REG - M. P. Evans Group - Strong CPO pricing during second half of 2024

M P EvansAnnouncement

15/11/2024 07:00

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RNS Number : 3253M  M. P. Evans Group PLC  15 November 2024

 

M.P. EVANS GROUP PLC

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

 

STRONG CPO PRICING DURING SECOND HALF OF 2024

 

The board of M.P. Evans Group PLC, a producer of sustainable Indonesian palm
oil, is pleased to report the recent and continuing strength in the price of
crude palm oil ("CPO"), the Group's main product, which will have a beneficial
impact on the Group's results for 2024.

 

In the Group's 2024 interim results announcement on 16 September 2024, the
board indicated that the Group's total crop for processing in 2024 was
expected to be similar to 2023 at 1.6 million tonnes. Taking account of
volumes since that date, this remains the board's expectation.

 

The board also stated that, having achieved an average mill-gate price for its
CPO of US$777 per tonne for the first eight months of the year, there was a
risk that prices could fall in the remainder of the year. This has not
happened and, furthermore, CPO prices have strengthened significantly since
the Group's interim results announcement in response to a tightening of global
vegetable-oil supplies. As a consequence, the Group has consistently achieved
mill-gate prices higher than the eight-month average such that the average for
the first ten months of the year has increased to approximately US$800 per
tonne. Some Group sales in November have exceeded US$950 per tonne.

 

This more favourable pricing environment, combined with a continued focus on
cost control, means that the board expects Group revenue to be higher than
that previously envisaged, and that there will be a more significant impact on
anticipated profitability.

 

The Group will provide a further update for the whole of 2024 in its crop,
production and pricing announcement due to be released in January 2025.

 

 

This announcement contains information for the purposes of Article 7 of the
Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed
in accordance with the Company's obligations under Article 17 of MAR.

 

 

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 (Financial PR)                     Telephone: +44 (0) 20 7796 4133
 Charlie Jack, Francis Kerrigan, Francesca Rosser

 

 

 

 

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