Dipped Products on a tear as pandemic boosts demand for rubber gloves

Dipped Products PLC has seen higher sales for its rubber gloves, due to COVID-19-related healthcare requirements. 

The company, which has glove making facilities in both Sri Lanka and Thailand, along with its tea and rubber plantations, reported revenues of Rs.12.3 billion for the three months to December 31, 2020 (3Q21), up 55 percent from the same period in 2019. 

“Despite the challenging environment, the hand protection sector continued to place strategic emphasis on pursuing customers in emerging and developed markets. Sri Lankan manufacturing companies recorded 6 percent growth in export volumes,” Dipped Products Managing Director Ng Soon Huat said. 

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 70 countries.

The company produces and exports rubber gloves for industrial and household needs at its plants in Sri Lanka, while its Thailand factory manufactures gloves for medical examination and non-medical disposable purposes. 
Dipped Products (Thailand) Limited (DPTL) results were affected by narrowing profit margins, due to intense regional competition, however uptick in demand since the latter part of the third quarter increased the sales volumes of DPTL, the company said. 

Dipped Products has tea and rubber plantations via its subsidiaries Kelani Valley Plantations PLC and Talawakelle Tea Estates PLC, which are among the leading plantation companies in the country. 

The company reported earnings of Rs.26.50 a share or Rs.1.59 billion for the quarter under review, compared to Rs.5.15 a share or Rs.308.5 million in the same period in 2019. 

Dipped Products Limited, including other Hayleys PLC subsidiaries, in January announced a share subdivision of one share into 10 shares on February 10. 

During the nine months to December 2020, hand protection revenues soared to Rs.21.2 billion, from Rs.13.4 billion in the same period in 2019, while the plantation sector income rose to Rs.11.6 billion, from Rs.9.9 billion. 

As at December 31, 2020, businessman Dhammika Perera-controlled Hayleys PLC, together with other group entities held a 57.06 percent stake in Dipped Products while the Employees’ Provident Fund had 9.83 percent in the company, being its second largest shareholder.