Dipped Products sustains performance in 1H, 2007-08

A strong showing by the Sri Lankan manufacturing operations of Dipped Products PLC (DPL) in the first half of 2007-08 has helped Sri Lanka's global player in hand protection business to sustain a performance comparable with the first half of the previous year.

The Hayleys Group company which also has a substantial interest in plantations has reported profit before tax of Rs. 352.8 million for the six months ending September 30, 2007, on par with that of the corresponding six months (Rs 393.5 million) after discounting an extraordinary income of Rs 37 million accounted in that period as surplus from the acquisition of Hanwella Rubber Products Ltd. (HRPL).

Group turnover for the period reviewed grew 16 percent to Rs. 5.4 billion, bolstered by a 19 percent growth in revenue and a 14 percent increase in export volume from local hand protection manufacturing operations.

Profit from hand protection grew 10 percent.

Commenting on these figures, which were released to the Colombo Stock Exchange this week, DPL Managing Director J. A. G. Anandarajah said: "DPL's ability to match the performance of the first half of the last financial year demonstrates the resilience of its local manufacturing businesses vis-a-vis its bottom line."

DPL's plantation company Kelani Valley Plantations PLC (KVPL) which increased turnover by 3 percent to Rs. 1,246 million in its corresponding half year performance ending June 30, 2007, recorded a pre-tax profit drop of 32 percent (Rs. 67 million) to Rs. 143 million, while net profit declined by 26 per cent.