ECONOMYNEXT – Sri Lankan rubber gloves maker Dipped Products’ net profit rose 51 percent to 231 million rupees in the September 2019 quarter from a year ago, helped by a tax reversal, according to interim accounts filed with the stock exchange.
Pre-tax profits at the Hayleys group unit were stagnant at 229 million rupees, with the accounts showing a tax reversal gain of 1.3 million rupees compared with tax expenses of 63 million rupees the previous year.
Group sales in the September 2019 quarter grew three percent to 7.5 billion rupees.
Earnings per share for the September quarter were 3.86 rupees. The share last traded unchanged at 82 rupees.
In the six months to September 2019, EPS was 5.55 rupees with net profit down 10 percent to 333 million rupees and sales up three percent to 15.3 billion rupees.
Dipped Products said in a statement its gloves or hand protection business contributed 8.6 billion rupees to the group’s top line in the first half.
“The Dipped Products recorded a profit before tax of 450 million rupees for the period ending 30th September 2019 after absorbing a 94 million rupee loss from the plantations sector,” it said.
“The overall performance of the group is satisfactory. The Hand Protection sector results were achieved in spite of stiff competition from regional manufacturers,” said Dipped Products chairman Mohan Pandithage.
“Despite the competition our focus on product innovation and quality allowed us to sustain and even grow in some markets.”
The plantations sector was impacted by lower commodity prices during the period and higher cost of production arising from a wage hike.
(COLOMBO, 05 November 2019)