Dipped Products PLC (DPL), the Hayleys Group’s globally-significant rubber glove business, has reported turnover of Rs. 5.3 billion and pre-tax profit of Rs 166 million for the six months ending 30th September 2009 but its plantation unit reported a loss of Rs. 183 million as opposed to a profit of Rs. 233 million in the first six months of last year.
The principal cause for the plantation sector loss was the impact of the higher wage bill of Kelani Valley Plantations PLC (KVPL) which amounted to Rs. 211 million for the six months, on account of back wages and gratuity provision, the DPL said in a statement.
DPL reported that operating profit from its businesses in hand protection grew more than two and a half times to Rs. 393 million in the period reviewed. In the manufacturing sector, Dipped Products (Thailand) Ltd (DPTL) the Group’s medical glove manufacturing business, improved turnover by 19 percent to Rs. 731 million through a higher utilization of capacity, and achieved a profit before tax of Rs 70 million, it said.
DPL Managing Director J. A. G. Anandarajah said: “Although the Group’s bottom line was affected by the substantial losses incurred by the plantation sector as a result of the steep wage hike and weather-related crop losses, the strong showing of hand protection in both Sri Lanka and Thailand is encouraging.”
As a consequence of the losses of the plantation sector, the DPL Group’s pre-tax profit declined 37 %, while post-tax profit reduced to Rs. 93 million, a drop of 51 %. |
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