MP Evans Group PLC (AIM:MPE) has posted record profits and a strong balance sheet after a year of buoyant palm oil prices and tight cost control lifted its results to new highs.
For the 12 months ended December 31, the London-listed group, which produces certified sustainable palm oil in Indonesia, said revenue jumped to $352.8 million while operating profit was up 54% to $115.7 million.
Earnings per share rose by two-thirds to 129.6p. Operating cash generation hit $152.6 million, allowing the group to return more to shareholders and eliminate all net debt, ending the year with $46.4 million in net cash.
The board declared a full-year dividend of 52.5p, up 17% on last year, and continued its buyback programme, cancelling over 1.1 million shares.
The financial performance was supported by a 13% rise in average crude palm oil prices to $823 a tonne in 2024.
Chairman Peter Hadsley-Chaplin said: "Alongside record profits and a 17% increase in dividends for the year, the group's commitment to responsible operation is as strong as ever.
"Our planted hectarage increased once again and we continue to plant new areas to support future growth, whilst seeking further new suitable acquisitions."
MP Evans now operates six mills across Sumatra and East Kalimantan, processing 96% of its 1.6 million tonnes of crop internally.
The focus is increasingly on own-grown and scheme-smallholder crops, with the group reducing reliance on third-party suppliers to improve margins and quality. It is also scaling up planting, both on existing estates and newly acquired land.
The outlook for 2025 is upbeat. In the first two months of the year, the group saw higher cropping from its own areas and from associated smallholders, while prices remained firm.
Average prices so far this year have been $870 a tonne, above the 2024 average. Management is pressing ahead with more planting and said it is actively exploring further acquisition opportunities.
The company sees demand for sustainable palm oil remaining strong and believes its high-yield, low-cost model puts it in a good position for long-term growth. The board described the current prospects as “very positive.”