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Dipped Products post strong growth in first 9 months of FY 06/07
-09-02-2007-
Profit after
tax up 125%; Earnings per Share grows 2.4 times
The Dipped Products Group (DPL) has sustained strong profit and turnover
growth in the nine months ending December 31, 2006.
The Hayleys
Group's multinational hand protection company which also has a
significant interest in plantations, has reported that profit after tax
has more than doubled at the end of the third quarter of 2006-07,
growing 125 per cent over the corresponding nine months of the previous
year to Rs 528 million. Turnover for the period was up 40 per cent to Rs
7,163 million.
DPL's
nine-month profit before tax at Rs 589 million reflected a growth of
nearly 100 per cent.
"These figures represent a solid performance from all manufacturing
facilities in Sri Lanka, and help mitigate to some extent, the losses in
Thailand," a spokesman for Dipped Products said. "Although our facility
in Thailand contributed substantially to turnover, higher latex prices
and the strength of the Thai Baht against the US Dollar continued to
erode margins."
However, the
wider acceptance of the medical gloves manufactured by Dipped Products
(Thailand) Ltd which was reflected in stronger sales over the previous
year and led to higher utilisation of plant capacity in the period
reviewed, augurs well for the future prospects of this venture, the
spokesman said.
Of the
Group's two areas of business, hand protection posted a 44 per cent
growth in turnover to Rs 5,662 million, while Kelani Valley Plantations
Ltd., (KVPL) increased its turnover by 28 per cent to Rs 1,805 million,
through increases of 60 per cent from rubber and 13 per cent from tea.
KVPL's profit before tax grew by 127 per cent to Rs 263 million largely
on the back of strong rubber prices.
The DPL
Group's results released to the Colombo Stock Exchange this week reveal
that its strong performance in the first nine months of the current year
is mirrored in substantial Earnings per Share growth from Rs 3.09 at end
2005 to Rs 7.31 as at December 31, 2006, a growth of 2.4 times or 137
per cent.
Elaborating
on the performance of the Group's local rubber glove manufacturing
operations, the spokesman said: "Manufacturing in Sri Lanka continued to
show remarkable improvements, with profits in the third quarter also
being more than double that of th corresponding quarter of last year, on
account of export volume growth and better margins."
He said DPL's new plant commissioned at Venigros in the second quarter
of last year had contributed significantly to turnover growth having
been in operation over the entire nine month period of the current year.
Meanwhile Texnil, which manufactures coated seamless knitted gloves also
made a notable contribution, ending the losses incurred in its first two
years of operation. Similarly, DPL's June 2006 acquisition Hanwella
Rubber Products Ltd., (HRPL) made a positive contribution in the third
quarter of 2006-07 following the conversion of one of its two production
lines to manufacture unsupported flock-free gloves.
On the
international front, ICOguanti Spa, DPL's Italian marketing and
distribution company also turned in a satisfactory performance, the
spokesman said.
The Board of
Directors of Dipped Products PLC comprises Messrs N. G.
Wickremeratne (Chairman), J. A. G. Anandarajah (Managing Director), H.
A. Pieris, R. W. Soysa, , Dr. W. S. E. Fernando, G. K. Seneviratne, N.
Y. Fernando, N. B. Weerasekera, R. K. Witanachchi, A. M. Pandithage
(Alternate: R. A. Ebell) and R. Seevaratnam.
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