Services (owners of Talawakelle Tea Estates PLC).

Established in 1976, Dipped Products is one of the leading non-medical rubber glove manufacturers in the world, and accounts for a five per cent share of the global market. The company’s products now reach 70 countries.

The Board of Directors of Dipped Products PLC comprises A.M. Pandithage (Chairman), Dr. M. Ranasoma (Managing Director) J.A.G. Anandarajah,  G.K. Seneviratne, N.Y. Fernando,   R. Seevaratnam, F. Mohideen, K.A.L.S. Fernando, L.G.S. Gunawardena, S.C. Ganegoda, K.D.D. Perera and M. Bottino.