MP Evans sees 'little effect' to trading from Covid-19 pandemic

MP stated that its controlled crop of fresh fruit bunches for the five months ended 31 May came to 342,100 tonnes, roughly 24% higher year-on-year.

Crops from smallholder co-operatives associated with its new projects also increased - up by 43% to 100,800 tonnes as overall, MP Evans' crops continued on "an upward trend" as a result of the young average age of its plantations.

The AIM-listed group produced the equivalent of 132,400 tonnes of crude palm oil during the first five months of 2021, up 25% year-on-year, including 104,800 tonnes in its own mills with the balance being the oil content of fresh fruit bunches sold by the firm to third-party mills.

MP also noted that the average price of crude palm oil over the first five months of the year was $1,127 per tonne, substantially higher than the $659 per tonne during the equivalent period in 2020. However, the introduction of an Indonesian export levy in December 2020 meant that the increase was only reflected to "a limited extent" in the price actually received by the firm at mill gate.

Nonetheless, in the period to the end 31 May, MP realised an average price at mill gate of $715 per tonne, compared with $550 per tonne in 2020, an increase of 30%.

"Milling capacity enables the group to maximise the margin it obtains by processing its own and scheme-smallholder crop, in addition to providing it with the opportunity to purchase additional crop from independent smallholders. The increasing maturity of its planted areas and the application of high operating standards means the board is confident in its ability to deliver crop growth which is the foundation for improving results and a rising dividend. In light of the strong performance achieved to date, it remains the board's intention to recommend a dividend of 30p per share in respect of 2021," concluded MP Evans.

As of 0925 BST, MP Evans shares were up 2.46% at 750.0p.