Fragrance Group says it posted a 4.9% fall in net profit to $16.8 million for the second quarter ending June 30 2010 (2QFY2010) versus $17.7 million for 2QFY2009. Revenue fell 24.3% to $60.2 million compared to $79.5 million a year ago.

The property sector contributed $49.26 million or 81.8% of the consolidated revenue. This is a decrease of about 30.8% from the $71.20 million contribution in the second quarter of 2009. Major contributor to revenue in the second quarter 2010 is the landed housing project located at Kerong Lane. Other projects that made significant revenue contribution included Eastwood Regency, The Cotz, Prestige Heights, Parc Elegance, Parc Imperial, Prestige Loft, Suites & Icon @ Changi and the landed houses at Sennett Road.

The hotel sector contributed $10.35 million or 17.2% to the total consolidated turnover. This represents an increase of 30.3% from the $7.94 million recorded in the corresponding period of 2009. This was mainly due to the higher occupancy and room rates at our existing hotels and as well the revenue contributed by two new hotels.

Income from Investments amounted to $0.58 million, which is an increase of 58.0% from the $0.37 million recorded in the corresponding period of 2009.

Barring unforeseen circumstances, Fragrance Group expects to achieve higher profits in FY2010 as compared to FY2009.