Lower prices for tea and rubber impact revenue
Dipped Products PLC (DPL) posted Rs. 22Bn in Group Turnover during the financial year 2015-16, a 21 percent reduction from a year ago. Group Profit Before Tax (PBT) for the period was Rs. 648 million, a 64 percent reduction from the Rs. 1,780 million recorded for the last year.
The Hand Protection segment contributed Rs. 12.7Bn to revenue, 15 percent lower than the previous year. Contribution to PBT from the segment was at Rs. 549 million, 63 percent lower from a year ago. The Plantation segment reported Rs. 9.5Bn in revenue, a 29 percent reduction from the previous year and a PBT of Rs. 154 million, compared to Rs. 390 million posted for the last year.
Dr. M Ranasoma commenting on the results said “it has been a very challenging year for DPL due to multiple factors including heightened competition from regional players and some of DPL’s key markets continuing to be sluggish”. He further stated that DPL’s manufacturing platform with its new factories in Biyagama Export Processing Zone are expected to contribute positively to Group performance in 2016/17 financial year.
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. Mohan Pandithage (Chairman), Dr. K. I. M. Ranasoma (Managing Director), D.K.Welmillage, F. Mohideen, S. C. Ganegoda, Dhammika Perera, M. Bottino, S. Rajapakse, N. A. R. R. S Nanayakkara, S. P. Peiris, K.D.G.Gunaratne, H.S.R. Kariyawasan and S.M.Shaikh.