Nov 14, Colombo: Strong gains from performance improvement initiatives in local operations and significant contribution from overseas marketing operations have generated noteworthy profit growth in 1H of 2018/19 for the Dipped Products Group, a global leader in hand protection.
According to figures filed with the Colombo Stock Exchange, the Hayleys Group's globally-ranked subsidiary achieved a profit before tax of Rs 553 million for the 1H of 2018/19, a growth of 141 percent over the previous year.
Profit after tax grew to Rs 413 million, while profit attributable to equity holders of the company improved to Rs 368 million from Rs 12 million in the previous year.
Outstanding contributions to revenue and profit came from the Group's Italian marketing company ICOGUANTI S.p.A. The company increased its sales by 9 percent to Rs. 2.475 billion and grew profits by 65 percent to Rs. 271 million.
DPTL improved its performance and converted a loss of Rs 5 million in 2017 to a profit of Rs 22 million in the period reviewed despite drop in turnover by 3 percent to Rs 1.745 billion.
The Group's plantation sector comprise of Kelani Valley Plantations PLC (KVPL) and Talawakelle Tea Estates PLC recorded Rs. 6,547 million revenue, almost static compared to the previous period mainly due to depressed commodity prices.
Commenting on the overall results, Hayleys Group Chairman Mr. Mohan Pandithage said DPL's performance in a difficult period was particularly pleasing because much of it was achieved by management initiatives. In this backdrop, the Dipped Products Group is focusing on TPM & Lean production systems and is allocating more time and resources to move forward in this area.
Established in 1976, Dipped Products is one of the leading non-medical rubber glove manufacturers in Sri Lanka and in the world, and accounts for a 5 percent share of the global market. The company's products now reach 70 countries.