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(Sharecast News) - MP Evans Group reported higher harvested crop from its own and smallholder-managed estates in 2025 on Thursday, supported by maturing plantations and recent acquisitions, although total fresh fruit bunch volumes declined due to a deliberate reduction in lower-margin third-party purchases.
In a crop and production update for the year ended 31 December, the AIM-traded Indonesian palm oil producer said fresh fruit bunch output from its own estates rose 8% to 1.01 million tonnes, while scheme smallholder crops increased 5% to 299,500 tonnes.
Independent crops purchased for processing fell sharply by 41% to 229,200 tonnes, reflecting the group's strategy to prioritise its own higher-margin harvest.
Total crop processed declined 4% year-on-year to 1.54 million tonnes.
Crude palm oil production slipped 3% to 360,800 tonnes, while palm kernel output also fell 3% to 78,900 tonnes, including production from group crops sold to third-party mills.
The company said yields benefited from younger areas continuing to mature, contributing to improved performance across managed estates.
Pricing remained supportive during the year.
MP Evans achieved an average mill-gate price of $866 per tonne for crude palm oil in 2025, up 5% from $823 a year earlier, while palm kernel prices averaged $748 per tonne, 42% higher than in 2024.
The company said the strong pricing environment had a positive impact on revenue and profitability, as outlined in its November trading update, and added that prices in early 2026 remained robust, with crude palm oil being tendered at around $850 per tonne.
It said flooding at its Simpang Kiri estate in Aceh did not have a material impact on crop, production or costs during 2025, with restoration work progressing as planned.
The firm also reiterated its commitment to sustainable operations, pointing to its recently published ESG report.
"The group has been able to achieve impressive operational results in 2025, with a clear focus on processing the Group's high-quality crop through its own milling facilities," said chairman Peter Hadsley-Chaplin.
"Along with a supportive price environment, the Group will deliver excellent results for 2025, ensuring that, as a responsible palm-oil producer focused on excellence, it can continue to pursue its strategic priorities of continuing growth and an increasing yield."
At 1214 GMT, shares in MP Evans Group were up 2.8% at 1,285p.
Reporting by Josh White for Sharecast.com.