MP Evans sees 11pc increase in harvested crop volumes
By Josh White
Date: Friday 13 Jun 2025
(Sharecast News) - MP Evans said in an update on Friday that it has seen an 11% year-on-year increase in harvested crop volumes in the first five months of 2025, supported by stronger output from both its directly managed estates and smallholder schemes.
The AIM-traded Indonesian palm oil producer, which was holding its annual general meeting, said it had harvested 521,400 tonnes of fresh fruit bunches in the year to 31 May, compared with 468,000 tonnes in the same period last year.
Output from its own estates rose to 397,900 tonnes, while production from associated smallholders climbed 15% to 123,500 tonnes.
Crop purchases from independent suppliers were down 39%, as the company focused on managing cost and quality.
Despite the higher internal crop volumes, total processed crop was broadly unchanged at 621,800 tonnes, leading to crude palm oil production of 145,400 tonnes, just below the 147,500 tonnes recorded a year earlier.
Oil extraction rates improved slightly to 23.5%, up from 23.4%.
Prices strengthened significantly, with CIF Rotterdam benchmark crude palm oil (CPO) prices averaging $1,184 per tonne, up 19% year-on-year.
The group achieved an average mill-gate price of $876 per tonne, a 14% improvement.
Palm kernel prices rose sharply to $770 per tonne, compared with $425 per tonne last year, supported by tight coconut oil supply.
In April, MP Evans announced the $34.2m acquisition of 2,750 planted hectares near its Bumi Mas estate.
The land, planted since 2016, was expected to support future volume growth and would be integrated into the Bumi Mas operation, which has available mill capacity.
Completion was anticipated in the third quarter of this year.
Sustainability efforts remained central to the group's strategy.
MP Evans said it expected to complete RSPO certification for its Bumi Mas mill by year-end.
For the first five months of 2025, 76% of its CPO output was certified sustainable, up from 69% for the whole of 2024.
A final dividend of 37.5p per share had been proposed, taking the total for 2024 to a record 52.5p.
The board reaffirmed its intention to maintain or increase dividends over time, consistent with its long-term growth strategy.
At 1443 BST, shares in MP Evans were up 4.85% at 1,080p.
Reporting by Josh White for Sharecast.com.
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