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(Alliance News) - MP Evans Group PLC on Tuesday reported a drop in annual profit due to a fall in crude palm-oil prices.
Shares in the palm oil firm were 8.8% higher in London on Tuesday at 506.00 pence each.
In 2019, MP Evans recorded pretax profit of USD12.8 million, down from USD18.3 million in 2018.
Revenue was up, however, rising to USD119.3 million from USD108.6 million.
MP Evans declared a final dividend of 12.75 pence, giving it a total dividend for the year of 17.75p - unchanged on the year before.
Executive Chair Peter Hadsley-Chaplin said: "More than one million tonnes of crop processed, and an improved oil-extraction rate of 23.7%, did not translate into record profits in 2019 only on account of this year coinciding with a period of low crude palm-oil prices."
He continued: "Notwithstanding a background of rising demand, tight vegetable-oil supply and low stocks, the near-term picture is now clouded by the current Covid-19 pandemic. The board remains confident in the long-term demand for palm oil, and as a basic foodstuff, palm oil is well placed to be an early beneficiary of the economic rebound that is likely to occur as the pandemic recedes."
Shares in MP Evans closed 5.0% higher in London on Tuesday at 488.00 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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