Dipped Products reports strong 9-month results

Dipped Products PLC (DPL), the Hayleys Group’s global player in hand protection, has reported turnover of Rs. 14.5 billion for the nine months ending 31 December 2011, following a resilient performance by its rubber glove manufacturing operations.

Businesses in hand protection posted turnover of Rs. 10.4 billion including inter-segmental sales while plantations reported revenue of Rs. 4.7 billion for the period reviewed, reflecting consolidated top line growth of 33 per cent, the DPL Group said in a filing with the Colombo Stock Exchange.

Local manufacturing recorded FOB turnover growth of 26 per cent to Rs. 5.9 billion and Dipped Products Thailand (DPTL), the Group’s medical glove manufacturing operation, achieved sales of Rs. 1.9 billion, up 31 per cent, the company said. Turnover from ICOGUANTI S.p.A., DPL’s Italian marketing company, grew 15 per cent to Rs. 3 billion.

In financial statements released to the Colombo Stock Exchange, the DPL Group said profit before tax of Rs. 2 billion for the nine months, including capital gains of Rs. 1.1 billion from the sale of shares, reflected growth of more than four times over PBT for the corresponding period last year. DPL recorded a profit after tax of Rs. 1.9 billion, including capital gains.

Elaborating on the performance of the Group, DPL Managing Director Dr. Mahesha Ranasoma said the tea sector was under pressure in relation to reduced demand from Middle East markets and cost escalations resulting from the plantation wage increase. On the other hand, the hand protection sector benefitted from softening latex prices, which were passed on through progressive price reductions to the market. However, the overall results were impacted by rising costs and a weak euro, he said.

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 68 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.