M.P. Evans Group (MPE) H2 2024 earnings summary

Executive summary

• Delivered record-breaking financial results for 2024, with substantial increases in revenue, gross profit, and EPS, driven by higher CPO prices and tight cost control.

• Maintained stable production levels despite weather challenges in Indonesia, with 1.6 million tonnes processed and 96% in certified mills.

• Focused on sustainability, increasing certified output to 69% and expanding conservation areas to 8,000 hectares.

• Advanced strategic acquisitions and expansion of planted hectarage to support future growth.

• Continued publication of TCFD and ESG reports, achieving a 36% reduction in emissions since 2021.

Financial highlights

• Revenue increased by 15% year-over-year to $352.8 million, driven by a 13% higher average CPO price and strong PK pricing.

• Gross profit rose by nearly 50% to $116.6 million; operating profit up 54% to $115.7 million.

• Earnings per share surged 66% to 129.6p, supporting a 17% rise in the final dividend to 52.5p.

• Net profit for the year was $90.6 million, up 61% compared to 2023.

• Net funds at year-end were $46.4 million, reversing a net debt position of $14.8 million in 2023.

Outlook and guidance

• Strong start to 2025, with own crop up 5% and scheme smallholder crop up 16% compared to early 2024.

• CPO pricing remains healthy, with early 2025 tenders at $870/ton and analyst forecasts for the year between $750–800/ton.

• Continued planting and acquisition plans to further increase planted area and future output.

• CapEx expected to fall in future years; borrowings to be fully repaid by mid-2025.

• No need for new mills in the near term due to surplus capacity.