MP Evans Group PLC (AIM:MPE), a producer of sustainable palm oil in Indonesia, closed 2024 with stable production levels and a boost in prices that helped drive profitability, despite challenging weather conditions earlier in the year.
The group processed 1.6 million tonnes of fresh fruit bunches, nearly matching last year’s total of 1.62 million tonnes.
While crops from independent suppliers dropped by 8%, harvests from the group’s own plantations and scheme-smallholder farms edged up by 2% and 3%, respectively. Crude palm oil output fell slightly to 372,200 tonnes, down 2% year-on-year.
Palm oil prices provided a bright spot, with the average mill-gate price for crude palm oil jumping 13% to $823 per tonne compared to $729 in 2023. Prices surged even higher towards the end of 2024, reaching $950 per tonne in the final months. Although prices have cooled slightly in early 2025, they remain above the 2024 average.
MPE continues to focus on sustainability, with all six of its mills now producing certified sustainable palm oil. The group also received an improved ESG (environmental, social, and governance) transparency score of 88.9% in November 2024, as assessed by the Zoological Society of London.
The company’s strong financial performance will allowed the company to maintain its long-standing policy of growing or sustaining its annual dividend — a track record that spans more than 30 years.
MPE's chair, Peter Hadsley-Chaplin, said: "The group has, once again, delivered excellent operational results in 2024, notwithstanding some weather-related challenges during the year.
"Combining this with the robust price environment, the group will deliver a strong result for 2024, enabling it, as a responsible palm oil producer focused on excellence, to recommit to its strategic priorities to deliver continuing growth and an increasing yield."