Dipped Products Group posts Rs. 15.3 b revenue in 1H 2019/20

Thursday, 7 November 2019 00:47 - - {{hitsCtrl.values.hits}}

Hayleys Group’s subsidiary Dipped Products PLC (DPL), a leader in the global hand protection glove market, reported Rs. 15.3 billion Group turnover for the six months ending September 2019. The Hand Protection sector contributed Rs 8.6 billion to the Group’s top line.

The Dipped Products Group recorded a profit before tax (PBT) of Rs. 450 million for the period ending 30 September 2019 after absorbing Rs. 94 million loss from Plantations sector. The Group’s profit after tax was Rs. 327 million, while the profit attributable to equity holders of the company was Rs. 333 million.

Elaborating on the results, Dipped Products Group Chairman Mohan Pandithage said, “The overall performance of the Group is satisfactory. The Hand Protection sector results were achieved in spite of stiff competition from regional manufacturers. Despite the competition our focus on product innovation and quality allowed us to sustain and even grow in some markets. We also continued to integrate sustainability practices into our businesses, improving our processes to serve the industry year-on-year. The Plantation sector also demonstrated admirable resilience in the face of multiple challenges at a macro and micro level.”

The Group’s Hand Protection sector performed well with gains from performance improvement initiatives in local manufacturing operations. The revenue of ICOGUANTI S.p.A, DPL’s Italian marketing company, remained stable for the period despite weaker economic conditions, but the profitability was negatively impacted by higher cost of sales due to the depreciation of the euro against USD during the period.

The Plantations sector was impacted by lower commodity prices prevailed during the period and higher cost of production arising from wage rate adjustments.

Commenting on the results DPL Managing Director Ng Soon Huat said: “The DPL Group’s results continued to perform well, led by the management initiatives to launch innovative products, maintain a productivity focus and drive production efficiency. We will continue to enhance our customer value proposition through innovative technologies and new product developments. In addition, investing in people development is one of our top priorities to develop future talents in the organisation.” 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 product range comprising over 300 variants of 124 product varieties of natural and synthetic-latex based glovesnow reach 70 countries. The Group also has controlling interests in Hayleys Plantations and the plantations companies comprise both Kelani Valley Plantations PLC (KVPL) and Talawakelle Tea Estates PLC (TTE).

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