The Indonesian palm oil producer says crop volumes are up 10% in early 2026, with selling prices close to last year's record levels
MP Evans Group PLC (AIM:MPE), the AIM-listed Indonesian palm oil producer, has reported a strong start to 2026, with crop volumes up 10% in the first two months of the year compared with the same period in 2025, extending a trend that emerged in the latter part of last year.
Average selling prices for crude palm oil (CPO) have remained close to their 2025 levels, with some tenders exceeding $900 per tonne in the early weeks of the year and an average of approximately US$860 per tonne across January and February.
The group also flagged that renewed conflict in the Middle East could push mineral oil prices higher, potentially lifting demand for vegetable oil alternatives such as CPO, though it cautioned that fuel and fertiliser costs might also rise as a result.
The current trading update accompanied full-year results for 2025 that the company described as another record year.
Gross profit rose 22% to $142.2 million (2024: $116.6 million), driven by higher CPO prices, which averaged $866 per tonne over the year compared with $823 per tonne in 2024, and by a deliberate shift towards processing more of the group's own higher-quality crop rather than buying in from independent suppliers.
Revenue increased to $371 million (2024: $352.8 million) and earnings per share rose to 161.3 pence (2024: 129.6 pence).
The board is recommending a final dividend of 42p per share, bringing the total for the year to 60 pence per share, up from 52.5 pence in 2024, and extending the group's record of maintaining or increasing its dividend to 35 consecutive years.
MP Evans expanded its planted estate by almost 5,000 hectares during 2025. This took the total under management to more than 70,000 hectares, following an acquisition of more than 3,000 planted hectares adjacent to its Bumi Mas operation in East Kalimantan and further planting at its Musi Rawas and Kota Bangun estates.
Certified sustainable CPO production rose to 275,000 tonnes, representing 80% of output from the group's own mills.
Chairman Peter Hadsley-Chaplin said the group was confident in its ability to maintain a progressive dividend and that its overall prospects remained secure.