M.P. Evans Sees 14% Surge in Fresh Fruit Bunch Harvest in H1 2026 Fueled by Robust Commodity Prices

Robust Production Growth Across Indonesian Estates

M.P. Evans harvested 705,400 tonnes of fresh fruit bunches in H1 2026, marking a 14% increase from 619,100 tonnes in H1 2025. This rise reflects widespread crop improvements across nearly all estates, demonstrating operational consistency and favorable growing conditions across the company’s five Indonesian provinces.

Excluding the newly acquired Bumi Mas plantations added in H2 2025, own crop harvests grew 9% year-on-year, highlighting strong performance at established sites. Own crop production reached 537,500 tonnes (up 13%), while scheme-smallholder crops increased 15% to 167,900 tonnes. Independent crop purchases fell 22% to 92,800 tonnes as the company reduced reliance on third-party suppliers. Total fresh fruit bunch intake, including all sources, rose 8% to 798,200 tonnes from 737,700 tonnes in H1 2025.

Increased Crude Palm Oil and Palm Kernel Production Reflects Enhanced Extraction Efficiency

Crude palm oil production expanded 11% to 192,300 tonnes in H1 2026, with palm kernel output also rising 11% to 42,100 tonnes. M.P. Evans reported improved extraction rates for both products compared to the prior year, indicating mills are operating at peak efficiency and converting feedstock with minimal waste.

The 22% reduction in independent crop purchases aligns with the company’s strategy to prioritize higher-quality, own-grown feedstock, improving cost structure and input quality. This vertical integration supports operational excellence and margin enhancement as production from acquired estates like Bumi Mas scales.

Stable and Strengthened Commodity Pricing in H1 2026

During H1 2026, M.P. Evans achieved an average mill-gate price of US$873 per tonne for crude palm oil, slightly up from US$868 per tonne in H1 2025. Palm kernel prices were notably stronger, averaging US$813 per tonne, a 9% increase from US$747 per tonne the previous year. The sustained strength in palm kernel pricing reflects solid global demand across food, cosmetic, and industrial sectors.

The pricing stability for crude palm oil and the robust palm kernel prices underpin the company’s financial outlook, with both commodities representing key revenue streams. The firm’s market assessment confirms that global vegetable oil demand has grown steadily over decades and is expected to continue rising, supporting a positive medium-term sector outlook.

Early Yield Contributions from Bumi Mas Acquisition

The acquisition of Bumi Mas plantation areas in H2 2025 has contributed meaningfully to the group’s production in H1 2026. The company highlighted encouraging yields from these new areas, which accounted for approximately 5 percentage points of the overall 14% increase in fresh fruit bunch harvests. This acquisition expands M.P. Evans’ production base and leverages its operational expertise and milling infrastructure across a broader estate footprint.

Successful integration and rapid production ramp-up at Bumi Mas demonstrate management’s capability to execute acquisition-driven growth. The company now operates across five Indonesian provinces, enhancing geographic diversification and resilience against localized risks.

Sustainability Certification and RSPO Membership Strengthen Market Position

M.P. Evans maintains certification as a sustainable crude palm oil producer and is a member of the Roundtable on Sustainable Palm Oil (RSPO), adhering to strict social and environmental standards. The company also holds the London Stock Exchange’s Green Economy Mark, recognizing its sustainable practices and contribution to the green economy.

These credentials are critical for long-term competitiveness as corporate sustainability mandates and consumer preferences increasingly favor responsibly sourced palm oil. RSPO membership and the Green Economy Mark provide third-party validation, reduce reputational risks, and open access to premium markets seeking certified sustainable suppliers. This alignment supports pricing power and customer retention amid growing ESG considerations.

Favorable Global Vegetable Oil Demand Trends Support Sector Growth

M.P. Evans’ strategy reflects confidence in the sustained growth of global vegetable oil consumption, driven by rising populations and incomes. Palm oil remains the largest and most efficient vegetable oil by volume and trade, benefiting from superior yields and lower production costs. These factors are increasingly important as agricultural capacity faces land-use and climate challenges.

The company emphasizes operational excellence and high-quality estates and mills as key to delivering increasing returns. The H1 2026 results—with production gains, improved extraction rates, and stable pricing—indicate effective execution within a supportive demand environment. Investors should consider that the company’s growth depends on continued vegetable oil demand and the potential impact of alternative oil developments.

Strategic Reduction in Independent Crop Purchases Enhances Efficiency

A key strategic development in H1 2026 is M.P. Evans’ 22% reduction in independent crop purchases to 92,800 tonnes, reflecting growing own-estate harvests. This vertical integration improves cost efficiency, supply chain control, and input quality by managing feedstock from harvest to mill intake.

As own crop production expands—through acquisitions and yield improvements—the company gains operational leverage, supporting margin growth and product consistency. This trend is expected to continue, demonstrating management’s confidence in sustainable production growth.

Extraction Rate Improvements Boost Output and Margins

M.P. Evans reported enhanced extraction rates for crude palm oil and palm kernel compared to H1 2025, indicating more efficient conversion of fresh fruit bunches into finished products. These improvements likely result from optimized milling processes, better equipment, improved feedstock quality, and enhanced operational practices.

Extraction rate gains contribute to margin expansion independently of commodity price changes by increasing product output per tonne of feedstock without proportional cost increases. The company’s ability to grow feedstock volumes while improving extraction efficiency highlights disciplined management and capital investment, supporting claims of operational excellence.

Medium-Term Growth and Capital Deployment Focused on Sustainable Expansion

M.P. Evans’ H1 2026 results reflect disciplined, acquisition-driven growth centered on expanding production from high-quality Indonesian estates. The Bumi Mas acquisition, successfully integrated and contributing to production, showcases effective capital deployment. The underlying 9% growth in own-crop harvests (excluding Bumi Mas) underscores operational excellence and likely investments in estate management and agronomy.

The company’s strategy prioritizes long-term sustainable Indonesian palm oil production, supported by rising global vegetable oil demand and palm oil’s efficiency advantages. RSPO membership and the LSE Green Economy Mark provide competitive differentiation in a market increasingly influenced by sustainability criteria. Headquartered in the UK and traded on the AIM market, M.P. Evans offers UK and international investors exposure to sustainably produced agricultural commodities. Investors should consider execution risks related to acquisitions, commodity price volatility, and regulatory conditions in Indonesian provinces.