Aug 01, Colombo: Sri Lanka's troubled non-medical glove maker, the Hayleys Group subsidiary, Dipped Products posted steady financial performance in the first quarter of 2014.
In a filing to the Colombo Stock Exchange, Dipped Products reported a turnover of Rs. 8.741 billion and a Profit Before Tax (PBT) of Rs. 441 million for the quarter ending June 30. The Profit After Tax (PAT) for the period was Rs. 305 million.
The company's plantations sector financial year changed to 31st March form 31st December effective from current financial year and hence six months results of the plantation sector is consolidated with group performance of firs quarter.
Hand Protection sector recorded a turnover of Rs. 3.445 billion, compared to Rs. 3.727 billion in 1Q of 2013-2014 while the contribution from the sector to Group PBT amounted to Rs. 315 million compared to Rs. 345 million in the previous financial year.
The company's Italian marketing company ICOGUANTI S.p.A. demonstrated growth in both turnover and profits, while Dipped Products (Thailand) continue to sustain its contribution to Group performance, the company said.
During the quarter DPL Premier Gloves Ltd. which was incorporated in January 2014 commence commercial operations, the company said.
The plantation sector turnover recorded Rs 5.523 billion, whilst PBT declined to Rs. 126 million reflective of the cumulative effects of wages hikes and contraction in global rubber prices.
The Plantation's high turnover is attributable mainly to a change in the financial reporting period, with the consolidation of an additional three months.
Managing Director of Dipped Products Dr. K.I.M. Ranasoma speaking on the outlook for the rest of the financial year commented that reducing the lead time on customer order is the company's key priority right now.
He further noted that operations of DPL Premier Gloves are expected to reach its full capacity towards the second half of the financial year.
Established in 1976, Dipped Products is one of the leading non-medical rubber glove manufacturers in the world, and accounts for a 5 percent share of the global market with the company's products reaching 68 countries.
The company faced numerous challenges that began with the forced closure of its factory in Rathupaswala by protests in July 2013. 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.