MP Evans Group PLC (AIM:MPE) said price of crude palm oil (CPO), its main product, have been higher than expected in the second half of the year, which will have a beneficial impact on the group's results for 2024.
Crop processing this year will be in line with forecasts and similar to last year’s at 1.6 million tonnes, said the statement but rather than fall, as had been expected, prices of CPO have risen further.
Average prices have risen from US$777 per tonne for the first eight months of the year to US$800 for the first ten months with some sales in November exceeding US$950 a tonne.
Shortages of vegetable oil supplies are behind the rise, said MP Evans, and this favourable pricing environment means this year revenues will be higher than expected.
Combined with tight cost control, there will be a more significant impact on anticipated profitability, said the statement.