Dipped Products Group demonstrates continued resilience
Thursday, 6 February 2014 00:00
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Sustains Group Turnover to Rs. 17.4 b in 3Q 2013-14
Dipped Products PLC, the Hayleys Group subsidiary that accounts for 5% of the global non-medical rubber glove market, recorded a turnover of Rs. 17.4 billion, a marginal decline of 0.4% compared to the same period in the previous financial year.
In a filing to the Colombo Stock Exchange, DPL reported a 7% reduction in turnover of the hand protection sector, to Rs. 10.2 billion from Rs. 11.0 billion, whereas the plantations sector reported a 9% growth in turnover to Rs. 7.8 billion, from Rs. 7.1 billion during the reporting period.
Local manufacturing FOB turnover dropped by 11% to Rs. 5.5 billion from Rs. 6.2 billion during the reporting period, due to an impact of closure of the latex glove manufacturing factory at Rathupaswala, since 30 July 2013.
Group Profit Before Tax (PBT) for the reporting period was Rs. 1.1 billion versus Rs. 1.6 billion last year. Contribution to PBT from the hand protection sector reduced to Rs. 779 million from Rs. 1.0 billion while the contribution to PBT from Plantations reduced to Rs. 429 million from Rs. 545 million in the corresponding period of the previous financial year, largely due to cost increases as a result of wage hike.
Elaborating on the Quarterly performance, Dipped Products Managing Director Dr. Mahesha Ranasoma noted that the closure of the glove manufacturing factory at Rathupaswala continued to impede the overall Group performance. He further noted that the alleged well water quality issues, raised by interested parties against the factory were baseless.
With a view to enhance the group’s commitment towards its’ loyal customer base, the company established a new subsidiary during the reporting period, with an investment of Rs. 1 billion in the Biyagama BOI Zone. Dr. Ranasoma also announced the appointment of R.K. Witanachchi, who assumed duties from 1 January 2014 as Deputy Managing Director.
Established in 1976, Dipped Products is one of the leading non-medical rubber glove manufacturers in the world. The company’s products now reach 68 countries.
The Board of Directors of Dipped Products PLC comprises A.M. Pandithage (Chairman), Dr. M. Ranasoma (Managing Director), R.K. Witanachchi (Deputy Managing Director), F. Mohideen, K.A.L.S. Fernando, L.G.S. Gunawardena, S.C. Ganegoda, K.D.D. Perera, M. Bottino, V.R. Gunasekara and S. Rajapakse.
