M.P. EVANS GROUP
PLC
("Group" or "M.P. Evans")
ANNUAL GENERAL MEETING
The annual general meeting of M.P.
Evans Group PLC, a producer of sustainable Indonesian palm oil,
will be held at 12pm in London today. Further
details on the AGM, including a link to the live AGM
webcast, can be found on the Group's website at
www.mpevans.co.uk/investors/agm.
The following statement is an update on trading conditions and
progress on the Group's activities since the publication of the
annual report in March.
Crops
The total crop of fresh fruit
bunches ("ffb") processed by the Group in the five months to 31 May
2024 was 631,400 tonnes, 8% higher than the 584,400 tonnes
processed in the same period in 2023. The Group experienced rapid
growth in crop in the early part of the year and, whilst this has
abated to some degree in recent months, management are pleased to
report year-to-date growth from all sources of crop. Crops by
source were as follows: from majority-owned areas 360,700 tonnes
(2023 - 329,000 tonnes), associated scheme smallholders 107,300
tonnes (2023 - 101,200 tonnes) and independent suppliers 163,400
tonnes (2023 - 154,600 tonnes). Crop increases have been supported
by the areas acquired by the Group in 2023 and, whilst yield from
these estates remains relatively low, significant progress is being
made to improve agronomic standards. This bodes well for future
crop growth.
Production
The Group produced the equivalent of
147,500 tonnes of crude palm oil ("CPO") during the first five
months of 2024, an increase of 10% on the 134,400 tonnes produced
in the same period in 2023. As a result of operating six palm-oil
mills throughout the period, 96% of that CPO came from the Group's
own production facilities, with the remainder from outside mills.
The Group's engineering team has worked hard to continue delivering
robust extraction rates across all mills, and the average
oil-extraction rate in Group mills for the first five months was
23.4%, higher than the 23.0% achieved in the same period of
2023.
Sales and prices
The average price of CPO (cif
Rotterdam) for the first five months of the year was
US$997 per tonne, very similar to the US$1,001 per tonne
during the equivalent period in 2023. During this period, the Group
realised an average price at mill gate of US$770 per tonne
compared with US$779 per tonne in 2023, a 1% difference. Prices for
palm kernels have been improving from a low level at the start of
the year and, by the end of May, year-to-date pricing had exceeded
the previous year's average at US$425 per tonne (2023 US$415 per
tonne).
Acquisition
The Group recently announced the
acquisition of the 5% minority holding in most of its Indonesian
subsidiary trading companies. The total purchase cost was US$14.0
million, based on an agreed price of US$9,000 per planted hectare,
and resulted in an increase in the Group's effective ownership of
high-quality plantation land by over 1,700 hectares. The
acquisition is in line with the Group's growth strategy and will be
immediately earnings enhancing for shareholders.
Sustainability
The Group is a long-standing member
of the Roundtable on Sustainable Palm Oil ("RSPO"). The majority,
and increasing proportion, of its output is certified as
sustainable production and, from early 2024 onwards, all Group
mills are accredited to sell certified sustainable palm oil. With
the benefit of having two mills at Kota Bangun, in early 2024 the
Group took the additional step of obtaining certification for its
Bumi Permai mill at Kota Bangun as a supplier of segregated, or
'identity preserved', CPO, with all crop fully traceable to areas
managed by the Group.
Strategy
The Group has four key strategic
pillars: it is a responsible producer of sustainable
Indonesian palm oil, striving for excellence in all its operations, with
a focus on continuing growth and offering an increasing
yield.
Acting responsibly is at the heart
of everything the Group does. The Group does not deforest and acts
as a good steward of the land it cultivates. It invests for the
long term, in its employees, their training and in the facilities
it provides for them. This approach fosters a culture of
excellence, enabling the consistent delivery of high crop yields
and extraction rates. In turn, the long-term investment, the age
profile of the Group's planted areas and the yields achieved
support continuing growth, and the opportunity to increase
shareholder returns.
An increased total dividend of 45p
per share has been proposed in respect of 2023, and it remains the
board's intention to continue the Group's long-term trend to
increase, or least maintain, dividends for shareholders.
14 June 2024
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, Charlotte Cobb,
Francis Kerrigan