M.P. Evans Group PLC: Unpacking a Record-Breaking First Half of 2026

M.P. Evans Group PLC, a name steeped in 150 years of history and a stalwart in the sustainable Indonesian palm oil sector, recently held its Q2 2026 earnings call on September 15th, 2026. And wow, did they have a story to tell! The U.K.-based, AIM-listed company, which manages an impressive 70,000 hectares and employs 12,500 people across six zero-waste mills in Indonesia, unveiled what can only be described as truly record-breaking interim results. It really paints a picture of a company firing on all cylinders, doesn't it?

The numbers speak for themselves. Peter Hadsley-Chaplin, the Executive Chairman, along with Chief Executive Matthew Coulson and CFO Luke Shaw, detailed a remarkable first half. Their own harvest jumped a significant 14% from last year, reaching a robust 705,400 tonnes. This translated into total crude palm oil (CPO) production climbing 11% to 192,300 tonnes. What’s truly commendable, and a testament to their operational prowess, is the oil extraction rate, which saw a meaningful increase to 24.2%.

Financially, the picture was just as bright. Gross profit soared by 25% to just shy of $79 million. Earnings per share saw a healthy 21% rise to GBP 0.865, and shareholders will be pleased with the interim dividend, which was boosted by a remarkable 39% to GBP 0.25 per share. The CPO mill-gate price stood firm at $873 per tonne, a slight uptick from the previous year, with palm kernel prices showing even stronger gains. Turnover, too, expanded by a solid 9%.

It's not just about increased output, but smart management. The unit cost to produce their own palm product actually decreased by 8% to $409 per tonne from $446 in the first half of 2025. This cost efficiency, even with some currency fluctuations, pushed their gross margin to a healthy 40%. The company generated just under $92 million in cash from operations in the first half, all while maintaining a debt-free balance sheet from the end of last year. Talk about financial prudence!

Beyond the impressive financials, M.P. Evans has been busy on the strategic front. An acquisition in July of last year—SBS and SKMA, including the Bumi Mas facility—for $35 million has already proven its worth, generating approximately $7 million in gross profit in its first eleven months. And they’re not stopping there. Just last week, they announced another strategic move: acquiring two adjacent parcels near Kota Bangun, KWB and Long Nah. These offer about 700 hectares currently planted, with the exciting potential to expand to over 3,000 planted hectares, an investment they anticipate will exceed $20 million in the coming years. It’s clear they're actively pursuing growth opportunities.

The company also provided an update on the Bertam Properties project in Malaysia, their last remaining Malaysian asset. While now representing less than 200 hectares of the original 2,000, it continues to deliver modest annual dividends of $1 million to $1.5 million. It’s a project that will likely take several more years to fully develop, but it’s part of the broader portfolio.

Looking ahead, M.P. Evans has considerable processing headroom. Their existing mills can handle an additional 15,000 to 20,000 hectares worth of land before a new mill would even be necessary. There’s a particular focus on the Simpang Kiri area, currently their only significant region without a mill, spanning 4,500 hectares. The ambition here is clear: acquire more land and build a new mill to maximize efficiency and control.

Sustainability, a cornerstone of their operations, was also a key discussion point. M.P. Evans aims for 100% certified sustainable output on a mill-by-mill basis by completely eliminating third-party inputs. What's interesting is their deliberate choice not to set a specific numerical or time-bound target, instead focusing on an organic, integrated approach to sustainability. Currently, almost 80% of their output is already certified sustainable, which is a fantastic achievement.

Of course, no earnings call is complete without a look at the broader market. The Indonesian government's role in exports was clarified; they are monitoring, not actively exporting, meaning M.P. Evans, which sells domestically, remains unaffected. A positive development for transparency is the shift to the Bursa Malaysia Derivatives (BMD) as the new benchmark for mill-gate pricing, replacing CIF Rotterdam. This should offer a more accurate guide.

Currency fluctuations also played a role. The continued weakening of the Indonesian rupiah against the dollar in H1 2026 actually provided a beneficial foreign exchange impact, helping to offset some cost pressures. Speaking of costs, while fertilizer prices saw a slight increase, the company’s 2026 P&L was largely protected from earlier spikes. Labor costs, however, are seeing upward pressure due to minimum wage rises in Indonesia, though again, the FX benefit helps temper this. Interestingly, the company isn't too concerned about synthetic palm oil, viewing it as a niche product focused on high-value applications, unlikely to impact the vast global vegetable oil market of over 200 million tonnes per annum.

And what about the weather? The impact of Super El Niño was naturally a point of discussion. While abnormally dry conditions were experienced in some locations, the delayed effect means a significant material impact on 2026 yields is unlikely. Historically, a larger El Niño in 2015-2016 led to a 6% crop reduction, while a smaller one in 2023-2024 saw stable crops in affected areas. Should supply be restricted globally, there's always the potential for compensatory price increases, a dynamic they're carefully watching.

Bringing us right up to date, the first eight months through the end of August 2026 show continued momentum. Own harvest is now up 16% to 965,000 tonnes, and total processed crop, including independent sources, stands at almost 1.1 million tonnes. Pricing has remained very consistent with the first six months, reinforcing the strong performance. All in all, M.P. Evans Group PLC seems to be navigating its markets with considerable skill, delivering impressive results and laying solid groundwork for continued, sustainable growth.