MP Evans Group PLC (AIM:MPE) said production edged up in its latest half year though lower palm oil prices and higher costs affected earnings.
Palm oil production rose 3% to166,200 tonnes in the half year to end June 2023, with 2% more crop processed at 721,100t but a 27% drop in the crude palm oil price meant revenues were 20% lower than a year ago at US$134.5 million.
That fed through into a drop in profits of almost two-thirds to US$17.8m, though the dividend was maintained at 12.5p.
Evans, which has plantations in Indonesia, said production has picked up in the second half with around 318,800t processed in the two months to August.
Peter Hadsley-Chaplin, chairman, said: "The group continues to increase output, notably from its own production facilities, following the commissioning of the Musi Rawas mill this February.
“We are delighted to be reporting further strategic increases in planted hectarage, both at Simpang Kiri earlier this year, and the recently announced agreement to acquire over 8,000 planted hectares in East Kalimantan.
“These developments, along with increasing cropping levels, put the group in a strong position to deliver a productive and profitable 2023 and bodes well for its longer-term prosperity."