REG - M. P. Evans Group - Final Results 2025
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RNS Number : 7652X M. P. Evans Group PLC 24 March 2026
M.P. EVANS GROUP PLC
FINAL RESULTS 2025
ANOTHER YEAR OF RECORD PROFITS AND INCREASING SHAREHOLDER RETURNS
M.P. Evans Group PLC ("M.P. Evans", "the Group" or "the Company"), a producer
of sustainable Indonesian palm oil, announces its results for the year ended
31 December 2025. The Group has, once again, achieved record-breaking results
during the year. Pricing for the Group's key products, crude palm oil and palm
kernels, remained strong during 2025, and the Group focused on processing a
greater proportion of its own, high-quality crop, benefiting margins. Planted
hectarage under management increased during the year, now exceeding 70,000
hectares.
The Group's 2025 annual report and a video overview of the results are
available on its website at www.mpevans.co.uk (http://www.mpevans.co.uk) .
HIGHLIGHTS
Financial
- Average mill-gate price for Group CPO US$866 per tonne (2024
US$823 per tonne)
- Revenue for the year US$371.0 million (2024 US$352.8 million)
- Gross profit US$142.2 million (2024 US$116.6 million)
- Earnings per share 161.3 pence (2024 - 129.6 pence)
- Operating cash generation US$161.5 million (2024 US$152.6 million)
- Cash balance at year end of US$87.5 million (2024 net cash of
US$46.4 million)
- Dividend for the year 60.0p per share (2024 - 52.5p per share)
with proposed final dividend of 42.0p per share (2024 - 37.5p per share)
Operational
- Total crop harvested in Group-managed areas up 7% to 1.3 million
tonnes
- Six certified sustainable palm-oil mills in operation throughout
year processing 94% of total crop
- Further increase in certified sustainable CPO, up to 275,000
tonnes (2024 - 257,000 tonnes)
- Earnings-enhancing acquisition of more than 3,000 planted hectares
close to Group's Bumi Mas estate
- Further planting at Group's Kota Bangun and Musi Rawas estates for
future crop growth
- 37 million kWh of renewable energy generation, resulting in more
than US$4 million of savings
- Actively seeking new strategic acquisitions
Commenting on the results, Peter Hadsley-Chaplin, chairman of M.P. Evans,
said: "We have had an excellent year in 2025, harvesting and processing more
of our own crop than ever before in our own, efficient palm-oil mills,
delivering an increase in certified sustainable production. We have achieved
record profitability, and dividends have increased to 60p per share. Since the
year end, crops have continued to increase in the early part of 2026, and
pricing for the Group's output remains strong."
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 joint broker) Telephone: +44 (0) 20 7220 0500
Matt Goode, George Lawson (Corporate finance)
Harriet Ward (ECM)
Canaccord Genuity Limited (Joint broker) Telephone: +44 (0) 20 7523 4500
Henry Fitzgerald O'Connor, George Grainger
Alma Strategic Communications (Financial PR) Telephone: +44 (0) 20 3405 0205
Rebecca Sanders-Hewett, Josh Royston, David Ison
A presentation for analysts will be held today at 9.30am in the City of
London.
CHAIRMAN'S STATEMENT
Results
The Group achieved another record year in 2025, with gross profit of US$142.2
million, 22% higher than the US$116.6 million in 2024. Earnings per share in
2025 were 161.3p (2024 - 129.6p). Whilst production levels were similar to the
previous year, the Group focused on processing its own crop rather than
purchasing from outside suppliers, helping to improve margins. Additionally,
pricing for the Group's main products, crude palm oil ("CPO") and palm kernels
("PK"), was higher than in the previous year, also boosting profitability. The
Group, once again, generated a substantial amount of operating cash, with
operating cash generation of US$161.5 million (2024 US$152.6 million).
Dividend
An interim dividend of 18p per share (2024 - 15p per share) was paid on 7
November 2025 and the board is recommending a final dividend of 42p per share
(2024 - 37.5p per share). The total dividend of 60p per share (2024 - 52.5p
per share) represents a 7.5p per share increase on the previous year, as was
the case for 2024, and shows the Group's ongoing commitment to its progressive
dividend policy. The Group is proud of its track record, which now goes back
for 35 years, of maintaining or increasing normal dividends.
Strategic developments
The Group progressed with its strategic objectives during 2025. We seek to be
a responsible producer of sustainable Indonesian palm oil, focusing on
excellence in all our operations, with a continued priority for further growth
and, at the same time, delivering an increasing and attractive yield for
shareholders.
Responsible operation remains central to everything that the Group does. The
Group produces green electricity from the power plants connected to palm-oil
mills and our sustainability team works tirelessly to ensure that our mill
output achieves and maintains sustainable accreditation.
We continued to grow during 2025, and were proud to report a further
earnings-enhancing acquisition in July, when we added over 3,000 planted
hectares close to our Bumi Mas estate in East Kalimantan. This was in line
with the Group's strategy of adding planted hectarage close to our existing
estates, particularly those with our own milling capacity. The newly acquired
hectarage has already been integrated into the existing Bumi Mas estate and
the enlarged property is being run as a single operating unit with all crop
being sent to our Bumi Mas mill for processing.
Alongside the acquired planted hectarage, the Group has continued to plant
more hectares at its existing estates, particularly Musi Rawas in South
Sumatra and Kota Bangun in East Kalimantan, where it has been possible to
plant additional areas at one of the properties acquired by the Group in 2023.
Taking the acquisition and the further planting together, the area managed by
the Group grew by almost 5,000 hectares during 2025 and, by the end of the
year, the Group managed over 70,000 planted hectares. Over the last three
years, the total area managed by the Group has increased by more than 30 per
cent, as a result of our acquisition and planting programmes.
Sustainability
The volume and proportion of certified sustainable production increased during
the year. Delivering certified sustainable output remains a core part of the
Group's strategy and all six Group mills are certified sustainable producers.
The total amount of certified sustainable CPO production was just over 275,000
tonnes, representing 80% of the production in Group mills, or 76% of the
overall Group total. This compares to 257,000 tonnes in 2024, which was 69% of
that year's total production. As the Group's harvest continues to increase and
reliance on buying outside crop diminishes further, so the proportion of
certified output should continue to rise.
During 2025, everyone in the Group played a part in achieving additional
recognition from third parties who report on the Group's ESG commitments and
disclosures. The Group has, for many years, received a rating from the
Zoological Society of London as part of its SPOTT palm oil ESG transparency
index. In 2025, the Group achieved a further increase to an overall rating of
91%. Additionally, the Group has now completed CDP (formerly known as the
Carbon Disclosure Project) reporting, covering each of the categories of
climate change, forests and water security, and has been rated by CDP with a
very respectable 'B' grade.
The Group publishes regular, more detailed, TCFD (Taskforce on Climate-related
Financial Disclosures) and ESG reports, with additional analysis of its
approach to these areas, and these are available from the sustainability
section of the Group's website.
Indonesian environment
In Indonesia, President Prabowo Subianto has been in office since late 2024.
Following his appointment, during 2025, a task force known as "Satgas" was
established to review regulatory compliance by palm-oil companies and, in some
cases, to levy fines and reclaim land for state ownership. The Group has
always recognised the importance of responsible development. This includes
following due process and ensuring that land titles are fully documented. As a
result, to date, there has been no material impact of Satgas' activities on
Group operations.
Operational developments
The total crop harvested by the Group from its own areas and those of its
connected smallholders during 2025 was 1,308,800 tonnes, an increase of 7% on
the 1,222,900 tonnes harvested in the previous year. A further 229,200 tonnes
(2024 - 386,000 tonnes) were purchased for processing from independent
suppliers, deliberately down on the previous year as the market for outside
crop became more competitive and less reliable.
2025 Increase/ 2024
(decrease)
Tonnes % Tonnes
Crop
Own crops
Kota Bangun 304,200 7 284,000
Bangka 127,900 (7) 137,400
Pangkatan 170,000 1 168,600
Bumi Mas 175,300 21 144,800
Musi Rawas 156,500 15 136,100
Simpang Kiri 75,400 14 66,100
1,009,300 8 937,000
Scheme-smallholder crops
Kota Bangun 112,700 7 105,500
Bangka 75,900 (7) 81,400
Pangkatan 7,600 46 5,200
Bumi Mas 32,700 12 29,200
Musi Rawas 69,200 8 64,000
Simpang Kiri 1,400 133 600
299,500 5 285,900
Crop harvested 1,308,800 7 1,222,900
Independent crops purchased
Kota Bangun 104,000 (28) 144,200
Bangka 73,400 (20) 91,400
Pangkatan 16,100 (57) 37,200
Bumi Mas 6,200 (84) 39,800
Musi Rawas 29,500 (60) 73,400
229,200 (41) 386,000
Total crop 1,538,000 (4) 1,608,900
The Group produced certified sustainable output at all six of its palm-oil
mills throughout 2025. Of the crop harvested by the Group at its six key
operating locations, 94% was processed in one of the Group's own mills. All
crop purchased from independent suppliers is processed by the Group. Total
output from the Group's mills arising from its own harvest increased during
the year but, because of the planned reduction in crop purchased from
independent suppliers, total output from those mills in 2025 was 342,600
tonnes of CPO and 75,300 tonnes of PK, lower by 4% and 3% respectively than
the same figures in 2024.
Increase/
2025 (decrease) 2024
Production - crude palm oil Tonnes % Tonnes
Group mills
Kota Bangun 120,900 (2) 123,500
Bangka 63,800 (9) 70,200
Pangkatan 44,300 (6) 47,200
Bumi Mas 50,500 (2) 51,300
Musi Rawas 63,100 (1) 64,000
342,600 (4) 356,200
Third-party mills
Kota Bangun 1,000 - 1,000
Simpang Kiri 17,200 15 15,000
18,200 14 16,000
360,800 (3) 372,200
Production - palm kernels
Group mills
Kota Bangun 26,200 (4) 27,200
Bangka 16,500 (7) 17,800
Pangkatan 10,600 (3) 10,900
Bumi Mas 9,600 - 9,600
Musi Rawas 12,400 (1) 12,500
75,300 (3) 78,000
Third-party mills
Kota Bangun 200 (33) 300
Simpang Kiri 3,400 13 3,000
3,600 9 3,300
78,900 (3) 81,300
Extraction rates - crude palm oil % % %
Group mills
Kota Bangun - Bumi Permai 24.1 (1) 24.3
Kota Bangun - Rahayu 22.4 1 22.1
Bangka 23.0 2 22.6
Pangkatan 22.9 2 22.4
Bumi Mas 23.6 (2) 24.0
Musi Rawas 24.7 6 23.4
23.5 1 23.2
Third-party mills
Kota Bangun 20.0 9 18.3
Simpang Kiri 22.5 - 22.5
Extraction rates - palm kernels
Group mills
Kota Bangun - Bumi Permai 5.7 2 5.6
Kota Bangun - Rahayu 4.2 (7) 4.5
Bangka 6.0 5 5.7
Pangkatan group 5.5 6 5.2
Bumi Mas 4.5 - 4.5
Musi Rawas 4.9 7 4.6
5.2 2 5.1
Third-party mills
Kota Bangun 4.5 (8) 4.9
Simpang Kiri 4.4 - 4.4
The Group continued to grow the area under its management during 2025, with
almost 5,000 planted hectares added during the year, through a combination of
acquisition and new planting at its existing estates.
The Group originally acquired its estate at Bumi Mas in East Kalimantan in
2017 and has consistently been improving yields since that time. An on-site
60-tonne-per-hour mill was built, and this became operational in 2021. Until
this year, the total planted area under management has been just under 9,000
hectares and, even with the purchase of available independent crop, the Bumi
Mas mill has had the highest amount of spare capacity when compared to the
others in the Group. As referred to above, during 2025, the Group was
successful in acquiring a further 3,000 planted hectares close to Bumi Mas,
increasing the Group-managed area there by over 33%. All of the crop from the
acquired area is being processed in the Bumi Mas mill, improving utilisation
and, whilst crop from the acquired area is already at an encouraging level, it
is expected to increase in the coming years, to the further benefit of mill
utilisation.
The management team at the Group's Musi Rawas estate in South Sumatra is
continuing to do excellent work, securing additional suitable areas for
further planting at that estate. More than 500 hectares were planted during
the year, bringing the total developed area at Musi Rawas to just over 11,400
hectares.
The increasing crop from Musi Rawas as further areas mature is providing
valuable input to the Group's on-site mill and helping to improve production
from that very efficient facility.
During 2023, the Group acquired over 8,000 planted hectares which forms part
of its enlarged Kota Bangun estate. As reported in 2024, the Group had
identified some environmentally suitable areas in the acquired land which were
available for further planting and had set a target to plant an additional
1,000 hectares. By the end of 2025, a little over 1,000 hectares had been
planted, with more opportunities identified for 2026.
Current trading and prospects
The Group continued to experience crop increases across almost all its
Indonesian estates in the first two months of 2026, extending the trend seen
in the latter part of 2025. A further benefit is coming from recent
acquisitions, and the Group's new areas at Bumi Mas continue to perform well
in their first full year following acquisition in the middle of the previous
year. Overall, the total crop harvested by the Group, either from its own
areas or from areas managed on behalf of associated scheme smallholders, has
increased by 10% since the first two months of 2025.
Once again, the Group has restricted the amount of higher-cost, lower-quality
crop purchased from independent suppliers as it continues to focus on
processing a greater proportion of better inputs harvested from areas managed
by the Group's skilled agronomic teams. This is expected to be a continuing
benefit for the Group's gross margin.
Overall, total crop processed in the first two months of 2026 was 246,200
tonnes. Details are set out in the following table:
2 months ended Increase/ 2 months ended
28 February 2026 (decrease) 29 February 2025
Tonnes % Tonnes
Own crops 169,500 13 150,100
Scheme-smallholder crops 50,100 - 50,000
Independent crops purchased 26,600 (33) 39,500
246,200 3 239,600
The Group's average mill-gate selling price for its CPO was US$866 per tonne
during 2025. Pricing has remained encouragingly strong during the first two
months of the new year, and the Group has seen some sales tenders exceed
US$900 per tonne. Overall, in the two months to February 2026, the average
tender price was approximately US$860 per tonne. PK pricing, whilst not at the
elevated levels seen during some of 2025, has also remained robust in the
early part of 2026, with an average tender price in the first two months of
the year of approximately US$760 per tonne.
The Group continues to be focused on opportunities for growth and expects to
be planting more new areas, both in South Sumatra and in East Kalimantan
during 2026, and is taking steps in both locations to secure areas, agree land
compensation, prepare ground and ensure planting material is ready. In
addition, the Group is developing a number of land acquisition opportunities,
with projects close to existing estates which would enable the Group to make
existing estates and mills work even more efficiently and profitably.
Over recent weeks, conflict has, once again, escalated in the Middle East,
spilling over from Iran to several countries in the region. Our primary
concern is for those whose lives are affected during this turmoil. The world
is likely to experience a period of high mineral-oil pricing and, as a
knock-on effect, the Group may also receive some higher prices for its CPO
output. However, this may also come with some increased input costs for fuel
and fertiliser.
After a successful 2025, and with a good start to 2026 already achieved, the
Group is clear about its priorities for continued prosperity and ongoing
growth as a producer of certified sustainable palm oil. Management is focused
on maintaining the Group's position as a high-quality, low-cost producer with
a reputation for excellence. On this basis, the board is confident of its
position of offering a progressive dividend for shareholders and that the
Group's overall prospects remain secure.
Peter Hadsley-Chaplin
Chairman
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2025
2025 2024
US$'000 US$'000
Continuing operations
Revenue 370,995 352,839
Cost of sales (228,774) (236,249)
Gross profit 142,221 116,590
(Loss)/gain on biological assets (139) 1,847
Foreign-exchange gain/(loss) 1,217 (23)
Other administrative expenses (6,446) (5,930)
Other income 1,978 3,211
Operating profit 138,831 115,695
Finance income 2,004 1,236
Finance costs (1,128) (3,441)
Profit before tax 139,707 113,490
Tax on profit on ordinary activities (29,688) (25,213)
Profit after tax 110,019 88,277
Share of associated companies' profit after tax 2,969 2,355
Profit for the year 112,988 90,632
Attributable to:
Owners of M.P. Evans Group PLC 111,165 87,851
Non-controlling interests 1,823 2,781
112,988 90,632
US cents US cents
Continuing operations
Basic earnings per 10p share 212.9 165.9
Diluted earnings per 10p share 211.8 165.1
Pence Pence
Basic earnings per 10p share
Continuing operations 161.3 129.6
CONSOLIDATED BALANCE SHEET
As at 31 December 2025
Company number: 1555042
2025 *2024 *2023
US$'000 US$'000 US$'000
Non-current assets
Goodwill 1,158 1,158 1,158
Other intangible assets 694 852 1,012
Property, plant and equipment 511,632 480,983 486,915
Investments in associates 12,967 10,524 10,003
Investments 67 61 59
Deferred-tax asset 2,577 1,808 1,138
Trade and other receivables - - 8,875
529,095 495,386 509,160
Current assets
Biological assets 5,628 5,635 3,788
Inventories 22,842 22,788 24,155
Trade and other receivables 20,189 20,847 23,853
Current-tax asset 2,705 7,777 8,673
Current-asset investments - 214 270
Cash and cash equivalents 87,481 79,223 39,324
138,845 136,484 100,063
Total assets 667,940 631,870 609,223
Current liabilities
Borrowings - 12,953 21,009
Trade and other payables 24,931 33,122 27,547
Current-tax liability 13,367 13,029 6,279
38,298 59,104 54,835
Net current assets 100,547 77,380 45,228
Non-current liabilities
Borrowings - 20,074 33,413
Deferred-tax liability 7,979 8,204 5,595
Retirement-benefit obligations 14,005 13,141 12,429
21,984 41,419 51,437
Total liabilities 60,282 100,523 106,272
Net assets 607,658 531,347 502,951
Equity
Share capital 8,933 8,922 9,062
Other reserves 55,391 53,887 53,263
Retained earnings 535,170 460,816 420,626
Equity attributable to the owners of MP Evans Group PLC
599,494 523,625 482,951
Non-controlling interests 8,164 7,722 20,000
Total equity 607,658 531,347 502,951
*Restated - see note 3
CONSOLIDATED CASH-FLOW STATEMENT
For the year ended 31 December 2025
2025 2024
US$'000 US$'000
Net cash generated by operating activities 137,110 135,800
Investing activities
Acquisition of subsidiaries, net of cash acquired (20,484) -
Purchase of property, plant and equipment (24,627) (21,630)
Purchase of intangible assets (25) (24)
Interest received 2,004 1,050
Repayment of loans made to smallholder co-operatives 413 2,291
New loans to smallholder co-operatives (460) (1,608)
Bank deposits treated as current-asset investments 207 44
Proceeds on disposal of property, plant and equipment 377 548
Net cash used by investing activities (42,595) (19,329)
Financing activities
Acquisition of non-controlling interest - (6,000)
New borrowings - 637
Repayment of borrowings (32,541) (21,145)
Repayment of loans assumed on acquisition (12,552) -
Dividends paid to Company shareholders (38,721) (32,339)
Dividends paid to non-controlling interest (1,400) (3,145)
Issue of Company shares - 107
Buyback of Company shares - (13,367)
Net cash used by financing activities (85,214) (75,252)
Net increase in cash and cash equivalents 9,301 41,219
Net cash and cash equivalents at 1 January 79,223 39,324
Effect of foreign-exchange rates on cash and cash
equivalents (1,043) (1,320)
Cash and cash equivalents at 31 December 87,481 79,223
Notes
1. Dividends paid and proposed
2025 2024
US$'000 US$'000
2025 interim dividend - 18p per 10p share (2024 interim dividend 15p)
12,309 10,448
2024 final dividend - 37.5p per 10p share (2023 final dividend 32.5p)
26,412 21,891
38,721 32,339
Following the year end, the board has proposed a final dividend for 2025 of
42.0p per 10p share, amounting to US$29.6 million. The dividend will be paid
on or after 18 June 2026 to shareholders on the register at the close of
business on 24 April 2026.
2. Basic and diluted earnings per share
The calculation of earnings per 10p share is based on:-
2025 2024
2025 Number 2024 Number
US$'000 of shares US$'000 of shares
Profit for the year attributable to the owners
of M.P. Evans Group PLC 111,165 87,851
Average number of shares in issue 52,217,936 52,962,578
Diluted average number of shares in issue* 52,484,210 53,223,589
*The difference between the number of shares in issue and the diluted number
of shares relates to unexercised share options held by directors and key
employees of the Group.
3. Prior-year adjustment
The Group made a prior-year adjustment to goodwill, deferred-tax liabilities
and opening reserves following a review of previous acquisition accounting. In
previous years, a deferred-tax liability had been recognised, along with
related goodwill on fair value adjustments made to land on acquisition. On
review, it was concluded that no such deferred-tax liability should be
accounted for. Prior year goodwill assets and deferred-tax liabilities have
been reduced by US$15.9 million and US$13.8 million respectively with a
remaining US$2.1 million adjusted to opening reserves in 2024.
4. Financial information
The financial information has been derived from the Company's audited accounts
but does not itself constitute statutory accounts within the meaning of
section 435 of the Companies Act 2006. The statutory accounts for the
financial year ended 31 December 2025 have been reported on by the Group's
auditors, BDO LLP, and will be filed with the Registrar of Companies. The
report of the auditors thereon was unqualified and did not contain a statement
under section 498(2) or (3) of the Companies Act 2006, nor did it contain any
matters to which the auditors drew attention without qualifying their audit
report.
5. International Accounting Standards
This announcement is based on the Group's financial statements which were
prepared in accordance with UK-adopted International Accounting Standards.
6. Distribution timetable
The Group's 2025 annual report is available on the Group's website and will be
despatched to shareholders on or before 10 April 2026. Printed copies of the
Group's 2025 annual report will be available from the Company, 3 Clanricarde
Gardens, Tunbridge Wells, Kent TN1 1HQ. The annual general meeting will be
held on Friday 12 June 2026.
By order of the board
Katya Merrick
Company secretary
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