May 17, 2019 (LBO) - Sri Lanka's Dipped Products Group pre-tax profit was up 32 percent to 1,643 million rupees in 2018/9, the company said.
The Group achieved a profit before tax of 1,643 million rupees for the year ending 31st March 2019, a growth of 32 percent over the previous year. Profit after tax grew 53 percent to 1,224 million rupees, while profit attributable to equity holders of the company improved by 75 percent to 868 million rupees.
Turnover for the year improved by 6 percent to Rs 30.1 billion.
Commenting on the overall results, Hayleys Group Chairman Mohan Pandithage said “DPL’s performance in a year of numerous challenges was particularly pleasing because much of it was achieved by management initiatives such as Total Productive Maintenance (TPM) initiated during the year to enhance productivity and improve process capabilities. The Sri Lankan manufacturing facilities were able to reduce manufacturing lead times and restore customer confidence to improve export volumes during the year.”
The Group’s Hand Protection Sector posted a revenue growth of 8 percent contributing Rs 17.1 billion to the topline, and a pre-tax profit of Rs 712 million. Outstanding contributions to revenue and profit came from the Sri Lankan manufacturing operations and ICOGUANTI S.p.A., Group’s Italian marketing company. Sri Lankan Manufacturing operations registered a 11 percent increase in revenue on an 8 percent growth in export volume.
Elaborating on the results, DPL Managing Director Ng Soon Huat said “the Sri Lankan manufacturing operations recorded the highest level in production consecutively for the second year supporting the sales volume growth of 8 percent. The introduction of new products, enhancement of operational efficiencies and the addition of new customers helped to achieve the better results”.
In this backdrop, the Dipped Products Group is focusing on lean production systems and is allocating more time and resources to move forward in this area, Ng said.
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.
ICOGUANTI S.p.A. increased sales over 9 percent and profits grew by 25 percent, benefitting from favourable Euro – US Dollar parity.
The Dipped Products Group’s Plantation Sector companies increased their turnover by 4 percent to Rs
13.2 billion and contributed Rs 930 million to Dipped Products Group PBT.