Dipped Products posts best ever performance in'06-07

Attributable profit up 94%, pre-tax profit grows 87%; turnover up Rs 2.3 b to Rs 9.413 b:

Dipped Products (DPL), the Hayleys Group's globally significant rubber glove manufacturing company has posted its best ever annual performance in the year ended March 31, 2007, reporting strong pre and post tax profit growth from its hand protection businesses and its plantation company.

Results released to the Colombo Stock Exchange this week reveal that profit attributable to equity holders grew a spectacular 94 per cent to Rs 557 million on a consolidated DPL Group profit before tax of Rs 775 million, which was up 87 per cent over the previous year. Group turnover grew by a hefty Rs 2,304 million or 32 per cent in the year under review to Rs 9,413 million.

The performance of the Group is particularly noteworthy in the context of the rapid fluctuations in costs it had to contend with during the year, and underscores DPL's inherent capability to perform under demanding circumstances.

In DPL's segmental results, turnover from Hand Protection increased remarkably by nearly 38 per cent to Rs. 7,566 million, with turnover from manufacturing operations up 53 per cent to Rs. 5,410 million.

Nearly three-fourths of the growth was attributable to an increase in sales revenue of 43 per cent in Sri Lanka.

DPL's Hand Protection operations in Sri Lanka turned in a buoyant performance despite the continued turbulence in rubber prices and increases in other input costs. The profit of Rs 460 million attributable to this segment is an improvement of 79 per cent over the Rs 257 million registered in 2005-06.