REG - M. P. Evans Group - Crop and production

M P EvansAnnouncement

20/01/2025 07:00

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RNS Number : 8580T  M. P. Evans Group PLC  20 January 2025

M. P. EVANS GROUP PLC

("THE GROUP")

2024 crop and production

M.P. Evans Group PLC, a producer of sustainable Indonesian palm oil, is
pleased to announce the following crop and production information for the year
ended 31 December 2024:

                                             2024   Increase     2023

                                                    (decrease)
                                      Tonnes        %            Tonnes
 Crop of fresh fruit bunches ("ffb")
 Own crops                            937,000       2            922,900
 Scheme-smallholder crops             285,900       3            278,500
 Independent crops purchased          386,000       (8)          421,500
                                      1,608,900     (1)          1,622,900
 Production*
 Crude palm oil ("CPO")               372,200       (2)          378,500
 Palm kernels ("PK")                  81,300        1            80,600

*- figures include production from the Group's crop sold to third-party mills.

Crop levels across Indonesia, as a whole in 2024, were adversely affected by
dry weather conditions in the latter part of the preceding year and,
unusually, the country is likely to report a decrease in total output for the
year. Against this backdrop, the Group is pleased to report a small increase
in the crop harvested from the enlarged area managed by it during the year
which, when combined with purchases from independent suppliers, resulted in a
very similar total crop for processing of 1.6 million tonnes.

The Group received an average mill-gate price for its CPO of US$823 per tonne
in 2024, 13% higher than the US$729 in the previous year. Prices were
particularly robust in the second half, with dispatches averaging
approximately US$950 per tonne in the last two months of the year. This high
price environment continued to have a positive effect on the Group's revenue
and profitability, as reported in the Group's announcement on 15 November
2024. Whilst prices have recently eased from these higher levels, sales in the
early part of 2025 continue to be at higher than the 2024 average price.

The Group remains committed to operating sustainably, and all six of the
Group's palm-oil mills now sell certified sustainable palm oil. More
information is available in the Group's environmental, social and governance
('ESG') report available via the Group's website. In addition, the Group was
pleased to receive an upgraded score of 88.9% in the November 2024 ESG policy
transparency assessment conducted by the Zoological Society of London.

The Group continued to be highly profitable and cash generative during 2024,
and these resources were put to good use as the Group allocated capital
towards continuing growth, maintaining its financial strength, and offering
attractive returns to its investors. The Group has an unbroken track record
spanning more than thirty years of maintaining or increasing its annual
dividend and, considering its crop and production figures for the year, the
CPO price environment, and the Group's strong operating cash flows resulting
therefrom, the board remains committed to this policy.

M.P. Evans chairman, Peter Hadsley-Chaplin, commented: "The Group has, once
again, delivered excellent operational results in 2024, notwithstanding some
weather-related challenges during the year. 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."

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 (ECM)

 

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

Charlie Jack, Kerrigan, Francesca Rosser

 

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