M.P. Evans Group has announced an extension of its share buyback program from Sept. 14 to Dec. 14 and a further increase in the budget by £2 million ($2.5 million). Despite reporting a decrease in first-half pretax profit due to a lower price environment, the London-listed palm-oil producer highlights its robust balance sheet, which allows for taking advantage of current market conditions and repurchasing shares at advantageous levels.
Decrease in Profits and Revenue
M.P. Evans Group reveals a decrease in pretax profit from $61.2 million to $22.3 million compared to the previous year. Additionally, revenue fell from $170.3 million to $134.5 million. The company attributes this decline mainly to the lower mill-gate price for group sales of both crude palm oil and palm kernels. Crude palm oil experienced a significant drop of 27% to $755 per metric ton.
Production and Dividend Announcement
Despite the challenges, M.P. Evans Group managed to achieve a 3% increase in total crude palm oil production, reaching 166,200 metric tons. Total crop processed rose by 2% to 721,100 metric tons. The board has declared an interim dividend of 12.5 pence per share, remaining flat compared to the previous year.
Positive Outlook for the Future
M.P. Evans Group continues to focus on increasing output, primarily through its own production facilities. As a result of these efforts, it confidently anticipates a productive and profitable 2023. At 0715 GMT, the company’s shares saw a rise of 4 pence, or 0.5%, reaching 770 pence.