Fragrance Group has posted a 3.7 per cent drop in third quarter net income to $22.8 million.

This was despite revenue for the three months ended Sept 30 rising 6.5 per cent to $129.2 million.

The property segment contributed $113.5 million or 87.8 per cent of group revenue.

This is an increase of about 6.6 per cent.

The projects that made significant revenue contribution included Parc Rosewood, Novena Regency, Wak Hassan, Suites @ Bukit Timah, Le Regal and Urban Vista.

Rental income from the investment properties has also contributed to the increase in revenue.

The hotel sector contributed $15.7 million or 12.2 per cent to group turnover, up 5.7 per cent.

This was mainly due to contribution from Fragrance Hotel-Ruby post asset enhancement works.

Gross profit margin achieved by the property business rose to 38.4 per cent from 34.9 per cent. Margin from the hotel business remained at 86.6 per cent.

Earnings per share dipped to 0.3 cent from 0.4 cent previously while net asset value per share swelled to 14 cents compared to 13.1 cents as at Dec 31.

Barring unforeseen circumstances, Fragrance expects to remain profitable in 2013.