May 09, Colombo: Sri Lanka's glove maker, the Hayleys Group subsidiary, Dipped Products recorded a consolidated turnover of Rs. 23 billion for the financial year ending 31 March 2014.
However, the company said in a release announcing the interim financial results that despite numerous challenges that began with the forced closure of the factory in Rathupaswala by protests in July 2013, the company sustained its revenue base with a marginal 2.4% decline in turnover.
In a filing to the Colombo Stock Exchange the DPL said in the year to March glove manufacturing sector reported a 9% reduction in turnover to Rs. 13.4 billion rupees from Rs. 14.7 billion in the previous financial year. Contribution to pretax profits fell 32% to Rs, 910 million rupees from Rs. 1.3 billion.
The company attributed the reduction directly to the losses in production at Rathupaswala manufacturing facility.
The planting sector of the company posted a 6% increase in turnover to Rs. 10.4 billion from Rs. 9.8 billion in 2012/13. However, the pretax profits from the sector recorded a 20% reduction from Rs. 928 million in 2012/13 financial year to Rs. 747 million in the 2013/14 period due largely to adverse weather and wage increase.
DPL Chairman Mohan Pandithage credited the Group for "withstanding a challenging operating environment" in 2013/14.
Due to the forced closure of the Rathupaswala facility, the Company incorporated a fully owned subsidiary, DPL Premier Gloves Ltd., a new manufacturing facility at the Biyagama Export Processing Zone to manufacture and export rubber gloves, the Chairman said.
Dipped Products, established in 1976, is one of the leading non-medical rubber glove manufacturers in the world, and accounts for a 5 percent share of the global market and its products reach 68 countries.