Dipped Products posts healthy growth in 2018-19

Strong gains from performance enhancing initiatives in local operations in the face of stiff market conditions and robust contributions from overseas marketing operations have generated noteworthy profit growth in 2018-19 for the Dipped Products group, a global leader in hand protection.

The group achieved a profit before tax of Rs.1,643 million for the year ending March 31, 2019, a growth of 32 percent over the previous year. 

Profit after tax grew 53 percent to Rs.1,224 million, while profit attributable to equity holders of the company improved by 75 percent to Rs.868 million. The 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 top line 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., the 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.

The 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.
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 Chairman Mohan Pandithage, Managing Director Ng Soon Huat, 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, R.N. Obeyesekere and K.M.D.I. Prasad.