Dipped Products Group 1Q turnover up

Dipped Products Group (DPL), the Hayleys Group Hand Protection specialist with a substantial stake in plantations, has reported turnover of Rs 3,439m from Hand Protection in 1Q 2012-13 while the plantations sector contributed Rs 2,311m (both inclusive of inter-segment sales), with the consolidation of turnover from Hayleys Plantation Services, the owners of Talawakelle Tea Estates PLC.

Despite the improvement in the top line, DPL's consolidated profit before tax for the three months ending June 30, 2012 declined 30 percent to Rs 397m, due to a substantially lower contribution from plantations as a result of lower rubber prices, a drop in tea and rubber volumes and increased wages.

The plantation sector's contribution to pre-tax profit reduced from Rs 294m in 1Q 2011-12 to Rs 104m in the quarter under review, a decline of 64 per cent.

Dipped Products Managing Director Dr. Mahesha Ranasoma said that Hand Protection contributed Rs 293m to profit before tax, an improvement of 7 percent.

One of the highlights of the quarter reviewed was the commissioning of a bio-mass heater at Hanwella Rubber Products factory to reduce energy costs.

Sales of ICOGUANTI S.p.A, DPL's Italian marketing company rose 13 percent to Rs 1b, while Dipped Products Thailand (DPTL) recorded a turnover of Rs 575m.

The DPL Group comprises manufacturing subsidiaries in Sri Lanka and Thailand, the marketing company in Italy and the plantations companies Kelani Valley Plantations PLC (KVPL) and Hayleys Plantation Services (owners of Talawakelle Tea Estates PLC). The company's products now reach 70 countries.