MP Evans reports stable full-year production
By Josh White
Date: Monday 20 Jan 2025
(Sharecast News) - MP Evans reported a stable production performance for 2024 on Monday, despite challenging weather conditions across Indonesia, with fresh fruit bunches (FFB) from its own estates increasing by 2% to 937,000 tonnes.
The AIM-traded firm said scheme-smallholder crops rose 3% to 285,900 tonnes, while independent crop purchases declined by 1% to 386,000 tonnes, resulting in a total crop processed of 1.6 million tonnes, broadly in line with the prior year.
Crude palm oil production declined 2% to 372,200 tonnes, while palm kernel production increased by 1% to 81,300 tonnes.
The group noted that dry weather in the prior year impacted industry-wide output, but said its expanded estate area contributed to maintaining production levels.
MP Evans achieved an average mill-gate price of $823 per tonne for crude palm oil in 2024, representing a 13% increase from $729 per tonne in the prior year.
Prices were particularly strong in the second half, with dispatches in the final two months averaging about $950 per tonne.
Although prices had eased from those highs, early 2025 sales continued to exceed the 2024 average, contributing positively to revenue and profitability.
The group reaffirmed its commitment to sustainability, with all six of its palm oil mills now selling certified sustainable palm oil.
It also achieved an upgraded ESG policy transparency score of 88.9% in the Zoological Society of London's November assessment.
MP Evans said it maintained strong profitability and cash generation during the year, with capital allocation focused on growth, financial resilience, and shareholder returns.
The company had a consistent track record of maintaining or increasing its annual dividend over the last 30 years, with the board saying it remained committed to that policy in light of its robust operational and financial performance.
"The group has, once again, delivered excellent operational results in 2024, notwithstanding some weather-related challenges during the year," said chairman Peter Hadsley-Chaplin.
"Combining this with the robust price environment, the Group will deliver a strong result for 2024, enabling it, as a responsible palm-oil producer focused on excellence, to recommit to its strategic priorities to deliver continuing growth and an increasing yield."
At 1030 GMT, shares in MP Evans Group were up 1.46% at 876p.
Reporting by Josh White for Sharecast.com.
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