12th Sep 2013 09:47
LONDON (Alliance News) - M.P. Evans Group Thursday said its pretax profits fell by 33% in its first half as a result of lower palm-oil prices.
The Indonesian palm-oil and cattle-production company said its pretax profit fell to USD10.3 million from USD15.3 million for the six months ended June 30.
M.P.Evans sales fell marginally to USD38.4 million from USD38.6 million as the palm-oil prices averaged USD846 per tonne, 23% lower than USD1,096 in first half of 2012.
The company said its sales costs increased to USD29.0 million from USD24.2 million as it focused heavily on the improvement of the future yield of young plants.
M.P. Evans said it has increased production in an attempt to offset losses and is on track to produce 350,000 tonnes of fresh fruit bunch palm oil from majority-held estates in 2013 and 500,000 tonnes in 2015.
The company said it also lost money on a decline in the price of cattle in Australia, where it completes its cattle sales.
"The Australian beef-cattle price is showing welcome signs of improvement following an increase in export demand and a reported tightening of US supply," Chairman Peter Hadsley said in a statement.
M.P. Evans shares were down 7.50 pence, or 1.5% to 500.00 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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