M P Evans Group (AIM:MPE), the Indonesian palm oil producer, reported gross profit of $78.9 million for the six months ended 30 June, up 25% from $63.4 million a year earlier.
Earnings per share rose 21% to 86.5p, driven by an 8% increase in total crop processed to 798,200 tonnes and an 11% rise in crude palm oil (CPO) output to 192,300 tonnes.
The mill-gate CPO price edged up 1% to $873 per tonne, while unit production costs from the Group's own areas fell 8% to $409 per tonne as rising volumes and efficiency gains offset wage and input cost pressures.
The board declared a 39% increase in the interim dividend to 25p per share, though it cautioned this "should not be considered indicative" of plans for the full year, noting it is reviewing the balance between interim and final payouts.
Chairman Peter Hadsley-Chaplin said the first half had been "particularly encouraging", with increases in both crop harvested and mill extraction rates supporting another rise in earnings.
Group cash climbed 61% to $113.5 million. Certified sustainable production rose 16% to 151,800 tonnes, representing 79% of total output.
Since the period end, the Group has acquired PT Kalimantan Wahana Berjaya for $2.0 million, adding planted land near its Kota Bangun estate with potential for a further 3,000 or more planted hectares.
News Intelligence what this means for the company
M.P. Evans reported 25% gross profit growth and 21% EPS growth in H1 2026, driven by 8% higher crop volumes and 11% CPO output growth, with unit costs falling 8% despite input pressures. The board lifted the interim dividend 39% to 25p per share—a material payout increase anchored to a 61% cash rise to $113.5m—though it flagged the rise should not signal full-year guidance, and separately completed a $2.0m land acquisition near Kota Bangun to add 776 planted hectares plus up to 3,000 more plantable hectares.
The combination of operational leverage (volumes up, unit costs down) and a strengthened balance sheet ($113.5m cash, up 61%) supports the dividend lift and signals confidence in near-term cash generation. The caveat on full-year payout guidance and the board's review of interim/final balance introduces uncertainty on capital allocation policy going forward.
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