The company reported a 26 per cent growth in turnover to Rs 150.36 crore during the year, with exports crossing the Rs 100-crore mark to touch Rs 105 crore, riding on a similar growth rate over last year.

According to a company press release, while pre-tax profit has risen in line with the turnover increase, the net profit has grown at a marginally lower rate due to the incidence of corporate tax in the domestic business following the end of `tax-holiday'.

The board of directors at a meeting here on Monday have recommended a dividend of Rs 40 per share. This is double the payout over last year. The company said that Nepal Lever has become a zero-debt company. Earnings per share have increased to Rs 128 per share and reserves have doubled, while maintaining RONW at a healthy 47 per cent.

Nepal Lever accounts for nearly 10 per cent of Nepal's manufactured exports to India and the exports performance has been maintained despite difficult trading conditions in the international market and intense low cost competition from South East Asian countries, the release stated.

``After a sluggish start in the first half, (due to a stagnant economy and trade disruption) the domestic business recorded a superlative performance in the second-half of the year with an underlying volume growth in excess of 40 per cent over the corresponding period last year,'' the company said.

Commenting on the results, Nepal Lever chairman KB Dadiseth said: ``Like the rest of South Asia, Nepal is poised for rapid economic growth in the next millennium. Nepal has huge untapped human and natural resources, which if properly exploited, will make Nepal develop into a strong economic entity. Nepal Lever would like to participate in this growth opportunity by introducing consumer relevant innovations in products, technology and distribution systems.''

Dadiseth said that, both Unilever and HLL have proven expertise in setting up distribution systems in developing countries. ``Nepal Lever will like to bring this expertise to Nepal by setting up a robust and cost effective distribution structure,'' he added.

The introduction of OK laundry soap in the value conscious segment of the market was a key addition to the portfolio in the country, and the brand is said to have managed to capture a ``significant'' share of the market in less than a year of its launch.