Swiss perfume manufacturer Givaudan has reported a 6.6 per cent drop in 2002 net profit to SFr256 million ($192 million).

The company blamed the worse than expected result on impairment charges on its investment portfolio.

But Givaudan results issued on Wednesday showed an 11 per cent increase in turnover to SFr2.67 billion. Sales in 2002 were boosted by the company's acquisition of Nestlé's Food Ingredients Specialties business (FIS).

The Geneva-based company said profits had been hit by a SFr31 million charge for writing down financial assets, and a restructuring charge of SFr31 million related to the takeover of FIS.

Givaudan, the world's second-largest maker of scents and flavours, said it expected "a good overall result" in 2003, barring extraordinary events.

It proposed raising its share dividend from SFr7 to SFr8.10.

The company, whose shares have shed around 12 per cent this year, said it would in future concentrate on its core activities - the creation of scents and tastes.

swissinfo with agencies

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