MP Evans Group PLC (AIM:MPE), a major producer of sustainable palm oil in Indonesia, reported an 11% increase in crop harvest from its plantations for the first five months of 2025, ahead of its annual meeting in London.
The company harvested 521,400 tonnes of fresh fruit bunches, up from 468,000 tonnes during the same period in 2024.
This increase includes a significant rise in output from its directly owned estates, as well as contributions from associated smallholder schemes.
In the update, the group stated that it has significantly reduced the amount of palm fruit it purchases from independent suppliers, down 39% to 100,400 tonnes. This move aims to control costs and ensure the quality of fruit processed at its mills.
Despite a slightly lower overall amount of fruit processed compared to the previous year, at 621,800 tonnes against 631,400 tonnes in 2024, the company has maintained high production efficiency.
Its crude palm oil production was almost unchanged at 145,400 tonnes, with a marginal increase in its oil-extraction rate to 23.5%.
Palm oil prices remained strong, helping the MPE achieve higher average selling prices.
Crude palm oil prices averaged $876 per tonne at mill gates, a 14% rise from the $770 per tonne in the same period of 2024. Palm kernel prices saw a substantial jump, averaging $770 per tonne, nearly double last year's $425 per tonne.
In line with its growth strategy, the group recently acquired an additional 2,750 hectares near its Bumi Mas estate and mill for $34.2 million.
These newly acquired plantations, which are relatively young and expected to significantly boost future production, will be processed at the existing Bumi Mas mill.
The group said it continues to prioritise sustainability and expects to secure full Roundtable on Sustainable Palm Oil (RSPO) certification for its Bumi Mas mill later this year.
Currently, 76% of its total palm oil production meets RSPO standards, up from 69% for the whole of last year.
MPE has reiterated its commitment to maintaining or increasing dividends, with a proposed record dividend of 52.5p per share for 2024.