Production Growth Driven by Strong Harvest and Improved Extraction Rates
M.P. Evans (LSE:MPE) reported solid operational progress during the five months to 31 May 2026, with fresh fruit bunch production increasing 10% to 575,100 tonnes and crude palm oil (CPO) output rising 8% to 157,600 tonnes.
The improvement was supported by stronger extraction rates and the company’s continued focus on expanding production from its own-managed plantations, which typically deliver higher-quality yields than externally sourced crop.
Sustainability also remained a key focus, with approximately 82% of the group’s CPO production now certified as sustainable.
Pricing Remains Supportive as Costs Stay Under Control
The company said market conditions remained favourable, with both crude palm oil and palm kernel prices continuing to trade at healthy levels.
Despite broader inflationary pressures affecting agricultural inputs globally, M.P. Evans maintained broadly stable unit production costs, supporting profitability and operational efficiency across its plantation portfolio.
Management also noted that proposed changes to Indonesian export regulations are not expected to have a material impact on the business, as the group sells its palm oil into the domestic market rather than exporting CPO directly. To date, no significant effect on pricing has been observed.
Capital Returns Strengthened Through Buybacks and Dividend Growth
M.P. Evans highlighted continued progress at its recently acquired estates in East Kalimantan, where yields are improving as integration efforts advance.
Reflecting confidence in the business and its outlook, the company has resumed its share buyback programme with an initial £2.0 million allocation. It also plans to seek broader buyback authority from shareholders at its upcoming annual general meeting.
In addition, the board has proposed a record total dividend of 60p per share for 2025, reinforcing its commitment to a progressive capital-return strategy.
Strong Fundamentals Continue to Support Outlook
The group’s outlook remains underpinned by robust financial performance, characterised by strong profitability, solid cash generation and a debt-free balance sheet.
Valuation metrics also remain attractive, supported by a low price-to-earnings ratio and a healthy dividend yield. While technical indicators continue to point to a positive longer-term trend, elevated RSI and stochastic readings suggest momentum may be stretched in the near term, potentially limiting short-term upside.
More About M.P. Evans
M.P. Evans Group PLC is a UK-listed producer of sustainable palm oil with plantation and milling operations across Indonesia. The company focuses on producing higher-quality crude palm oil and palm kernels from its own-managed estates, supplying domestic Indonesian refiners rather than exporting directly. Through its emphasis on operational efficiency, sustainability and RSPO-certified production, the group has established itself as a significant participant in Indonesia’s palm oil sector.
Leave a Reply