Dipped Products doubles post tax profits in 1Q, 2006-07

Dipped Products (DPL), the Hayleys Group's multinational rubber gloves manufacturing business, has doubled post tax profits and multiplied its Earnings Per Share (EPS) by 2.5 times in a strong performance in the first quarter of 2006-07.

In results released to the Colombo Stock Exchange, the DPL Group which is also a key player in the plantation sector, has reported that Group profit after tax rose by a noteworthy 105 per cent to Rs. 207 million on a turnover of Rs. 2,172 million, which reflected an increase of 37 per cent. Pre tax profit, at Rs. 226 million, was up a healthy 77 per cent over the corresponding quarter of last year.

DPL's hand protection business comprises several non-medical rubber glove manufacturing plants that together make it one of the top three global players in the segment and a maiden investment in a medical glove plant in Thailand.

Turnover from hand protection rose to Rs. 1,693 million in the quarter reviewed, an increase of 44 per cent, with major contributions coming from manufacturing in Sri Lanka and Thailand.

In the plantation sector, DPL's plantation company Kelani Valley Plantations Limited (KVPL) increased turnover by 22 per cent to Rs. 586 million with increases from both rubber and tea of 57 per cent and 8 per cent KVPL's profit before tax grew by 31 per cent to Rs. 89 million due to stronger rubber prices but tea showed a marginal drop owing to weaker prices, the company said.