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MP Evans Group PLC - producer of palm oil in Indonesia - Pretax profit drops by nearly two thirds to $22.3 million in the six months that ended June 30 from $61.2 million a year before. Revenue declines by 21% to $134.5 million from $170.3 million, and cost of sales rises to $111.3 million from $105.5 million. Production of crude palm oil increases by 3.4% to 166,200 tonnes from 160,800 tonnes a year before, but the mill-gate CPO price falls by 27% to $755 per tonne from $1,035.
However, MP Evans maintains its interim dividend at 12.5 pence per share, and it extends its share buyback programme by three months to December 14 and doubles its size to £4 million from £2 million. So far in the programme, the company has bought back £1.4 million in shares at an average price of £7.24 per share.
Looking ahead, MP Evans says it achieved an 18% annual increase in the total crop processed in July and August. It also is expanding its own planted area in Indonesia, agreeing to buy a further 8,500 planted hectares in East Kalimantan. Chair Peter Hadsley-Chaplin says MP Evans is ‘in a strong position to deliver a productive and profitable 2023 and bodes well for its longer-term prosperity’.
Current stock price: 750.00p, down 2.1% in London midday Monday
12-month change: down 8.3%
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