13th Jun 2025 12:40
(Alliance News) - MP Evans Group PLC on Friday reported a decrease in palm oil output but a higher yield of fresh fruit in the five months to May 31.
The Tunbridge Wells, England-based sustainable palm oil producer focused on Indonesia said crude palm oil output between January and May was 145,400 tonnes, down 1.4% on-year from 147,500t.
However, the fresh fruit bunches crop grew by 11% to 521,400t from 468,000t during the same period in 2024.
The total crop processed in the first five months of 2025 was 621,800t, similar to 631,400t the year prior.
MP Evans noted an improvement to palm kernel prices over the past 5 months, attributing this in part to lower production of major competitor coconut oil. The average kernel price per tonne during the period was USD770, 81% higher than USD425 in 2024.
Meanwhile, the average palm oil price per tonne was USD1,184, up 19% from USD997 on-year. MP Evans said it achieved an average price per tonne at mill gate of USD876, up 14% from USD770.
The firm also highlighted a land acquisition near its Bumi Mas mill, which currently has additional capacity. Announced in April, its estimated cost is USD34.4 million, or USD12,500 per planted hectare. MP Evans noted: "The acquisition is in line with the group's growth strategy and will be immediately earnings enhancing for shareholders." It is expected to complete in the third quarter of this year.
MP Evans added that it anticipates receiving final accreditation for its Bumi Mas mill from the Roundtable on Sustainable Palm Oil before the end of 2025.
The firm will continue raising or at least maintaining dividends, it said. Back in March, MP Evans upgraded the final dividend for 2024 to 37.5p per share, compared with 32.5p in 2023.
MP Evans shares were 5.3% higher at 1,085.00p each on Friday afternoon in London, giving it a market capitalisation of GBP564.02 million.
By Holly Munks, Alliance News reporter
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