Friday 10 August 2018

Sri Lanka's Dipped Products back in profit in June quarter

ECONOMYNEXT - Sri Lanka's Dipped Products group, which has interests in glove making and rubber and tea plantations, said it returned to profit in the June 2018 quarter with earnings of 215 million rupees compared with a loss of almost 30 million rupees a year ago.

The Hayleys group firm, which has factories in Sri Lanka and Thailand, reported earnings of 3.59 rupees a share. The stock was last traded at 80 rupees.

Sales rose two percent to 7.6 billion rupees in the quarter, with cost of sales down one percent to 6.4 billion rupees and gross profit up rose 26 percent to 1.2 billion rupees.

A statement said Dipped Products (DPL) group profit before tax for the June quarter improved to 326 million rupees from 93 million in the same period the previous year.

“Overall performance improved during the period due to the prevalence of stable rubber prices and market conditions, which consequently enabled DPL to consolidate sales in a sustainable manner,” Dipped Products chairman Mohan Pandithage said.

“Several manufacturing excellence programs including Total Productive Maintenance (TPM) initiated by the company has also contributed to improve the performance.

“Consequently, the contribution to PBT from the Hand Protection segment improved to Rs. 247 million compared to Rs.24 million of the period in the previous financial year.”

Sales of Dipped Products Thailand remained stable for the quarter, while ICOGUANTI S.p.A, DPL’s Italian marketing company, recorded a revenue growth of 12%, the statement said.

The contribution from plantations enabled DPL to further strengthen its overall performance for the quarter.

Pandithage said that the plantation business contributed 79 million rupees to the group PBT, up from 69 million in the same period in the last financial year.

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