Dipped Products 3Q revenue Rs 9.2 b; post-tax profit Rs. 304 m
Dipped Products PLC (DPL), the Hayleys Group’s multinational rubber
glove manufacturing business which also owns and manages Kelani Valley
Plantations PLC has reported a turnover of Rs 9.2 billion for the nine
months ending December 31, 2008, achieving a 15 per cent growth over the
corresponding period of the previous year.
According to figures released to the Colombo Stock Exchange this
week, turnover from Hand Protection grew 12 per cent to Rs 7.2 billion
despite an export volume drop of 7 per cent from Sri Lankan
manufacturing operations, while turnover from Plantations grew 34 per
cent to Rs 2.5 billion before adjusting for inter-segmental sales.
Dipped Products Thailand, the Group’s medical glove manufacturing
business performed substantially better and avoided losses in its final
quarter ending December 2008 with encouraging improvements in
production, sales volume and earnings.
The increase in Hand Protection turnover came mainly from DPL’s
Italian marketing company, ICOGUANTI S.p.A and higher revenue obtained
by exports from Sri Lanka due to better prices in the period under
review, the Company said.
Turnover growth in the Group’s plantations business came from a 37
per cent improvement from tea due to higher production and better prices
and a 27 per cent increase in revenue from rubber.
However, high latex prices and escalation in the cost of energy
during the first half of the year eroded margins in local Hand
Protection manufacturing in the period reviewed, resulting in lower pre
and post tax profits at Group level. Group profit before tax, at Rs 402
million reflected a decline of 7 per cent, while post tax profit dropped
11 per cent to Rs 304 million.
Commenting on these results, DPL Managing Director J. A. G.
Anandarajah said the Group had arrested the rate of decline in profit
recorded for the first half of the year through increased prices.
He said that local manufacturing improved its performance in the
third quarter following reductions in rubber and fuel prices. However,
the continuing strength of the Rupee and indications of softer demand in
global markets could keep the Group’s local manufacturing businesses
under pressure in the final quarter, he said.
Established in 1976, Dipped Products is one of the leading
non-medical rubber glove manufacturers in the world, and accounts for a
5 per cent share of the global market. |