M.P.EVANS GROUP PLC
M.P.Evans Group PLC (“MP Evans”, “the Group” or “the Company”), the producer of sustainable Indonesian palm oil, announces its results for the year ended 31 December 2021.
The Group's 2021 annual report is available on its website at www.mpevans.co.uk .
HIGHLIGHTS
Financial
− Profit for the year up by 314% to US$91.8 million (2020 US$22.2 million)
− Operating profit up by 266% to US$114.6 million (2020 US$31.3 million)
− Average mill-gate price for Group CPO up by 37% to US$810 per tonne (US$591 per tonne)
− Sustainability premia increased to US$4.3 million (2020 US$2.6 million)
− Reduction in net debt to US$5.4 million (2020 US$78.1 million)
− Basic EPS up by 296% to 115.6 pence (2020 – 29.2 pence)
− 59% increase in normal dividend for the year with proposed final dividend of 25p per share (2020 – 17p per share)
− Special dividend of 5p per share paid on Malaysian land sale
Operational
− Total crop processed up 13% to 1.4 million tonnes
− 100% of Group and scheme-smallholder crop grown to sustainability standards
− 55% of total output currently certified sustainable pending formal certification of newer mills
− Group crops up to 810,000 tonnes, a 12% increase
− Planting at youngest estate, Musi Rawas, exceeded 9,000 hectares
− Crude-palm-oil production up 15% to 313,000 tonnes
− New Group mill at Bumi Mas began production in August 2021
Group value
− Group equity value of £12.65 per share at 31 December 2021
Current trading
− Seasonal, 10%, downturn in crop in early 2022: recovery to long-term growth pathway expected as year progresses
− Significant increase in palm-oil price in same period, average mill-gate US$1,050
− Strength in price partly attributable to restricted vegetable oil supply due to tragic events in Ukraine
− Year-end net debt eliminated: net cash US$27 million by mid-March
Commenting on the results, Peter Hadsley-Chaplin, executive chairman of MP Evans , said: “2021 has been an excellent year for the Group. Crop and production have risen further in line with our long-term strategic plans, whilst the palm-oil market has gone from strength to strength. Profit and cash generation have risen sharply, with retained profit of US$91.8 million, and the Group's net debt almost wholly eliminated by the year end.
The Group recently paid a special dividend of 5p per share in relation to the completed sale of the Group's Bertam Estate in Malaysia and the board now recommends a final dividend of 25p per share, bringing total normal dividends in respect of 2021 up to 35p per share. This is a notable increase from the total of 22p paid in respect of the previous year, and marks another significant step in the Group's progressive dividend policy.”