Article

MP Evans Group PLC reported a year where stronger palm oil prices mitigated lower production volumes. Average crude palm oil (CPO) mill-gate prices were US$866 per tonne, up 5% year-on-year. Palm kernel prices increased by 42% to US$748 per tonne.

CPO production declined by 3% to 360,800 tonnes, partly due to a strategy to reduce third-party fresh fruit bunches (FFB), which fell by 41%. Analysts noted that lower production was offset by higher prices, leaving earnings forecasts largely unchanged.

The company's milling capacity improvements allowed it to process most of its own crop, with an EBIT margin forecast rising to 37%. Free cash flow was estimated at US$118.4 million, supporting dividends and debt repayment, resulting in a net cash position. Looking ahead, analysts remain cautiously optimistic, citing ongoing biofuel demand and planting limits as positive factors for palm oil prices.