Int’l operations boost Dipped Products 2Q

Dipped Products PLC, the non-medical glove maker of Hayleys group, saw its performance improving significantly during the September quarter (2Q19) with positive contributions from the firm’s local and international operations.

The earnings for the quarter under review rose to Rs.2.55 per share or Rs.152.6 million compared to earnings of 69 cents per share or Rs.41.2 million reported for the corresponding quarter last year.

Although the revenue for the quarter rose only 2 percent year-on-year (YoY) to Rs.7.2 billion, the firm was able to contain costs with cost of sales increasing only by 1 percent YoY to Rs.6.1 billion.

For the six months ended September 30, 2018, Dipped products reported earnings of Rs.6.14 per share or Rs.367.7 million compared to 20 cents or Rs.11.6 million reported for the same period, last year.

The revenue rose 2 percent YoY to Rs.14.8 million. “Outstanding contributions to revenue and profit came from the Group’s Italian marketing company ICOGUANTI S.p.A. The company increased its sales by 9 percent to Rs. 2,475 million and grew profits by 65 percent to Rs. 271 million,” Dipped Products said in an earnings release.

It also said the Dipped Products (Thailand) Limited also converted a loss Rs.5 million in 2017 to a profit of Rs 22.million in the first half of 2018 despite the drop in turnover by 3 percent to Rs 1,745 million.

A segmental analysis of the group’s business performance for the first half showed that the glove manufacturing business recording an operating profit of Rs.521.8 million on a revenue of Rs.8.4 billion.

This was against an operating profit of Rs.98.1 million reported for the first half of 2017 on revenue of Rs. 8 billion.

The group’s plantation segment operating profit however fell to Rs.160.3 million from Rs.351.5 million largely due to depressed commodity prices. The sector revenue remained flat at Rs.6.5 billion.The group’s plantation sector comprises of Kelani Valley Plantations PLC (KVPL) and Talawakelle Tea Estates PLC. 

Hayleys Global Beverages (Pvt) Ltd and KVPL recently entered into a joint venture partnership with Germany’s botanicals giant Martin Bauer Group (MBG).
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.

Hayleys group has 57 percent stake in Dipped Products while Employees’ Provident Fund has 12.76 percent stake being the company’s second largest shareholder.