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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, ICO Guanti Spa, DPL's Italian
marketing and distribution company also turned in a satisfactory
performance, the spokesman said.
The Board of Directors of Dipped Products Limited 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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