Continuing strong performances by businesses in the hand protection segment in the third quarter enabled Dipped Products PLC (DPL), the Hayleys Group’s globally positioned rubber gloves business, to improve overall results for the nine months ending December 31, and lessen the impact of losses from its Plantations segment. In a press release on the interim financial results this week, DPL which comprises manufacturing operations in Sri Lanka and Thailand, a marketing company in Italy and a plantation company, reported a turnover of Rs.8.3 billion and pre-tax profit of Rs.398 million, despite the plantation company showing a loss of Rs.215 million for the period reviewed.
The company said the hand protection segment more than doubled its operating profit to Rs.646.2 million at the end of the third quarter of the current year from Rs.297.9 million in the first nine months of last year although turnover from the sector declined due to lower prices. A noteworthy contribution to performance came from Dipped Products (Thailand) Limited (DPTL), the Group’s medical glove manufacturing business which posted a pre-tax profit of Rs.82 million and increased turnover by 20% to Rs1.1 billion.
Commenting on these results, DPL Managing Director J.A.G. Anandarajah stated in the press release that the Group has performed better than expected at the beginning of the year by recouping volumes, substantially reducing borrowings and maintaining margins. Consequently, overall results are much better than they were at the end of the second quarter, he said.
In the plantation sector, Kelani Valley Plantations PLC performed better in its final quarter of the year. Improved commodity prices helped to reduce the losses incurred earlier in the year as a result of a 42% increase in wages and crop losses due to bad weather, Mr. Anandarajah said. |
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