Strauss Group, the Israeli food and beverage firm, has seen higher input costs weigh on first-quarter profits.

The company said higher coffee costs had hit earnings during the first three months of the year.

Coffee accounts for almost half Strauss’ business and the company said more expensive green coffee had eaten into profits.

Strauss posted first-quarter operating profit of NIS136.7m (US$42.3m), a rise of 0.3% on the year.

While profits were flat, sales rose 8% to NIS1.5bn.