Dipped Products profit up Q3 end
Continuing strong performances by businesses in the Hand Protection
segment in the third quarter enabled Dipped Products PLC (DPL), the
Hayleys Groupís globally positioned rubber gloves business, to improve
overall results for the nine months ending December 31 and lessen the
impact of losses from its Plantations segment.
Dipped Products factory in Thailand
In results released to the Colombo Stock Exchange this week, DPL,
comprising manufacturing operations in Sri Lanka and Thailand, a
marketing company in Italy and a plantation company, reported turnover
of Rs 8.3 billion and pre-tax profit of Rs 398 million, despite the
plantation company showing a loss of Rs 215 million for the period
The Hand Protection segment more than doubled its operating profit
from Rs 297.9 million in the first nine months of last year to Rs 646.2
million at the end of the third quarter of the current year, although
turnover from the sector declined due to lower prices.
A noteworthy contribution to performance came from Dipped Products
(Thailand) Limited (DPTL) the Groupís medical glove manufacturing
business, which posted a pre-tax profit of Rs 82 million and increased
turnover by 20 percent to Rs 1.1 billion.
Commenting on these results, DPL Managing Director J. A. G.
Anandarajah said: ďThe Group has performed better than expected at the
beginning of the year by recouping volumes, substantially reducing
borrowings and maintaining margins. Consequently, overall results are
much better than they were at the end of the second quarter.Ē He said
the performance of DPTL was particularly encouraging as the company has
ended its financial year on December 31, 2009 with a pre-tax profit of
around Rs 100 million, which would be consolidated with the Groupís year
He disclosed that a project to expand production capacity by 50
percent in Thailand is scheduled to commence shortly.
In the plantation sector, Kelani Valley Plantations PLC performed
better in its final quarter of the year. Improved commodity prices
helped to reduce the losses incurred earlier in the year as a result of
a 42 percent increase in wages and crop losses due to bad weather,
The Group reduced its net finance costs by 63 per cent to Rs 71.7
million by local manufacturing operations trimming borrowings by around
Rs 500 million and benefitting from lower interest rates. The Groupís
profit before tax of Rs 398 million for the nine months reflect a
decline of only 1 percent compared to the same period in the previous
year, in sharp contrast to the 37 per cent decline seen at the end of
the second quarter.
Group profit after tax at Rs 282 million was lower by 7 percent, as
against a 51 per cent drop for the six months that ended on September