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MP Evans Group PLC - producer of palm oil in Indonesia - Pretax profit drops by nearly two thirds to USD22.3 million in the six months that ended June 30 from USD61.2 million a year before. Revenue declines by 21% to USD134.5 million from USD170.3 million, and cost of sales rises to USD111.3 million from USD105.5 million. Production of crude palm oil increases by 3.4% to 166,200 tonnes from 160,800 tonnes a year before, but the mill-gate CPO price falls by 27% to USD755 per tonne from USD1,035.
However, MP Evans maintains its interim dividend at 12.5 pence per share, and it extends its share buyback programme by three months to December 14 and doubles its size to GBP4 million from GBP2 million. So far in the programme, the company has bought back GBP1.4 million in shares at an average price of GBP7.24 per share.
Looking ahead, MP Evans says it achieved an 18% annual increase in the total crop processed in July and August. It also is expanding its own planted area in Indonesia, agreeing to buy a further 8,500 planted hectares in East Kalimantan. Chair Peter Hadsley-Chaplin says MP Evans is "in a strong position to deliver a productive and profitable 2023 and bodes well for its longer-term prosperity".
Current stock price: 750.00p, down 2.1% in London midday Monday
12-month change: down 8.3%
By Tom Waite, Alliance News editor
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