Indonesian food group PT Indofood Sukses Makmur has posted a 70% drop in first-quarter profits, hurt by foreign exchange losses and higher financing costs.

Net profit declined to IDR110.4bn (US$10m) compared to IDR373.5bn in the same quarter of the previous year.

Operating profit also declined, to IDR1.13tn from IDR1.22tn in the comparable period of 2008.

Sales, however, rose to IDR8.91tn from IDR8.85tn a year earlier.

The company’s consumer branded product group, which now comprises noodles, food seasoning, snack foods, nutrition & special foods, and a dairy division, contributed 44.5% to consolidated net sales. This is an increase of 31.7%, partly due to the consolidation of dairy business Indolakto, which was acquired in late December 2008.

Anthoni Salim, the president director and CEO of Indofood, said: “The rupiah weakness continued to undermine our bottom line. Our overall results from operations remains resilient to the various challenges presented, reflecting the strength of our business model.”