Dipped Products turnover Rs. 14.5b

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 December 31, 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 percent, the DPL Group said in a filing with the Colombo Stock Exchange.

Local Manufacturing recorded FOB turnover growth of 26 percent 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 percent, the company said. Turnover from ICOGUANTI S.p.A., DPL's Italian marketing company grew 15 percent 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 the 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 5 percent share of the global market. The company's products now reach 68 countries.