Dipped Products PLC (DPL) said this week it has posted a turnover of Rs 6.3 billion for the six months ending September 30, 2008, up 17 % growth over the corresponding half of the previous year.
It said turnover from Hand Protection grew 10 % to Rs 4.8 billion, while Plantations reflected a 34 % top line improvement to Rs 1.7 billion before adjusting for inter-segmental sales, in the six months reviewed.
Turnover growth in the DPL Group’s plantations business was attributed to a 45 % improvement in turnover from tea, and a 17 % increase in revenue from rubber. The chief contributors to the higher turnover in the hand protection segment were DPL’s Italian marketing company ICOGUANTI S.p.A and the Group’s local manufacturing companies, the statement said.
“Of concern to the Group in the period under review was an increase of Rs 272 million in expenditure on latex, its main raw material, fuel and gas, electricity, packing materials, chemicals and wages. As a result, Group profit before tax, at Rs 263 million reflected a decline of Rs 90 million or 26 %, while post tax profit was down Rs 96 million to Rs 192 million, a drop of 33 %,” it said.
Commenting on the results, DPL Managing Director J. A. G. Anandarajah said: “High latex and energy prices coupled with a static exchange rate and domestic inflation continue to erode margins at a time when demand is shrinking due to the global recession.”
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