REG - M. P. Evans Group - AGM Statement

M P EvansAnnouncement

13/06/2025 07:00

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RNS Number : 6621M  M. P. Evans Group PLC  13 June 2025

M.P. EVANS GROUP PLC

("Group" or "M.P. Evans")

ANNUAL GENERAL MEETING

The annual general meeting of M.P. Evans Group PLC, a producer of sustainable
Indonesian palm oil, will be held at 12pm in London today. Further details
on the AGM, including a link to the live webcast, can be found on the Group's
website at www.mpevans.co.uk/investors/agm
(http://www.mpevans.co.uk/investors/agm) . The following statement is an
update on trading conditions and progress on the Group's activities since the
publication of the annual report on 25 March 2025.

Crops

The total crop of fresh fruit bunches ("ffb") harvested by the Group from the
areas managed by it in the five months to 31 May 2025 was 521,400 tonnes, 11%
higher than the 468,000 tonnes harvested in the same period of 2024. This crop
is split between the areas owned directly by the Group at 397,900 tonnes (2024
- 360,700 tonnes) and that from the associated scheme-smallholder areas at
123,500 tonnes (2024 - 107,300 tonnes). During the first five months of 2025,
the Group has continued to supplement the harvest from the areas it manages by
purchasing additional crop from independent suppliers for processing in its
mills. The total crop purchased in the period to 31 May 2025 was 100,400, down
by 39% on the 163,400 tonnes purchased in the same part of 2024 as the Group
continues to manage carefully the cost and quality of those inputs.

Production

The total crop processed by the Group in the first five months of 2025 was
621,800 tonnes, similar to the 631,400 tonnes in the same part of 2024. As a
result, the Group produced the equivalent of 145,400 tonnes (2024 -
147,500 tonnes) of crude palm oil ("CPO") and 32,100 tonnes (2024 - 33,000
tonnes) of palm kernels ("PK") during the period. Almost all that output came
from the Group's own production facilities. The Group's engineering team has
worked hard to continue delivering robust extraction rates across all mills,
and the average oil-extraction rate in Group mills for the first five months
was 23.5%, a little higher than the 23.4% achieved in the same part of 2024.

Sales and prices

The average price of CPO (cif Rotterdam) for the first five months of the
year was US$1,184 per tonne, 19% higher than the US$997 per tonne during the
equivalent period in 2024. During this period, the Group realised an average
price at mill gate of US$876 per tonne compared with US$770 per tonne in
2024, 14% higher. Prices for palm kernels have been improving noticeably
during the year, in part due to lower production of competing coconut oil, and
the average price is significantly higher than that achieved by the same point
in the previous year at US$770 per tonne (2024 US$425 per tonne).

Acquisition

On 16 April 2025, the Group announced the acquisition of a further 2,750
planted hectares close to the Group's Bumi Mas estate and mill. The total
purchase cost is expected to be approximately US$34.2 million, equivalent to
US$12,500 per planted hectare. The areas being acquired are relatively young,
having been planted since 2016, and so crop is expected to increase in future
years. Following completion, the new areas will be managed as part of the Bumi
Mas estate, and all crop will be sent for processing at the Bumi Mas mill
where there is surplus capacity. The acquisition is in line with the Group's
growth strategy and will be immediately earnings enhancing for shareholders.
As previously announced, completion is likely to take place in the third
quarter of 2025.

Sustainability

The Group is a long-standing member of the Roundtable on Sustainable Palm Oil
("RSPO"). All the Group's mills are already able to dispatch certified
sustainable palm oil, and the Group anticipates receiving its final RSPO
accreditation at its Bumi Mas mill before the end of 2025. As the mix of crop
inputs to Group mills has changed recently, with a larger proportion of crop
processed from areas managed by the Group, so the proportion of certified
output has increased. For the first five months of 2025, 76% of the Group's
total CPO output was certified sustainable (2024 full year - 69%).

Strategy

The Group has four key strategic pillars: it is a responsible producer of
sustainable Indonesian palm oil, striving for excellence in all its
operations, with a focus on continuing growth and offering an increasing
yield.

Acting responsibly is at the heart of everything the Group does. The Group
does not deforest and acts as a good steward of the land it cultivates. It
invests for the long term, in its employees, their training and in the
facilities it provides for them. This approach fosters a culture of
excellence, enabling the consistent delivery of high crop yields and
extraction rates. In turn, the long-term investment, the age profile of the
Group's planted areas and the yields achieved support continuing growth, and
the opportunity to increase shareholder returns.

An increased final dividend of 37.5p per share has been proposed in respect of
2024, which would result in total dividends in respect of the year being a
record 52.5p per share, and it remains the board's intention to continue the
Group's long-term trend to increase, or least maintain, dividends for
shareholders.

 

13 June 2025

 

Enquiries:

 M.P. Evans Group PLC  Telephone: +44 (0) 1892 516333

Peter Hadsley-Chaplin, chairman
Matthew Coulson, chief executive

Luke Shaw, chief financial officer

 

 Cavendish Capital Markets (Nomad and broker)  Telephone: +44 (0) 20 7220 0500

Matt Goode, George Lawson (Corporate Finance)

Tim Redfern, Harriet Ward (Equity capital markets)

 

 Hudson Sandler (Financial PR)  Telephone: +44 (0) 20 7796 4133

Charlie Jack, Nick Moore, Francesca Rosser

 

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