Swiss fragrances and flavours group Givaudan this morning posted a 6.6 per cent slump in net profit for 2002, largely because of integration costs and the poor performance of financial assets.
Net profit for 2002 came to Sfr256 million (Swiss francs) (€176.5 million), while sales increased by 11.4 per cent to Sfr2.674 billion, the company said.
The company said it expected a "good overall result" in 2003 barring extraordinary events.
The flavour division saw strong results with a pro forma growth of 6.7 per cent in local currencies, despite the integration of FIS, Nestle's flavour business, which was completed by end of 2002.
Double-digit growth by the fragrance consumer products business unit was the key driver to a 5.2 per cent local currency sales growth of the fragrance division.
Fine fragrances and fragrance ingredients continued to be affected by the current market conditions, the statement said.
Givaudan began a share buy-back programme in October 2002 which will increase earnings per share by more than eight percent once completed, it said.
The board of directors will propose a dividend increase from 7 to 8.10 Swiss francs per share.