Dipped Products posts improved 1H results

Saturday, 29 October 2011 00:53 - - {{hitsCtrl.values.hits}}

Dipped Products PLC (DPL), the Hayleys Group’s multi-national rubber glove manufacturing business, has posted striking top and bottom line growth for the first half of 2011-12, with higher performance-based growth in manufacturing and capital gains from the sale of shares in the second quarter of the year.

Helped by softening latex prices and strategic initiatives by management, local manufacturing improved volumes by 10 per cent and increased FOB turnover by 41 per cent to Rs. 4.1 billion, enabling the hand protection sector to contribute Rs 7 billion (up 27 per cent) to the Group’s six month turnover of Rs. 9.6 billion.

Turnover from Dipped Products Thailand, the Group’s medical glove manufacturing operation was Rs. 1.1 billion. Sales of ICOGUANTI S.p.A., DPL’s Italian marketing company grew 16 per cent to Rs. 2 billion.

The plantation sector’s contribution was Rs. 3 billion including the turnover of Mabroc Teas which was consolidated from this year.

According to financial statements released to the Colombo Stock Exchange, the DPL Group’s profit before tax for the six months ending 30 September grew more than twofold over the corresponding six months of last year to Rs. 0.7 billion excluding capital gains. Capital gains from the sale of shares was Rs. 1.1 billion.

DPL Managing Director Dr. Mahesha Ranasoma said an emphasis in the second quarter of the year on broadening the supply base, consolidating direct collection of latex, balancing purchases of local and imported latex and the Group’s success in exciting some customers with new products had helped this performance.“We were also able to grow local manufacturing volume by 10 per cent by focusing on new opportunities with key customers and markets,” he explained.

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.