Net sales rose 13.7 per cent to Rs 440.68 crore during the year from Rs 387.58 crore last year. The board of directors has recommended a dividend of Rs 7.5 per share (75 per cent) on an enhanced capital of Rs 21.64 crore. The audited financial results show an export growth of 43 per cent over the previous year to Rs 21.5 crore. Other income was lower at Rs 7.8 crore, compared to Rs 9.49 crore last year.

Operating profit increased 17.04 per cent to Rs 74.84 crore from Rs 63.94 crore last year. Operating profit margins were almost at the same level at 16.98 per cent. Net profit margins, however, increased to 9.79 per cent from 8.46 per cent.

Interest charges at Rs 6.47 crore were lower, compared to Rs 7.94 crore in the previous year. Depreciation, too, was lower at Rs 22.75 crore, against Rs 25.65 crore lastyear. Provision for taxation increased to Rs 10.24 crore from Rs 7.04 crore. Earnings per share stood at Rs 19.96 per share.

On the performance, chairman and managing director Bharat V Patel said: "The core business categories of healthcare and feminine hygiene grew by 16 per cent and 6 per cent in sales respectively."

He, however, added a word of caution with respect to the economic slowdown by saying, "While the company has consistently delivered strong sales and profit growth in preceding years, an economic slowdown is being witnessed in 1998. Lower consumer spending and competitive response is likely to put pressure on margins and profitability of the company."

P&G manufactures and markets leading brands including the Vicks range of cough and cold medicines and Whisper feminine hygiene products. Reserves grew by 12.9 per cent to Rs 157.72 crore, against Rs 139.6 crore last year.

Procter & Gamble (P&G) is streamlining its structure by offering a voluntary retirement scheme (VRS) to some of itsemployees. The scheme opened on August 20. The move is aimed at meeting certain challenges and to leverage on opportunities to accelerate growth, the company said. It said the affected employees would continue to hold till maturity of the Stock Appreciation Rights for 100 shares that P & G, USA, granted to its employees worldwide.