SINGAPORE - Fragrance Group reported its net profit rose by 37.6 per cent to $24.3 million.

Turnover for the first quarter ended March 31 was up 12.9 per cent at $125.3 million.

Property sector contributed to this increase while the hotel sector's revenue has dropped. Property development sector contributed $111.5 million in revenue, up 15.6 per cent.

This was mainly due to the revenue contribution from ongoing development projects: Urban Vista, Kensington Square, Parc Rosewood, Suites @ Bukit Timah, LeRegal, Icon @ Pasir Panjang and Novena Regency.

Rental income from investment properties located at Hoe Chiang Road and Alexandra Road have also contributed to the increase in revenue during this period.

Hotel room revenue, however, slipped by 5.2 per cent, owing to the following factors:

* Lower contribution from Fragrance Hotel - Pearl as a result of temporary closure for upgrading works;

* Lower revenue recognised from the remaining hotels; and

* The absence of revenue from Fragrance Hotel - Elegance since the fourth quarter following a cessation of tenancy agreement.

Earnings per share increased to 0.4 cent from 0.3 cent previously while net asset value per share while net asset value per share eased to 17.9 cents compared to 18 cents as at Dec 31.

The directors expect the group to remain profitable for the full year.

Fragrance shares added half a cent to 25 cents on Wednesday.