15-May-2013 Interim financial statements & Press Release 31-03-2013 - DIPD

DIPD Financial Statements & Press Release for the period ended 31-03-2013 have been uploaded on the CSE website.
http://www.cse.lk/cmt/upload_report_file/670_1368615065525.pdf

http://www.cse.lk/cmt/upload_report_file/670_1368615664.pdf

Dipped Products PLC, the Hayleys Group subsidiary that accounts for 5 percent of the global non-medical rubber glove market, saw profits fall 17 percent to Rs. 1.78 billion for the year ended March 31, 2012 from Rs. 2.14 billion a year earlier.

In a filing to the Colombo Stock Exchange, Dipped Products reported a growth in turnover of 20% equating to Rs. 23.7 billion and a profit before tax of Rs. 2.2 billion for the 12 months ending 31st March 2013, down 11 percent from a year ago.

Group's Hand Protection sector crossed the Rs. 1 billion PBT threshold for the second consecutive year, whilst the Plantation sector contributed Rs. 963 million to the Group PBT.

The Hand Protection sector increased turnover by 9% to Rs. 14.7 billion with revenue from glove manufacturing operations improving 10% to Rs. 11.2 Bn. Turnover from Sri Lankan glove manufacturing operations improved by 9% to Rs. 8.6 billion, while Dipped Products (Thailand) Ltd, the medical glove manufacturing operation, increased turnover by 11% to Rs. 2.5 Bn. Contribution from ICOGUANTI S.p.A, the Company's Italian marketing operation rose by 4% to Rs. 4.1 Bn. The Plantation sector recorded a turnover of Rs. 9.8 billion, an approximate 40% YOY growth.

At company level, net profits fell 29 percent to Rs. 753.8 million.

Overall market conditions in Europe remained challenging during the year. With Europe accounting for nearly 40% of the Group's business these conditions were successfully countered by the Company's concentrated investments into marketing and efforts to gain deeper insights on changing customer needs.

Speaking on the performance of DPL, Chairman, Mohan Pandithage cited the Company's pre-emptive marketing strategies as core to its ability to overcome the otherwise tough challenges in global markets. "DPL's engagement process with existing and new customers enabled the Company to offer solutions that better matched their market requirements", noted Mr. Pandithage. The intensive marketing efforts during the year also enabled DPL to penetrate into new markets such as Eastern Europe including Russia.

Managing Director, Dr. Mahesha Ranasoma cited that in addition to marketing efforts internal cost management through Lean Manufacturing was key to the year-end performance whilst declining natural rubber prices through the year enabled a favourable price regime.

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 68 countries.

The Board of Directors of Dipped Products PLC comprises Messrs A. M. Pandithage (Chairman), Dr. M. Ranasoma (Managing Director), N. Y. Fernando, R. Seevaratnam, F. Mohideen , K. A. L. S. Fernando, L. G. S. Gunawardena, S. C. Ganegoda , K. D. D. Perera, M. Bottino, R M T Premarathna and V R Gunasekara.
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