MP Evans Group PLC on Monday said its interim profit has surged, following a period of increased production and higher palm oil prices.

The Tunbridge Wells, England-based producer of Indonesian crude palm oil said its pretax profit for the six-month period ended June 30 was $40.2 million, up 80% on-year from $22.3 million. Revenue rose 22% to $163.7 million from $134.5 million.

The company declared an interim dividend per share of 15.00 pence, up 20% on-year from 12.50p.

Total crops processed increased for the first half of 2024 by 5.4% to 759,700 tonnes from 721,100 tonnes at the same time last year. Meanwhile, production costs fell as fertiliser costs, one of the group’s largest input costs, have continued to fall from the peak observed around the end of 2022, MP Evans said.

During 2023, the group added more than 10,000 planted hectares to its portfolio, with acquisitions in both Sumatra and East Kalimantan, Indonesia. The company reported a significant part of this area continues to be productive and has added to the total crop harvested in its first quarter of 2024. A further 8,300 hectares were acquired towards the end of 2023 at Kota Bangun, Indonesia. The group expects to see ‘significant improvements’ in the next few years from these new areas.

MP Evans also announced on Monday it has extended its share buyback program, which will now expire on December 16 with a budget of £2 million. All shares acquired under the program will be cancelled.

Chair Peter Hadsley-Chaplin said: ‘Following higher production and higher palm oil prices, the board is delighted to report a significantly improved first-half profit, and a 20% increase in the interim dividend. The second half of the year has, thus far, seen palm oil prices strengthen further and, accordingly, the group is well-placed for another strong result for 2024 as a whole.’

Shares in MP Evans were up 5.3% at 899.20 pence each in London on Monday morning.

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