Indonesian noodle maker Indofood CBP Sukses Makmur has recorded a decline in first-quarter profit as earnings were hit by a weak performance in its agribusiness unit.

Earnings in the three months to the end of March slid 11.5% to RP722.4m (US$74.3m), while income from operations declined 24.8% to RP1.34trn. Operating margin dropped to 10.4% from 15% last year on lower gross profit and higher operating expenses.

CEO Anthoni Salim said the first quarter performance was “greatly affected by weaker performance of our agribusiness group mainly due to lower CPO [crude palm oil] and rubber prices, as well as higher costs”.

Consolidated net sales grew 8.7% to RP12.86trn, primarily driven by volume growth in all divisions within the group.