- M. P. Evans Group
- 17 January 2022 12:13:39
Source: Sharecast
The AIM-traded firm said its own crops of fresh fruit bunches were 12% higher at 809,700 tonnes, while scheme smallholder crops were ahead 19% at 229,300 tonnes and independent smallholder crops grew by 13% to 327,200 tonnes.
That made for total crops of fresh fruit bunches of 1.37 million tonnes, up 13% on the prior year.
All of the group's estates operated without interruption throughout the year, the company reported, with Covid-19 safety measures in place.
During the year, MP Evans achieved an average mill-gate price for its crude palm oil of $810 per tonne, up 37% from the $591 per tonne recorded in 2020.
Prices for palm kernels averaged $533 per tonne at the mill gate, which was up from the prior year’s figure of $316.
The company said crude palm oil pricing was still strong as it moved into 2022, with mill-gate prices achieved at the start of the year standing at around $1,000 per tonne.
It said it remained “committed” to the production of certified sustainable palm oil, reporting that it received total sustainability premia of $4.3m related to the sale of its certified sustainable output, which was “significantly higher” than the $2.6m received in 2020.
Over the course of the year, the group said it was “extremely” cash generative, enabling it to reduce net debt to less than $10m at year-end from $78.1m at the start of the year.
The board said that put the company in an even stronger position to proceed with its stated strategy of acquiring additional land close to its existing estates, with a number of potential acquisitions currently under review.
Considering the reported crop growth, the increase in crude palm oil prices observed in the year, and the ongoing cash generation, the board said it intended to recommend a total normal dividend of at least 30p per share for 2021, including the 10p interim dividend already paid.
In addition, following the successful completion of the Bertam Estate land disposal announced in October, the board announced a special dividend of 5p per share, to be paid on 11 February to shareholders on the register on 28 January.
“The group has achieved a significant increase in crop processed which, in conjunction with the strong palm oil market, will form the basis for an excellent result for the year,” said executive chairman Peter Hadsley-Chaplin.
“We anticipate further crop increases from the group's first-class estates and, with current crude palm oil sales at prices approximately $200 per tonne above the 2021 average, 2022 is already off to a very encouraging start.”
At 1110 GMT, shares in MP Evans Group were up 2.55% at 843.96p.
