M.P. Evans Group PLC (MPE) Earnings Call Transcript & Summary

We're pleased to announce our results for the year ended 31st of December 2025, which demonstrate another year of strong progress for M.P. Evans. During 2025, the group delivered a record financial performance. Revenue increased to $371 million, gross profit to $142 million and overall profit for the year increased by 25% to $113 million. As a result, earnings per share increased strongly, and the Board is recommending a final dividend of 42p per share, bringing total dividends for 2025 up to 60p, an increase of 14% on 2024. A key driver of this performance was the market pricing for both crude palm oil and palm kernels, which remained strong during the year. At the same time, we continued to improve the group's crop mix. We processed more of our own crop than ever before and continued to reduce the amount purchased from outside suppliers. That matters because our own crop is typically higher quality, more sustainable, and lower cost, which supports stronger margins. Operationally, this was also an important year. For the first time in the group's history, the harvest from group-owned areas exceeded one million tons of fresh fruit bunches. Including scheme smallholder areas, total crop harvested rose to 1.3 million tonnes. Across our six mills, the average oil extraction rate improved to 23.5%, reflecting the quality of the crop being processed and the efficiency of our operations. We also continued to make progress on sustainability. The production of certified sustainable crude palm oil increased to 275,000 tonnes during the year. That means 80% of the output from group mills was certified sustainable. This is an important part of our strategy and how we create long-term value responsibly. Alongside this operational progress, we continued to expand during the year in accordance with our strategic goals. In July, we acquired more than 3,000 planted hectares close to our Bumi Mas estate in East Kalimantan. Together with further planting at our existing estates, this helped to take the total planted area managed by the group to more than 70,000 hectares by the end of 2025, supporting future growth in crop and production. The group's financial position remains very strong. We generated substantial operating cash during the year, repaid all outstanding borrowings, and ended 2025 debt-free with net cash of $87 million. That gives us the flexibility to continue investing in growth while also maintaining our progressive approach to dividends. Looking ahead, the new year has started really well. Crop levels have continued to increase across our Indonesian estates. Recently acquired areas are performing encouragingly, and crude palm oil pricing has remained strong, with some sales tenders exceeding $900 per tonne in the early part of 2026. With a high-quality asset base, efficient operations, a strong balance sheet, and clear opportunities for further growth, the board remains confident in the group's prospects. Finally, none of these results, nor the group's continuing development and growth, would have been possible without our more than 12,000 strong workforce, whether here in the UK, at our Jakarta office, or across our operating locations in Indonesia. I would like to thank all of them for their hard work, and I look forward to another exciting year in 2026.