Last checked at 1 Dec 2020 07:00
M.P. EVANS GROUP PLC
("the Group" or "M.P. Evans")
2020 INVESTOR EVENT
RISING CROP AND CASH FLOWS WITH EMPHASIS ON TRACEABILITY
Introduction to the Group's project to certify independent smallholders: a significant step towards achieving its target of 100% certified sustainable palm oil
M.P. Evans Group PLC, a producer of sustainable Indonesian palm oil, is holding an investor event at 09:30 GMT today to present its progress in executing its strategy to deliver growth and profitability integrated with sustainable development.
The Group is on the threshold of a substantial increase in production, revenue and cash flow. The Group's strategy is delivering consistently increasing crop. In the ten months to October 2020, the Group processed 19% more fresh fruit bunches than in the same period in 2019. Palm-oil prices have also risen strongly in the last six months.
Crop and production information for the ten months ended 31 October 2020 | ||||
2020 | Increase | 2019 | ||
Tonnes | % | Tonnes | ||
Crop of fresh fruit bunches ("ffb") | ||||
Own crop | 586,600 | 7% | 548,900 | |
Scheme smallholder crop | 150,600 | 7% | 140,500 | |
Independent smallholder crop | 226,100 | 87% | 120,700 | |
963,300 | 19% | 810,100 | ||
Production* | ||||
Crude palm oil ("CPO") | 216,200 | 16% | 186,700 | |
Palm kernels ("PK") | 49,100 | 15% | 42,800 | |
*- figures include production from the Group's crop sold to third-party mills. | ||||
The M.P. Evans board and senior management will present the Group's pilot traceability programme for independent smallholders, a significant step towards attaining 100% production of certified sustainable palm oil. The event will also include a presentation from Emily Kunen, Global Responsible Sourcing Leader, Palm Oil & Seafood at Nestlé.
Sustainable production of palm oil is fully integrated into M.P. Evans' strategy, to focus on developing and operating majority-held plantations to produce sustainable Indonesian palm oil. Following the introduction of a smallholder certification scheme by the Roundtable on Sustainable Palm Oil, the Group intends to work with independent smallholders to achieve certification under the scheme to ensure that its mills receive a reliable supply of traceable crop.
The pilot traceability project, currently being rolled out at the Group's Bangka estates, incorporates training and assistance for independent smallholders to allow them to increase their crop, while also benefitting from the enhanced price premium offered for fully traceable sustainable palm oil. The Group's target is for all third-party ffb processed by the Group to be fully traceable.
Peter Hadsley-Chaplin, chairman of M.P. Evans, commented: "The rewards from the Group's US$500 million investment in sustainable Indonesian palm oil over the last 15 years are becoming visible. We have now set ourselves an ambitious challenge to certify all the independent smallholders from whom we buy, providing financial benefit to our suppliers and improving the traceability of our own supply chains. M.P. Evans firmly believes that traceability is the key to sustainability."
The event will be broadcast live and interested parties may register for the webcast in advance at https://webcasting.brrmedia.co.uk/broadcast/5fb273f9be1fd642a3ef1fcc.
An on-demand recording of the webcast will be available on the Group's website after the event at www.mpevans.co.uk .
1 December 2020
Enquiries:
M.P. Evans Group PLC | Telephone: 01892 516333 |
Peter Hadsley-Chaplin - Chairman | |
Tristan Price - Chief executive | |
Matthew Coulson - Finance director | |
Peel Hunt LLP (Nomad and joint broker) | Telephone: 020 7418 8900 |
Dan Webster | |
George Sellar | |
Andrew Clarke | |
finnCap (Joint broker) | Telephone: 020 7220 0500 |
Tim Redfern | |
Chris Raggett | |
Sunila de Silva | |
Hudson Sandler (Communications consultants) | Telephone: 020 7796 4133 |
Charlie Jack | |
Elfie Kent | |
Francis Kerrigan |