Indofood's net profit drops 70 percent through foreign exchange losses

The world's largest noodle maker PT Indofood posted a 70 percent decline in its net profit in the first quarter of this year due to foreign exchange losses and higher financing costs.

Indofood's net profit dropped to Rp 110.4 billion (US$10.26 million) in the first three months of this year from Rp 373.5 billion in the same period a year earlier.

However, its net sales grew slightly, at 0.7 percent to Rp 8.91 trillion in the first quarter.

"The rupiah weakness continued to undermine our bottom line. Our overall operating results remains resilient to various challenges presented, reflecting the strength of our business model," said Indofood president director Anthoni Salim, in a statement.