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Dipped Products doubles 1st half profit with strong export growth
-03-11-2006-
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
30th September 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 this week
indicate that Earnings per Share grew by nearly 2.3 times to Rs. 4.69 as
at 30th September.
In segmental performance, DPL's hand protection businesses reported
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.
Whilst describing these results as being 'quite satisfactory' a
spokesman for the company disclosed that Dipped Products Thailand Ltd.,
(DPTL) had contributed Rs. 450 million to the revenue increase of the
Group in the half year.
The operations yet continued to incur losses on account of exceptionally
high latex prices and the strength of the Thai Baht against the US
Dollar. Texnil, DPL's fabric-supported glove manufacturing company which
had recorded losses in its first two years of operation is now
generating a noteworthy contribution to profit, providing a pointer to
the period of gestation required for such companies, he said.
"Dipped Products Thailand is already contributing substantially to DPL's
revenue, and will contribute to profitability in due course. In any
case, the losses in Thailand were offset by the strong performance of
ICO Guanti Spa, DPL's marketing company in Italy," the spokesman added,
pointing out that when DPTL breaks even and starts generating profits it
would have a significant impact on the bottom line in the future.
The Board of Directors of Dipped Products Limited comprises Messrs R.
Yatawara (Chairman), N. G. Wickremeratne (Managing Director), H. A.
Peiris, R. W. Soysa, J. A. G. Anandarajah, Dr. W. S. E. Fernando, G. K.
Seneviratne, A. D. B. Talwatte, N. Y. Fernando, N. B. Weerasekera and R.
K. Witanachchi.
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