Dipped Products sustains strong growth

GROWTH: The Dipped Products Group (DPL) has sustained strong profit and turnover growth in the nine months ending December 31, 2006.

The Hayleys Group’s multinational hand protection company which also has a significant interest in plantations, has reported that profit after tax has more than doubled at the end of the third quarter of 2006-07, growing 125 per cent over the corresponding nine months of the previous year to Rs 528 million. Turnover for the period was up 40 per cent to Rs 7,163 million.

DPL’s nine-month profit before tax at Rs 589 million reflected a growth of nearly 100 per cent.

“These figures represent a solid performance from all manufacturing facilities in Sri Lanka, and help mitigate to some extent, the losses in Thailand,” a spokesman for Dipped Products said.

“Although our facility in Thailand contributed substantially to turnover, higher latex prices and the strength of the Thai Baht against the US Dollar continued to erode margins.”

However, the wider acceptance of the medical gloves manufactured by Dipped Products (Thailand) Ltd which was reflected in stronger sales over the previous year and led to higher utilisation of plant capacity in the period reviewed, augurs well for the future prospects of this venture, the spokesman said.