Dipped Products records turnover of Rs.7.8Bn

Dipped-Products

Aug 05, 2019 (LBO) – The Dipped Products Group posted 7.8 billion rupees turnover and 221 million rupees profit before tax (PBT) for the first quarter ended 30th June 2019.

The hand protection segment posted a growth of 8 percent in turnover amounting to 4.4 billion rupees and contributed 219 million rupees to group PBT.

Revenue and profitability of ICOGUANTI S.p.A, DPL’s Italian marketing company, remained stable for the period despite higher cost of sales due to depreciation of Euro against USD during the quarter.

Performance of Dipped Products (Thailand) Ltd (DPTL), the group’s medical glove manufacturing operation suffered due to price pressure from the regional manufacturers holding on prices on rising latex rates.

Commenting on the performance, DPL Managing Director Ng Soon Huat said “the outlook for 2019/20 remains positive. We hope to drive volume growth in specialized gloves to mitigate the cost impact of increases in latex prices which will lead to narrowing of margins. Also the Group will continue to focus on productivity and TPM/Lean initiatives to eliminate waste”.

The Plantation segment reported 3.4 billion rupees revenue. Plantation segment performance was affected by wage adjustment and low tea / rubber prices prevailed during the period.

Elaborating on the results, the Chairman of Dipped Products Group Mr. Mohan Pandithage said “Overall performance of the Group is satisfactory given the tough market conditions and low commodity prices remained during the period”.

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. The company’s products now reach 70 countries.

The Board of Directors of Dipped Products PLC comprises Messrs. Mohan Pandithage (Chairman), Ng Soon Huat (Managing Director), Dhammika Perera, Sarath Ganegoda, M.Bottino, F.Mohideen, S.Rajapakse, N.A.R. R. S Nanayakkara, S.P.Peiris, K.D.G.Gunaratne, H.S.R.Kariyawasan, R.H.P.Janadheera, Ms.R.N.Obeyesekere and K.M.D.I. Prasad.