Dipped Products doubles first half profit with strong export growth

Increased export volumes and higher prices have helped Dipped Products (DPL), the Hayleys Group's multinational hand protection business to more than double profit after tax in the first half of 2005-06, despite the adverse effect of exceptionally high latex prices on the performance of its new medical glove manufacturing plant in Thailand.

The Group comprising local and international hand protection manufacturing and marketing operations and plantation companies, has reported profit after tax of Rs. 345 million for the six months ending September 30, 2006, a growth of 117 per cent over the corresponding period of last year.

Profit before tax at Rs. 393.5 million, reflected a growth of 92 per cent in the period reviewed, on a turnover of Rs. 4,665.4 million, which was up 39 per cent.

DPL's income statements released to the Colombo Stock Exchange indicate that Earnings per Share grew by nearly 2.3 times to Rs. 4.69 as at September 30.

In segmental performance, DPL's hand protection businesses reported a turnover of Rs. 3,668.8 million, following a healthy growth of 44.5 per cent over the first half of last year. Plantations generated a turnover of Rs. 1,212 million, reflecting a growth of 25.5 per cent.

Profitability in the plantation sector was particularly noteworthy, with pre tax profit of Rs. 207.9 million, a growth of 103.6 per cent. Kelani Valley Plantations Ltd., (KVPL) had increased its revenue from rubber by 69 per cent and from tea by 10 per cent in the six months reviewed, to post a pre tax profit of Rs. 194 million.