M.P. Evans Group PLC reported first-half 2026 results on September 15, 2026, with profit for the period up 25% to $62.1 million and operating profit up 26% to $78.1 million. Gross profit rose 25% to $78.9 million, while earnings per share increased 21% to 86.5 pence. Total revenue grew 9% to $196.3 million, comprising $156.8 million from crude palm oil, $32.8 million from palm kernel and $6.7 million from fresh fruit bunches. The interim dividend was raised 39% to 25 pence per share, extending a 36-year record of maintaining or increasing dividends. Management described the presentation theme as 'Deploying strategy, delivering results' and referred to the performance as record-breaking.
The share price rose 6.11% to $2,170, trading near its 52-week high of $2,260. The company said its balance sheet remained debt-free, with net cash of $113.5 million, up from an opening balance of $87.5 million. Cash from operations reached $91.7 million, equivalent to 117% cash conversion. Capital allocation included $29.6 million for dividends, $10.7 million for capital expenditure, $21.8 million for taxes and $3.2 million for share buybacks. Return on equity was 20% over the last twelve months, and the company cited a price-to-earnings ratio of 12.4.
Cost efficiency improved during the period. Group cost per tonne for own crop fell 8% to $409, from $446 in the first half of 2025, helped by a foreign exchange tailwind of $12 per tonne. Total cost per tonne across all sources declined 7% to $514, from $553. Gross margin expanded to 40%, from 35% in the prior-year period. The company attributed profit growth to sales price increases of $4.2 million, volume growth of $6.0 million, improved mix of $2.2 million, acquisitions of $3.7 million and foreign exchange effects of $2.0 million, partly offset by cost increases of $2.3 million.
Operationally, group harvest increased 14% to 705,400 tonnes, compared with 619,100 tonnes in the first half of 2025. Independent crop purchases were reduced by 22% to 92,800 tonnes, while own crop represented 88% of total mill throughput. Crude palm oil production rose 11% to 192,300 tonnes, and the oil extraction rate improved to 24.2%, from 23.5% a year earlier. The company said 97% of group crude palm oil production was achieved in its own mills, and certified sustainable crude palm oil increased to 79% of total output, from 76% in 2025. Palm kernel extraction improved to 5.3%, with a 9% price increase.
Average mill-gate pricing for group crude palm oil was $873 per tonne, up 1% from $868 in the first half of 2025. Year-to-date tender pricing through August stood at $868 per tonne for crude palm oil and $799 per tonne for palm kernel.
The company also outlined its KWB acquisition and investment plans. The initial land outlay was $2 million, with total expected investment of $20 million to $25 million, or $7,000 to $8,000 per planted hectare. Following the acquisition, total planted hectarage is expected to increase to approximately 74,000 hectares. The East Kalimantan estate, acquired in November 2023 and comprising 8,350 hectares, delivered yield improvements of 91% over three years. Yields per mature hectare rose from 9 tonnes in 2024 to 13.1 tonnes in 2025, with a forecast of 17.2 tonnes in 2026, and the estate added 63,000 tonnes of own crop processed in 2025.
In an eight-month trading update through August 31, 2026, own crops increased 15% to 737,100 tonnes, scheme-smallholder crops rose 20% to 228,000 tonnes and total crop harvested grew 16% to 965,100 tonnes. Independent crop purchases fell 24% to 123,300 tonnes.
The company noted that Indonesia accounts for 58% of global palm oil production, while Malaysia contributes 24%. It also said palm oil produces more than 35% of global vegetable oil on less than 10% of the land used for all vegetable oil crops, and that M.P. Evans achieves yields of 5.0 tonnes per hectare compared with an industry standard of 3.4 tonnes per hectare.
