Dipped Products PLC (DPL), the Hayleys Group’s multinational rubber glove manufacturing business which also owns and manages Kelani Valley Plantations PLC has reported a turnover of Rs 9.2 billion for the nine months ending December 31, 2008, achieving a 15 per cent growth over the corresponding period of the previous year.

According to figures released to the Colombo Stock Exchange this week, turnover from Hand Protection grew 12 per cent to Rs 7.2 billion despite an export volume drop of 7 per cent from Sri Lankan manufacturing operations, while turnover from Plantations grew 34 per cent to Rs 2.5 billion before adjusting for inter-segmental sales.

Dipped Products Thailand, the Group’s medical glove manufacturing business performed substantially better and avoided losses in its final quarter ending December 2008 with encouraging improvements in production, sales volume and earnings.

The increase in Hand Protection turnover came mainly from DPL’s Italian marketing company, ICOGUANTI S.p.A and higher revenue obtained by exports from Sri Lanka due to better prices in the period under review, the Company said.

Turnover growth in the Group’s plantations business came from a 37 per cent improvement from tea due to higher production and better prices and a 27 per cent increase in revenue from rubber.

However, high latex prices and escalation in the cost of energy during the 1st half of the year eroded margins in local Hand Protection manufacturing in the period reviewed, resulting in lower pre and post tax profits at Group level. Group profit before tax, at Rs 402 million reflected a decline of 7 per cent, while post tax profit dropped 11 per cent to Rs 304 million.

Commenting on these results, DPL Managing Director J. A. G. Anandarajah said the Group had arrested the rate of decline in profit recorded for the first half of the year through increased prices. He added that local manufacturing improved its performance in the 3rd quarter following reductions in rubber and fuel prices. However, the continuing strength of the Rupee and indications of softer demand in global markets could keep the Group’s local manufacturing businesses under pressure in the final quarter, he said.

Established in 1976, Dipped Products is one of the leading non-medical rubber glove manufacturers in the world, and accounts for a 5 per cent share of the global market. The company’s products now reach 68 countries.

The Board of Directors of Dipped Products PLC comprises Messrs N. G. Wickremeratne (Chairman), J. A. G. Anandarajah (Managing Director), R. W. Soysa, , Dr. W. S. E. Fernando,  G. K. Seneviratne, N. Y. Fernando, N. B. Weerasekera,  R. K. Witanachchi, A.  M.  Pandithage (Alternate: R. A. Ebell), R.  Seevaratnam and F. Mohideen.