Dipped Products Group crosses Rs. 2 b PBT in 2012/2013

Thursday, 16 May 2013 00:00 - - {{hitsCtrl.values.hits}}

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 b and a profit before tax of Rs. 2.2 b in the 12 months ending 31 March 2013.

The Group’s Hand Protection sector crossed the Rs. 1 b PBT threshold for the second consecutive year, whilst the Plantation sector contributed Rs. 963 m to the Group PBT.

The Hand Protection sector increased turnover by 9% to Rs. 14.7 b with revenue from glove manufacturing operations improving 10% to Rs. 11.2 b.

Turnover from Sri Lankan glove manufacturing operations improved by 9% to Rs. 8.6 b, while Dipped Products (Thailand) Ltd., the medical glove manufacturing operation, increased turnover by 11% to Rs. 2.5 b. Contribution from ICOGUANTI S.p.A, the Company’s Italian marketing operation rose by 4% to Rs. 4.1 b. The Plantation sector recorded a turnover of Rs. 9.8 b, 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 5% of the global market. The company’s products now reach 68 countries.

The Board of Directors of Dipped Products PLC comprises A.M. Pandithage (Chairman), Dr. M. Ranasoma (Managing Director), N.Y. Fernando, R. Seevaratnam, F. Mohideen, K.A.L.S. Fernando, L.G.S. Gunawardena, S.C. Ganegoda, K.D.D. Perera, M. Bottino, R.M.T. Premarathna and V.R. Gunasekara.