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MP Evans Group PLC (LSE:MPE) has announced a 20% increase in its interim dividend following a substantial rise in profits for the first half of the year. The company, which specializes in sustainable palm oil production, reported an operating profit of $41.6 million for the first six months of 2024, reflecting a 78% increase compared to the previous year.This growth is attributed to both higher production levels and increased palm oil prices. Total crop processed increased by 5%, while overall production rose by 6% to 177,000 tonnes. Notably, certified sustainable production surged by 24% to 119,500 tonnes, which now represents 68% of the group's total output, up from 58% the previous year. The average mill-gate crude palm oil (CPO) price was $771 per tonne, a 2% rise from the same period last year. Production costs also declined, continuing a trend observed in the latter half of 2023, with fertiliser costs falling from previous peaks. The total cost of production was $529 per tonne, down from $574 per tonne. The company anticipates further reductions in production costs during the second half of the year, driven by increased production and the seasonal pattern of fertiliser application. The board has declared an interim dividend of 15 pence per share, up from 12.5 pence a year ago. Chairman Peter Hadsley-Chaplin highlighted that the second half of the year has seen further strengthening of palm oil prices, positioning the group well for a strong performance throughout 2024. Additionally, MP Evans Group has expanded its holdings with the acquisition of approximately 1,700 hectares of high-quality planted areas from a minority shareholder, following a June agreement. This acquisition, valued at $9,000 per planted hectare, is significantly below the average independent valuation of $18,400 per hectare. Although this transaction will have a limited impact on the results for the first half of 2024, it is expected to enhance earnings for the remainder of the year and in future periods. The group also anticipates improvements from replanting and enhanced agronomic standards on recently acquired lands.
MP Evans Increases Dividend 20% Following Profit Surge
2 min read | September 16, 2024 09:06 AM BST | By
Team Kalkine Media
