Increased export volumes and higher prices have helped Dipped Products (DPL), the Hayleys Group's multinational hand protection business to more than double profit after tax in the first half of 2005-06, despite the adverse effect of exceptionally high latex prices on the performance of its new medical glove manufacturing plant in Thailand.

The Group comprising local and international hand protection manufacturing and marketing operations and plantation companies, has reported profit after tax of Rs 345 million for the six months ending 30th September 2006, a growth of 117 per cent over the corresponding period of last year.

Profit before tax at Rs 393.5 million, reflected a growth of 92 per cent in the period reviewed, on a turnover of Rs 4,665.4 million, which was up 39 per cent. DPL's income statements released to the Colombo Stock Exchange this week indicate that Earnings per Share grew by nearly 2.3 times to Rs 4.69 as at 30th September.

In segmental performance, DPL's hand protection businesses reported turnover of Rs 3,668.8 million, following a healthy growth of 44.5 per cent over the first half of last year. Plantations generated a turnover of Rs 1,212 million, reflecting a growth of 25.5 per cent. Profitability in the plantation sector was particularly noteworthy, with pre tax profit of Rs 207.9 million, a growth of 103.6 per cent. Kelani Valley Plantations Ltd., (KVPL) had increased its revenue from rubber by 69 per cent and from tea by 10 per cent in the six months reviewed, to post a pre tax profit of Rs 194 million.

Whilst describing these results as being 'quite satisfactory' a spokesman for the company disclosed that Dipped Products Thailand Ltd., (DPTL) had contributed Rs 450 million to the revenue increase of the Group in the half year. The operations yet continued to incur losses on account of exceptionally high latex prices and the strength of the Thai Baht against the US Dollar. Texnil, DPL's fabric-supported glove manufacturing company which had recorded losses in its first two years of operation is now generating a noteworthy contribution to profit, providing a pointer to the period of gestation required for such companies, he said.