MP Evans hails good half-year but warns of impact of lower rainfall

MP Evans Group PLC on Monday boosted its half-year dividend as revenue and profit grew amid higher production levels.

The Tunbridge Wells, England-based company, which produces palm oil in Indonesia, said pretax profit jumped 25% to USD78.6 million in the first half of 2026 from USD63.0 million the year prior, while revenue improved 9.4% to USD196.3 million from USD179.4 million. Gross margin increased to 40% from 35%.

Chair Peter Hadsley-Chaplin said the first half of 2026 has been "particularly encouraging" for the group, with increases in both crop harvested and extraction rates in its mills.

"Our focus on efficiency helps us to push down unit costs, and our gross margin has improved again, leading to another increase in earnings. As a result, the board is confident in taking another step in the group's progressive approach to dividends," he added.

The firm lifted its interim dividend by 39% to 25 pence per share from 18p a year before.

Crude palm oil output during the first half improved 11% to 192,300 tonnes, MP Evans said, while crop harvested rose 14% to 705,400 tonnes.

"The trend of increasing crop has continued as we move into the second half of the year. During the two months to August 2026, the total crop harvested from areas managed by the group was 259,700 tonnes a sizeable increase of 24% on the equivalent period in 2025," the firm said.

However, it noted some "changes in weather patterns" in Indonesia due to El Nino conditions in the Pacific Ocean has resulted in lower-than-normal rainfall levels which "may lead to a reduction in production levels across Indonesia and Malaysia".

MP Evans added that any changes to production levels in Indonesia and Malaysia may not be noticed until 2027 and said that should there be a fall in overall production, this may be balanced by an increase in commodity pricing.

"Management will continue to monitor the situation," it said.

Shares in MP Evans were up 4.5% to 1,970.00p each in London on Monday.

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