Dipped Products soars with highest turnover of Rs. 46.4 b; PBT of Rs. 7.2 b

Dipped Products PLC (DPL), a global leader in protective handwear and a subsidiary of Hayleys PLC, has delivered phenomenal growth in an extraordinarily challenging year to achieve the company’s highest turnover and profit before tax for the financial year ending 31 March 2021. 

The DPL Group’s turnover increased by 52% to Rs. 46.39 billion while profit before tax increased to Rs. 7.19 billion during the year. 

Commenting on the performance, Dipped Products and Hayleys Chairman Mohan Pandithage said: “DPL’s performance attests to its resilience and adaptability to rapidly changing dynamics, particularly in an unprecedented year such as 2020/21 which led to dramatic shifts in how organisations operate.”

The performance of the year is driven primarily by the Hand Protection sector which demonstrated extraordinary agility in navigating the complexities stemming from the COVID-19 pandemic. The sector delivered a revenue growth of 70% to Rs. 30.41 billion, supported by increased capacity utilisation driven by relentless focus on process efficiencies and productivity coupled with capacity expansion and acquisition of new customers. As prevalent conditions led to disruptions in supply chains, DPL leveraged on the strength of its relationships with local farmers through the DPL Firstlight program to secure continued access to raw materials, thereby ensuring consistent value injection across the rural economy. The Plantation sector also performed commendably.

Meanwhile, the Hand Protection sector delivered a significant growth in PBT during the year, as margins improved supported by operating efficiencies across manufacturing operations and increased contributions from high-value products. The sector’s efforts to drive operational excellence through programs such as TPM, Lean and Six Sigma continue to deliver results through sustained improvements in efficiencies and productivity. Dipped Products (Thailand) Ltd. and ICOGUANTI, the marketing arm based in Italy, also delivered strong growth supported by increased customer penetration. 

DPL Managing Director Ng Soon Huat attributed the sector’s superior performance to relentless efforts by the DPL team to ensure continuity of operations despite many challenges. “Our employees rallied together in delivering the group’s strategy, which enabled us to effectively cater to the increase in demand for gloves during the year.”

Established in 1976, Dipped Products is one of the leading non-medical rubber glove manufacturers in the world, and accounts for a 5% share of the global market. The company’s products now reach 70 countries.

The Board of Directors of Dipped Products comprises Chairman Mohan Pandithage, Deputy Chairman H.S.R. Kariyawasan, Managing Director Ng Soon Huat, Deputy Managing Director Pushpika Janadheera, Dhammika Perera, Sarath Ganegoda, F. Mohideen, S. Rajapakse, N.A.R.R.S. Nanayakkara, S.P. Peiris, K.D.G. Gunaratne, K.M.D.I. Prasad, and Y. Bhaskaran (alternate Director to Dhammika Perera).