Indonesian palm oil producer MP Evans notched up record profits last year after another period of buoyant commodity prices.
The company saw operating profits rise 54% to $115.7m in the year to 31 December, a reflection of 13% higher palm oil prices and lower fertiliser prices. This offset a 1% fall in production.
Group revenue was up 15% to $352.8m.
Palm oil prices have proven volatile in recent years, hitting a high of almost $2,000 a tonne after Russia invaded Ukraine, before falling to around $700 per tonne in 2023.
They are now on the rise again, with MP Evans selling at an average price of $870 a tonne in the first two months of 2025.
The company said it was developing its strategy to produce more certified sustainable palm oil. Six of its own mills were in operation for all last year, with five of these accredited by the Roundtable on Sustainable Palm Oil.
This enabled the group to boost sustainable oil production from 62% of its total in 2023 to 69% in 2024.
“The group’s strategy, which will bring financial gains along with other benefits, is to continue increasing this proportion,” it said.
MP Evans plans to do this by increasing the efficiency of its existing planted areas, planting more trees in the estates it already owns, and by acquiring additional sites close to its existing milling facilities.
At its Musi Rawas site in South Sumatra, for example, 500 more hectares were planted to bring the total to 10,800. MP Evans expects to surpass its 11,000-hectare target in 2025, and said it will then continue planting.
“Every additional hectare planted will, in due course, provide additional valuable further crop to the group’s on-site mill, increasing the amount of sustainable output, reducing reliance on outside suppliers, and be margin enhancing,” the company said.
Chairman Peter Hadsley-Chaplin said: “I am delighted that the group is able to report such an excellent set of results for 2024. Alongside record profits and a 17% increase in dividends for the year, the group’s commitment to responsible operation is as strong as ever.
”Our planted hectarage increased once again and we continue to plant new areas to support future growth, whilst seeking further new suitable acquisitions.”
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