Dipped Products records satisfactory results in Q1

Dipped Products Group (DPL) closed its first quarter ending June 2015 with a turnover of Rs. 5.6 billion and Profit Before Tax (PBT) of Rs. 176 million.

The Hand Protection Sector contributed Rs. 196 million in profits to group PBT, a 38 percent dip for the corresponding period in the last financial year.

This was mainly on account of pressure on margins due to strong competition from the manufacturers in the region.

The plantation sector is impacted by the downturn in global tea demand and low resulted in a Rs. 20 million loss during the quarter versus a profit of Rs. 126 million in the previous financial year.

"We are continuously focusing on cost reduction in our operations to defray pressure on margins.

Our newly commissioned capacity for household gloves is now into commercial production and we look forward to enter the industrial supported glove market in Q2 as we are now ready to commission our new industrial glove manufacturing factory, DPL Universal Gloves Limited at Biyagama, Export Processing Zone," said DPL Managing Director, Dr. Mahesha Ranasoma.

Set up in 1976, Dipped Products is one of the leading non-medical rubber glove manufacturers in the world, and accounts for a 5 percent share of the global market.

The company's products now reach 68 countries. DPL is a subsidiary of the Hayleys Group.