Dipped Products Group remains resilient in face of difficult year

Friday, 9 May 2014 01:17 -     - {{hitsCtrl.values.hits}}

The Hayleys Group subsidiary, Dipped Products, has recorded a consolidated turnover of Rs. 23 b turnover in the financial year ending 31 March 2014. In a statement the Company said despite numerous challenges encountered during the year – including the forced closure of the latex glove manufacturing factory at Rathupaswala, since 30 July 2013 – DPL sustained its revenue base with a marginal 2.4% decline in turnover. DPL’s Hand Protection sector reported a 9% reduction in turnover to Rs. 13.4 b from Rs. 14.7 b in the preceding financial year. However, the Sri Lankan manufacturing FOB turnover declined by 13% during the period from Rs. 8.3 b in 2012/13 to Rs. 7.2 b. The Plantation sector posted an increase in turnover, reflective of a 6% growth amounting to Rs. 10.4 b, up from Rs. 9.8 b in 2012/13 Group Profit Before Tax (PBT) for the reporting period declined by 29% to Rs. 1.5 b, in comparison with Rs. 2.2 b in the previous financial year. Contribution to PBT from the Hand Protection sector was Rs. 910 m, compared to Rs. 1.3 b in 2012/13, thus recording a decline of 32%. The reduction is directly attributable to the losses in production at Rathupaswala manufacturing facility. Contribution from Plantations to PBT witnessed a reduction of 20%, declining from Rs. 928 m in the previous financial year to Rs. 747 m during the reporting period, due largely to the combined effects of adverse weather and wage increase. Group Profit After Tax (PAT) declined by 35% to Rs. 1.2 b down from Rs.1.8 b in the previous financial year. Dipped Products (Thailand) Ltd., the medical glove manufacturing operation improved its overall performance during the financial year while the contribution from Icoguanti S.p.A, DPL’s Italian marketing operation rose by 41% versus previous year. Speaking on the performance of DPL, Chairman Mohan Pandithage credited the Group for withstanding a challenging operating environment in 2013/14. DPL has managed to overcome a very trying financial year, and has demonstrated its’ ability to sustain the business, yielding satisfactory results,” noted Pandithage. “The Company undertook a series of quick and critical decisions during the year to sustain the immediate and future performance of DPL. As a result, in 2013/14, the Company incorporated a fully-owned subsidiary DPL Premier Gloves Ltd., a new manufacturing facility established at the Biyagama Export Processing Zone to manufacture and export rubber gloves. The new facility will be key in moving DPL to new phase of growth,” he noted. Managing Director Dr. Mahesha Ranasoma cited DPL’s loyal customers as the core to its performance in the financial year. “We are, indeed, thankful to our customers for their support at what has been the most difficult operating period for DPL. Our customers extended their fullest support and cooperation and in turn we assure them of our commitment to serve them to the best of our capabilities in the future, as we have done in the past,” he noted. Dr. Ranasoma further added that DPL won the ‘Best Innovative Model for CSR’ Award from JASTECA (Japan Sri Lanka Technical & Cultural Association) for its Corporate Social Responsibility project FirstLight during the financial year. The FirstLight initiative reflects DPL’s commitment towards business sustainability in which economic, environmental and social factors are integrated in order to empower smallholder rubber farmers to achieve their maximum capability as well as empowering farmer communities through capacity building activities. Through FirstLight, DPL’s mission is to introduce and promote ethically produced gloves to the world market.