M.P. Evans Group Reports 10% Increase in Crop Harvest and Raises Dividend at AGM

M.P. Evans has used its AGM statement to tell investors that 2026 has started well. The headline numbers are solid: more crop harvested, better extraction in the mills, higher crude palm oil production, firm selling prices and costs that look under control.

For a palm oil producer, that is a pretty attractive mix. You want volume growth, you want efficiency, and you want pricing to hold up while input costs behave themselves. On the evidence in this update, M.P. Evans is ticking those boxes.

M.P. Evans AGM 2026 update: the key numbers investors should focus on

Metric	Five months to 31 May 2026	Comparator	Change
Total crop harvested in Group-managed areas	575,100 tonnes	521,400 tonnes	Up 10%
Crop from Group-owned areas	438,900 tonnes	397,900 tonnes	Up 10%
Crop from scheme-smallholder areas	136,200 tonnes	123,500 tonnes	Up 10%
Purchased crop	78,800 tonnes	100,400 tonnes	Down 22%
Total crop processed	653,900 tonnes	621,800 tonnes	Up 5%
Oil-extraction rate	24.2%	23.5%	Up 0.7 percentage points
CPO production	157,600 tonnes	145,400 tonnes	Up 8%
PK production	34,700 tonnes	32,100 tonnes	Up 8%
Average mill-gate CPO price	US$880 per tonne	US$876 per tonne	Broadly flat
Average PK price	US$824 per tonne	US$770 per tonne	Up 7%

Crop growth and better mill performance are the real story here

The standout operational detail is not just that harvest volumes rose by 10%, but that the Group also squeezed more oil out of the fruit it processed. The oil-extraction rate, which measures how efficiently mills turn fresh fruit bunches into saleable oil, improved to 24.2% from 23.5%.

That matters because higher extraction can lift output and margins without needing the same level of extra planting or bought-in fruit. It is basically efficiency doing some heavy lifting. In this case, it helped drive CPO production up 8% to 157,600 tonnes.

There is another encouraging point tucked into the detail. M.P. Evans bought 22% less crop from independent suppliers, down to 78,800 tonnes, while still increasing total processed volume by 5%. That suggests the business is leaning more on its own lower-cost, higher-quality fruit, which should be good news for profitability if sustained.

Indonesian palm oil export rule changes look less threatening than feared

One issue hanging over the sector recently has been Indonesia’s planned changes to export procedures for commodities including palm oil. M.P. Evans says it understands these changes will not be implemented until the start of 2027.

More importantly, the Group says it does not export CPO directly. Instead, it sells to domestic Indonesian refineries, and trading with those customers has continued as normal. Management also says there have been no significant pricing changes following the May announcement.

That should calm investors down a bit. Regulatory change in Indonesia can spook the market quickly, but based on this statement the immediate commercial impact on M.P. Evans appears limited. Of course, the final shape of the rules is still not disclosed here, so this is not a closed file yet.

Strong palm oil and palm kernel prices are supporting the 2026 outlook

Pricing has held up well. The Group realised an average mill-gate CPO price of US$880 per tonne in the first five months, almost unchanged from US$876 per tonne a year earlier.

Palm kernel pricing was even better, with the average price rising 7% to US$824 per tonne. That is useful because strong by-product pricing can give an extra lift to returns.

One small nuance is worth noting. The company says it continues to sell CPO at approximately US$830 per tonne after the export-rule announcement, which is below the five-month average of US$880 per tonne. The reason for that difference is not disclosed, so investors should avoid over-reading it, but it does suggest pricing has softened versus the earlier average.

Cost pressures are real, but M.P. Evans looks well placed to protect margins

The Group is not pretending the cost side is easy. Diesel and fertiliser costs have risen, with global raw material pressures linked partly to conflict in the Middle East.

That said, management sounds reasonably confident on cost control. A weaker Indonesian Rupiah, renewable energy generation at its mills and forward fertiliser purchasing have all helped offset the pressure. The company expects unit production costs for 2026 to be similar to the previous year.

That is a very important line in the update. If output is up, prices are firm and unit costs are stable, that is usually the sort of setup that supports earnings momentum. The company has not disclosed profit figures in this announcement, but the operational backdrop looks favourable.

New estate progress in East Kalimantan adds another growth angle

M.P. Evans also highlighted progress at the two oil-palm estates it acquired in East Kalimantan in late 2023. After producing 53,500 tonnes in the full year 2024, those estates delivered 46,700 tonnes in just the first five months of 2026.

Management says it expects a significantly higher crop for the full year. That is encouraging because acquired estates often need time and money before they really contribute. The rehabilitation, replanting and extension work appears to be starting to pay off.

Sustainable palm oil credentials continue to improve

Sustainability is a big deal in palm oil, both commercially and reputationally. M.P. Evans says 82% of its total CPO output in the first five months of 2026 was certified sustainable.

That compares with 76% for the full year 2025. It is not a perfectly like-for-like comparison, but the direction of travel is still positive. The Group is a long-standing member of the Roundtable on Sustainable Palm Oil, or RSPO, and all its mills are certified to produce and dispatch sustainable palm oil.

Dividend growth and share buybacks show board confidence

For income investors, the capital returns angle is another positive. The proposed final dividend is 42p per share, and if approved that would take total dividends for 2025 to a record 60p per share.

The board also says it intends to continue its long-term trend of increasing, or at least maintaining, dividends. That kind of wording matters. It is not a guarantee, but it does show a clear shareholder payout mindset.

On top of that, M.P. Evans has restarted buybacks, purchasing 133,316 shares between 27 May 2026 and 11 June 2026 for £2.0 million at an average price of £15.00 per share. Buybacks can be a useful signal that the board sees value in the shares, although they work best when backed by strong cash generation, which is not disclosed in this update.

What this AGM trading update means for retail investors

My read is that this is a good update. It is not flashy, but it is exactly the sort of operationally sound statement long-term investors like to see: more crop, better extraction, resilient prices, steady costs, rising sustainable output and continuing cash returns.

The main watchouts are external rather than internal. Indonesian regulation remains something to monitor, and commodity pricing can always swing. But right now, M.P. Evans looks to be executing well and benefiting from that execution.

In short, this AGM statement reinforces the idea that M.P. Evans is a steady operator in a volatile sector. That does not remove risk, but it does make the business look more robust than many investors might assume at first glance.