Dipped Products Group crosses Rs 2 bn PBT in 2012/2013
Dipped Products PLC, the Hayleys Group subsidiary that accounts for
5% of the global non-medical rubber glove market, posted strong
financial performance for 2012/2013. In a filing to the Colombo Stock
Exchange, Dipped Products reported a growth in turnover of 20% equating
to Rs. 23.7 bn and a profit before tax of Rs. 2.2 bn in the 12 months
ending March 31, 2013.
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Dr.
Mahesha Ranasoma |
Mohan
Pandithage |
Group’s Hand Protection sector crossed the Rs 1 bn PBT threshold for
the second consecutive year, whilst the Plantation sector contributed
Rs. 963 mn to the Group PBT.
The Hand Protection sector increased turnover by 9% to Rs. 14.7 bn
with revenue from glove manufacturing operations improving 10% to Rs.
11.2 bn. Turnover from Sri Lankan glove manufacturing operations
improved by 9% to Rs. 8.6 bn, while Dipped Products (Thailand) Ltd, the
medical glove manufacturing operation, increased turnover by 11% to Rs.
2.5 bn. Contribution from ICOGUANTI S.p.A, the Company’s Italian
marketing operation rose by 4% to Rs. 4.1 bn. The Plantation sector
recorded a turnover of Rs. 9.8 bn, an approximate 40% YoY growth.
Overall market conditions in Europe remained challenging during the
year. With Europe accounting for nearly 40% of the Group’s business
these conditions were successfully countered by the Company’s
concentrated investments into marketing and efforts to gain deeper
insights on changing customer needs. Speaking on the performance of DPL,
Chairman, Mohan Pandithage cited the Company’s pre-emptive marketing
strategies as core to its ability to overcome the otherwise tough
challenges in global markets. “DPL’s engagement process with existing
and new customers enabled the Company to offer solutions that better
matched their market requirements”, noted Pandithage. The intensive
marketing efforts during the year also enabled DPL to penetrate into new
markets such as Eastern Europe including Russia.
Managing Director, Dr. Mahesha Ranasoma cited that in addition to
marketing efforts internal cost management through Lean Manufacturing
was key to the year-end performance whilst declining natural rubber
prices through the year enabled a favourable price regime.
In December 2012, DPL was named winner of the Asia Responsible
Entrepreneurship Awards 2012 for Southeast Asia, in the ‘Investment in
People’ category in recognition of the Company’s efforts towards
championing sustainable and responsible entrepreneurship. DPL’s
operations are grounded on a few powerful beliefs; being an ethical
glove manufacturer, integrating sustainability principles into business
and uncompromising quality.
Established in 1976, Dipped Products is one of the leading
non-medical rubber glove manufacturers in the world, and accounts for a
five percent share of the global market. The company’s products now
reach 68 countries.
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