The chief of food group Indofood Sukses Makmur has warned that the rising cost of wheat could impact its 2007 results despite posting rising first-half profits.

Anthoni Salim, president director and CEO of Indonesia's largest instant noodle maker, said raw material prices, particularly wheat "show no sign of softening".

Salim said: "We will continue to be vigilant in controlling our operating costs, increasing our operating efficiency as well as enhancing our marketing and distribution strategies."

Indofood shrugged off rising commodity costs with a 7% rise in operating profit to IND994bn (US$106m). Net sales leapt 21.3% to IND10.1trillion.

However, pressure from commodity costs did impact margins, which dipped to just over 8%.