ECONOMYNEXT – Sri Lanka’s Dipped Products said September 2016 group net profit rose 21% to Rs27 million from a year ago with the gains coming from gloves exports as plantations continued to lose money.
Sales of the group, which makes industrial, general purpose and medical rubber gloves, and manages tea and rubber plantations, sales rose 15% to Rs6.1 billion in the quarter from last year, according to interim accounts filed with the stock exchange.
Other income almost halved to Rs21 million and finance income fell 77% to Rs12 million in the September quarter, the accounts showed.
Dipped Products, a Hayeys group unit, reported earnings per share of 46 cents for the quarter against 38 cents a year ago.
For the six months ending 30 September 2016 the group suffered a loss per share of 30 cents compared with Rs2.57 earnings the year before.
The accounts showed profits from gloves manufacturing and exports improved while plantations losses rose sharply.
Group sales for the first half of the financial year rose 5% to Rs11.5 billion from the same period of the previous year.
“The Hand Protection sector reported a profit before tax of Rs398 million compared to Rs344 million in the previous period,” a company statement said.
“However, the Plantation sector recorded a loss of nearly Rs400 million due to lower crop, mainly arising from adverse weather conditions and the ban on weedicides, which was further impacted by lower prices during the period.”
(COLOMBO, Nov 01, 2016)