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MP Evans Group PLC on Monday said ‘strong’ palm oil and kernel pricing in the second half will benefit full-year performance. The Tunbridge Wells, England-based producer of Indonesian crude palm oil noted persistently higher crop yields and a ‘strong pricing environment’ during the second half of the year. During the six months to the end of June, MP Evans said crops harvested totalled 619,100 tonnes, up 9% on-year, with the yearly increase moderating to 8% in August. At the end of October, crops harvested in the year-to-date remained 8% ahead of the previous year, according to the producer. ‘Management has been restricting the purchase of crop from independent suppliers to deliberately change the mix of inputs to group mills for the benefit of sustainability and margin. At the end of June, the year-on-year decrease in crop purchases was 39% and, by the end of October, this figure was very similar, at 40%,’ MP Evans added. The company cited favourable pricing as more significant, with higher prices continuing into November sales. For crude palm oil, MP Evans booked an average ex-mill-gate price of $868 per tonne during the first half, which it said was maintained at $869 by the end of October. The company is tendering November sales at about $850 per tonne. For palm kernels, the average per tonne was $747, increased to $756 by October 31, and currently seen at around $850 per tonne in November. ‘This robust pricing environment, combined with a continued focus on cost control, means the board expects group revenue to be higher than previously envisaged, with enhanced anticipated profitability,’ the company said. Revenue was $352.8 million in 2024, while pretax profit was $113.5 million. ‘Cash generation has also remained strong thus far in the second half of the year and, as a result, the group has taken the opportunity to repay all outstanding loans,’ MP Evans added. Outstanding loans amounted to $20.9 million as of June 30. The company’s year-end update for 2025 is due in January. MP Evans shares rose 5.8% to 1,370.00 pence on Monday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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