• Revenue: Increased by 15% year-over-year.

• Gross Profit: Rose to $116.6 million, up from $78.5 million in 2023.

• Earnings Per Share (EPS): Increased by 66%.

• Final Dividend: Up 17% to 52.5 pence.

• Average CPO Price: $823 per ton, compared to $729 in 2023.

• Cost Per Ton: Reduced to $410 from $427 in 2023.

• Cash from Operations: Over $150 million generated.

• Net Profit for the Year: $90.6 million, up 61% from 2023.

• Net Fund Position: $46.4 million, compared to a net debt position of $15 million at the end of 2023.

• Certified Sustainable Output: Increased to 69% of total output.

• Carbon Intensity Reduction: 36% reduction from the 2021 baseline.

• Warning! GuruFocus has detected 3 Warning Sign with JNPKF.

Release Date: March 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• M P Evans Group PLC (FRA:NYP) reported record-breaking financial results for 2024, with revenue up 15%, gross profit up nearly 50%, and earnings per share up 66%.

• The company announced a 17% increase in its final dividend, reflecting strong financial performance and commitment to shareholder returns.

• M P Evans Group PLC has successfully maintained production levels despite weather challenges in Indonesia, showcasing resilience in operations.

• The company has made significant strides in sustainability, reducing its carbon balance sheet by 36% since 2021 and increasing the proportion of certified sustainable output to 69%.

• M P Evans Group PLC has a strong cash position, generating over $150 million from operations in 2024, highlighting its robust cash flow and financial health.

Negative Points

• The sustainability premium income decreased from $6.5 million to $5.6 million, despite an increase in certified volume, due to lower demand for certified products.

• There was a slight decrease in palm oil production in 2024 due to dry weather conditions in Indonesia, impacting overall yield.

• The cost of buying in fruit from outside suppliers increased, affecting the total cost per ton, which rose by 4% to $519.

• The company faces challenges in narrowing the gap between its share price and book value per share, despite strong financial performance.

• Uncertainty in the sustainability market, particularly with the impending introduction of new EU deforestation regulations, has impacted the premium for sustainable oil.

Q & A Highlights

Q: Does palm oil have a smaller carbon footprint compared to soy? A: Matthew Coulson, CEO, explained that palm oil is more efficient in terms of yield per hectare, producing over three tons of oil per hectare annually, compared to soy's half a ton. This efficiency contributes to a smaller carbon footprint for palm oil.