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(Alliance News) - Dekel Agri-Vision PLC on Thursday reported a rise in interim profit despite falling revenue as the palm oil price jumped.
Dekel Agri-Vision is a palm oil and cashew grower in West Africa.
Pretax profit in the six months to June 30 rose by 25% to EUR2.5 million from EUR2.0 million a year prior. Revenue however fell by 9.3% to EUR19.7 million from EUR21.7 million. Cost of revenue narrowed to EUR14.7 million from EUR16.8 million. Finance costs decreased to EUR881,000 from EUR1.1 million.
Average realised crude palm oil prices surged 24% to EUR1,013 per tonne from EUR817 a year ago. However, crude palm oil production fell by 36% and sales dropped by 31%.
The loss from its crude palm oil business was more than offset by Palm kernel oil however, whose price skyrocketed by 84% to EUR1,454 per tonne from EUR792. Palm kernel oil production fell by 25%, far less than the price increase.
The fall in production is due to lower fresh fruit bunch volumes, Dekel explained.
Regarding potential future payouts, Chair Andrew Tillery stated the firm will: "At the appropriate time, look to recommence a dividend programme, thereby providing shareholders with a yield as well as capital growth."
Looking ahead, Executive Director Lincoln Moore said: "The cashew operation is now closing in on the completion of full commissioning and is well placed to become a significant contributor to the group in 2023. With reasons to be optimistic about the performance of both the palm oil operation and the cashew operation, we are excited about the potential to grow the company's sales and financial performance in the future."
Dekel Agri-Vision shares were 10% higher at 3.20 pence each in London on Thursday morning.
By Tom Budszus; tombudszus@alliancenews.com
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