Petra Foods' net profit crashed 42.8% to $10.2m in Q1

Due to Indonesia's slowdown.

Petra Foods reported that its net profit slipped 42.8% year-on-year to $10.2m (US$7.7m) in the first quarter.

The decline was brought about by the continued slowdown of the Indonesian economy and weak consumer sentiment in the archipelago.

"As a result, our trade customers have reacted to reduce their inventory levels, which have negatively affected our sales. Our profit performance was further affected by increases in our costs of raw and packaging materials which increased due to the weaker Rupiah," stated Petra Foods.

The group also cautioned that its FY15 performance will be hampered by the challenging operating environment in Indonesia and volatility in regional currencies.

"The prevailing economic uncertainty in Indonesia is having an effect on consumer spending generally and demand for our products is not immune to this. We will therefore be adopting a cautious approach over the short term," said Petra Foods CEO John Chuang.