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(Alliance News) - MP Evans Group PLC on Friday celebrated annual output growth and said it has resumed its share buyback programme.
The Kent, England-based palm oil producer with operations in Indonesia said the crop of fresh fruit bunches increased by 6.7% to 1.6 million tonnes from 1.5 million a year ago.
Its own crops rose 1.9% to 922,900 tonnes from 905,400 in 2022, while scheme-smallholder crops grew 4.8% to 278,500 from 265,700 a year ago. Meanwhile, independent crops purchased jumped by 24% to 421,500 tonnes from 340,600.
Production was also positive, with crude palm oil output rising 11% to 378,500 tonnes from 341,700 last tear. Production of palm kernels was 9.2% higher at 80,600 tonnes from 73,800.
Additionally, MP Evans reported a 20% increase in its planted hectarage during the year.
The palm oil producer added that it had received an average mill-gate price for its CPO of USD729 per tonne in 2023, approximately 15% lower than the USD854 in the previous year. MP Evans continues to receive mill-gate prices in excess of US700 per tonne, it said.
As of 2023, the company said it has six palm oil mills, with 95% of the total reported crop processed in a group mill.
"With the exception of the newest mill, at Musi Rawas, all group mills are able to sell CPO as certified sustainable oil, and that mill is awaiting certification having recently completed its sustainability audit," it said.
Chair Peter Hadsley-Chaplin said: "The group made another stride forward in 2023, with crop and production both increasing. Importantly, following a period of significant investment, almost all crops are now processed in group milling facilities We are starting to see the benefits in increasing extraction rates, and this will provide further support to what will be a strong result for 2023. Looking to the future, the group has delivered on its stated aim of adding further hectarage close to its existing projects, which will support further growth into 2024 and beyond."
Separately on Friday, MP Evans said it had resumed its share buyback programme after its expiry in December. The programme has a budget of GBP1.5 million for an initial two-month term.
"The board maintains the view that its overall business and its assets are currently undervalued, with the current enterprise value being below the independent valuation of its assets," it said.
In order to implement the programme, the firm has entered an agreement with Cavendish Capital Markets Ltd for it to independently carry out the on-market purchases.
Shares in MP Evans rose 2.7% to 750.00 pence each in London on Friday morning.
By Sabrina Penty, Alliance News reporter
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