MP Evans Group PLC (AIM:MPE), the sustainable Indonesian palm oil producer, increased crop processings by 7% to 1.6 million tonnes in 2023, with a notable 22% jump in crude palm oil (CPO) production to 362,100 tonnes.
The year also marked strategic growth for MP Evans, with the acquisition of more than 10,000 planted hectares, including surpassing the 10,000-hectare planting target at the Musi Rawas estate.
Financially, the group navigated a lower CPO price environment, with revenue at US$307.4 million and operating profit at US$75.3 million, down 6% and 26% respectively.
However, MP Evans maintained strong cash generation and continued its tradition of rewarding shareholders with a proposed final dividend of 32.5p per share, increasing the annual dividend 6% to 45p per share.
The board also extended the share buyback programme under which £2 million shares will be repurchased and struck off.
Commenting on the results, chairman Peter Hadsley-Chaplin stated: "The group has made further significant progress in delivering its strategy in 2023. We increased the amount of crop that was processed and, importantly, almost all that crop is processed in a group mill now that our sixth mill is up and running.
“We have secured a substantial increase in planted hectarage during the year, which will support our continuing growth, and we remain focused on opportunities for further sustainable development, both at our existing estates and as we continue to review additional acquisition prospects.”