Q2 2026 MP Evans Group PLC Earnings Call

September 15, 2026

Speaker #2: Hit zero—just give a brief intro and hand over to you, Peter.

[Company Representative] (MP Evans Group): Hit zero. Just give a brief intro and hand over to you, Peter.

Speaker #3: Thanks, Alex.

Peter Hadsley-Chaplin: Thanks, Alex.

Speaker #2: Good afternoon and welcome to the MP Evans Group Q3 interim results and investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged, and they can be submitted at any time using the Q&A tab situated on the right-hand corner of your screen.

[Company Representative] (MP Evans Group): Good afternoon, and welcome to the MP Evans Group PLC interim results investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged, and they can be submitted at any time using the Q&A tab situated on the right-hand corner of your screen. Just simply type in your questions and press send. Before we begin, I would like to submit the following poll, and I would now like to hand you over to Chairman Peter Hadsley-Chaplin. Good afternoon to you, sir.

Operator: Good afternoon, and welcome to the MP Evans Group PLC interim results investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged, and they can be submitted at any time using the Q&A tab situated on the right-hand corner of your screen. Just simply type in your questions and press send. Before we begin, I would like to submit the following poll, and I would now like to hand you over to Chairman Peter Hadsley-Chaplin. Good afternoon to you, sir.

Speaker #2: To simply type in your questions and press send. Before we begin, I would like to submit the following poll, and I would now like to hand you over to Chairman Peter Hasley, Chaplain.

Speaker #2: Good afternoon to you, sir.

Speaker #3: Thank you, Alex, and thank you all very much for joining us today for our presentation of our 2026 interim results, which were announced to the market yesterday.

Peter Hadsley-Chaplin: Thank you, Alex, and thank you all very much for joining us today for our presentation of our 2026 interim results, which were announced to the market yesterday, of which we are very proud. These are record-breaking results once again. I have to say, are a credit to our team from the UK to our 12,500 employees in Indonesia. A company with a history of 150 years, with a focus in the last 20 to 30 years exclusively on sustainable Indonesian palm oil. We have now 70,000 hectares under our management. We have six zero-waste mills. As I mentioned, we employ 12,500 people. I would just like to introduce you to my colleagues, Matthew Coulson, our Chief Executive, and Luke Shaw, our Chief Financial Officer. I will kick off by providing an overview of the results.

Speaker #3: Of which we're very proud. These are record-breaking results. Once again, and I have to say, in credit to our team from the UK to our 12 and a half thousand employees in Indonesia.

Speaker #3: The company has a history of 150 years, with a focus in the last 20 to 30 years exclusively on sustainable Indonesian palm oil. We now have 70,000 hectares under our management.

Speaker #3: We have six zero-waste mills, and as I mentioned, we employ 12,500 people. I'd just like to introduce you to my colleagues: Matthew Coulson, our Chief Executive, and Luke Shaw, our Chief Financial Officer.

Speaker #3: And I will kick off by providing an overview of the results. We'll talk for probably not even quite half an hour on the presentation, and then we'd be delighted to receive any questions. The cutoff will be 1 o'clock.

Peter Hadsley-Chaplin: We will talk for probably not even quite half an hour on the presentation. Then we would be delighted to receive any questions that the cut-off will be at 1:00. We may well be done by then. To kick things off, we are delighted that our own harvest from our own majority-held crops was up 14% up on last year, 705,400 tons. Whilst the purchases from independent suppliers was quite significantly reduced, which has helped towards a better crop mix. Our total crude palm oil production was up by 11% to 192,300 tons. Very pleasingly, I have to say impressively, our oil extraction rate is up also significantly to 24.2%, which is very high and creditable by any industry standards. Our crude palm oil mill gate price was actually only a smidge up on last year at the continuing robust level of $873 per ton.

Speaker #3: We may well be done by then. But to kick things off, we're delighted that our own harvest from our majority-held crops was up 14% on last year, at 705,400 tons.

Speaker #3: Whilst the purchases from independent suppliers was quite significantly reduced, which has helped towards a better crop mix, our total crude palm oil production was up by 11% to 192,300 tons.

Speaker #3: And, very pleasingly—and I have to say, impressively—our oil extraction rate is up also, significantly, to 24.2%, which is very high and credible by any industry standards.

Speaker #3: Our crude palm oil mill-gate price was actually only a smidge up on last year, at the continuing robust level of $873 per tonne.

Speaker #3: The palm kernel price was up by a little bit more, but our gross profit was up by 25% to just under £79 million. This is due to a number of things, which my colleagues will elaborate on.

Peter Hadsley-Chaplin: The palm kernel price was up by a little bit more. Our gross profit was up by 25% to just under GBP 79 million. This is due to a number of things which my colleagues will elaborate on. Improving extraction rates, stronger pricing, particularly on palm kernels, a more favorable crop mix, and the benefits of the better performance following our significant acquisitions over the last two or three years, and indeed, a favorable foreign exchange variation. Earnings per share were up by 21% to 86.5 pence. We are delighted that the board has agreed an interim dividend up by 39% to 25 pence per share. We are looking to balance a little bit the ratio of interim to final dividend.

Speaker #3: Improving extraction rates, stronger pricing—particularly on palm kernels—a more favorable crop mix, and the benefits of better performance following our significant acquisitions over the last two or three years, and indeed, a favorable foreign exchange variation.

Speaker #3: Earnings per share were up by 21% to 86.5 pence. And we're delighted that the board has agreed to an interim dividend, up by 39% to 25 pence per share.

Speaker #3: We are looking to balance a little bit the ratio of interim to final dividends. It's not necessarily an indication of what will follow by way of the final dividend, but obviously a decision will be taken there.

Peter Hadsley-Chaplin: It is not necessarily an indication of what will follow by way of the final dividend, but obviously a decision will be taken on that closer to the time of our results for the year. On that note, I will hand over to Matthew initially.

Speaker #3: Taken on that closer to the time of our results for the year. So, on that note, I will hand over to Matthew initially.

Speaker #4: That's great. Thank you very much, Peter. The next slide here is one that will be familiar to many of you who have been with us in these presentations previously.

Matthew Coulson: Great. Thank you very much, Peter. The next slide here is one that will be familiar to many of you who have been with us in these presentations previously. What this seeks to do, very simply, is illustrate the balance of inputs and outputs when we think about the crop that we process and the CPO that then is indeed produced. The key thing here really is to notice, as Peter has already indicated, the reduction in the proportion that comes into our mills from outside suppliers. You can see there that in 2026 now, that only accounts for 12% of what gets processed in our mills. So 88% now comes from our own areas that we manage, both from areas under our direct ownership and areas we manage on behalf of our associated scheme smallholders. A continuing change in that crop mix.

Speaker #4: What this seeks to do, very simply, is illustrate the balance of inputs and outputs when we think about the crop that we process and the CPO that then is, indeed, produced.

Speaker #4: The key thing here really is to notice, as Peter has already indicated, the reduction in the proportion that comes into our mills from outside suppliers. You can see there that in 2026, now, that only accounts for 12% of what gets processed in our mills.

Speaker #4: So, 88% now comes from our own areas that we manage, both from areas under our direct ownership and areas we manage on behalf of our associated scheme smallholders.

Speaker #4: So a continuing change in that crop mix—and that really does help, then, that increase in the oil extraction rate, up now to 24.2% overall, as an average across the six mills that we operate in our locations.

Matthew Coulson: That really does help then that increase in the oil extraction rate up now to 24.2% overall as an average across the six mills that we operate in our locations. It also then really helps with improving the amount of output we are able to certify as sustainable output, up now to almost 80%. This is a journey we are very much on, and we continue to focus on as we push forward, changing that dynamic, changing the mix, what goes into our mills and therefore what comes out of our mills. It is making a huge difference to our business and indeed will continue to do so. Looking then now to the market dynamics and indeed the pricing environment. A quick word from me on this and then I will hand over to Luke.

Speaker #4: And it also then really helps with improving the amount of output we're able to certify as sustainable output, up now to almost 80%. And this is a journey we're very much on.

Speaker #4: And we continue to focus on, as we push forward, changing that dynamic, changing the mix—what goes into our mills and, therefore, what comes out of them.

Speaker #4: It's making a huge difference to our business and indeed will continue to do so. Looking then now at the market dynamics and indeed the pricing environment.

Speaker #4: A quick word from me on this, and then I'll hand over to Luke. You may remember that we were commenting on this back in May when there were some indications from the government in Indonesia about potential changes to export arrangements for palm.

Matthew Coulson: You may remember that we were commenting on this back in May when there was some indications from the government in Indonesia about potential changes to export arrangements for palm, and indeed for several other key commodities in Indonesia. There was some indication from the government in Indonesia that they wanted to play a more active role in exporting of these commodities, potentially even to the extent of being the exporter of some of these commodities. That caused some concern in the sector and in the wider marketplace, certainly for a short period of time. Things have become a lot clearer since then, and actually what has become a lot clearer is that it seems that is not the government's intention.

Speaker #4: And indeed, for several other key commodities in Indonesia, there was some indication from the government in Indonesia that they wanted to play a more active role in the exporting of these commodities, potentially even to the extent of being the exporter of some of these commodities.

Speaker #4: That caused some concern in the sector and in the wider marketplace, certainly for a short period of time. Things have become a lot clearer since then, and actually, what has become a lot clearer is that it seems that isn't the government's intention.

Speaker #4: What they want to do is actually monitor what's going on in the export environment, be very clear about how things are being exported, what prices things are being exported at, just to be reassured as a government that things are being done properly, things are being priced appropriately when they leave the shores of Indonesia.

Matthew Coulson: What they want to do is actually monitor what is going on in the export environment, to be very clear about how things are being exported, what prices things are being exported at, just to be reassured as a government that things are being done properly, things are being priced appropriately when they leave the shores of Indonesia, and that is the approach that they are taking. From our perspective, what we have seen is that, as I am sure many of you are already aware, we are not exporters. We sell everything domestically producing in exactly the same way, and actually we have carried on selling it the same way throughout the period, and indeed for very consistent pricing. I think that has been borne out by the results that we are announcing now and showing to the market.

Speaker #4: And that's the approach that they are taking. From our perspective, what we've seen is that, as I'm sure many of you are already aware, we're not exporters.

Speaker #4: We sell everything domestically, producing in exactly the same way, and actually we've carried on selling in the same way throughout the period, and indeed for very consistent pricing.

Speaker #4: And I think that's been borne out by the results that we're announcing now and showing to the market. So I think it's very important to take a moment on that before we get into the pricing environment in a bit more thorough way.

Matthew Coulson: I think that's just very important to take a moment on that before we then get into the pricing environment in a bit more of a thorough way, and I'll pass over to Luke to comment on that.

Speaker #4: And I'll pass over to Luke's comment on that. Thanks, Matthew. So yeah, we touched on the price right at the start with Peter, that the CPO price for the year was up 1%, so pretty static compared to the same period in '25.

Luke Shaw: Thanks, Zaki. You would have touched on the price line right at the start with Peter, that the CPO price for the year was up 1%, so pretty static compared to the same period in 2025. But the PK pricing was certainly up 9%, and that's had a beneficial impact to our profitability, which I'll touch on in a couple of slides' time. The main message here on this slide was to kind of introduce a new external benchmark for pricing. Historically, we've always referenced CIF Rotterdam as a third-party external or widely available benchmark pricing data that you can usually use to try and work out what we're receiving at mill gate.

Speaker #4: But the PK pricing was certainly up 9%, and that's had a beneficial impact on our profitability, which I'll touch on in a couple of slides' time.

Speaker #4: The main message here on this slide was to kind of introduce a new external benchmark for pricing. Historically, we've always referenced CIF Rotterdam as a third-party external, or widely available, benchmark pricing data.

Speaker #4: That you can usually use to try and work out what we're receiving at Millgate. What we've realized over the last sort of six to nine months is that the SIF Rotterdam price that was published and is on a website daily has ventured away from really what we're receiving at Millgate, and a gap has ultimately appeared.

Luke Shaw: What we've realized over the last six to nine months is that the CIF Rotterdam price that is published and is on a website daily has ventured away from really what we're receiving at mill gate, and a gap has ultimately appeared, and we feel that it's probably not the most appropriate benchmark to use moving forward. What we'd like to do here is introduce the new benchmark called the BMD, which is a Bursa Malaysia Derivative. It's a forward market out of Malaysia, and other palm oil companies do use this as well as their benchmarking tool for price.

Speaker #4: And we feel that it's probably not the most appropriate benchmark to use moving forward. So what we'd like to do here is introduce the new benchmark called the BMD, which is a Bursa Malaysia derivative.

Speaker #4: It's a forward market out of Malaysia. Other palm oil companies do use this as well as their benchmarking tool for price. And I've put there a little reconciliation, which I won't go through in detail, but a lot of the reconciling items there—and that's just meant to be an illustrative table to help guide—are similar to what you would have used in your bridge from EMG to SIF Rotterdam anyway.

Luke Shaw: I've put there a little reconciliation, which I won't go through in detail, but a lot of the reconciling items there, and that's supposed to be an illustrative table to help guide, are similar to what you would have used in your bridge from EMG to CIF Rotterdam anyway. We will continue to show the CIF Rotterdam data on our website for historical purposes, but we will introduce this BMD chart on our website moving forward, and that will be updated daily as well. A slight shift there, but we think that this is a better guide to show how we are doing at Millgate. In terms of the results themselves, just starting with revenue.

Speaker #4: So, we will continue to show the SIF Rotterdam data on our website for historical purposes, but we will introduce this BMD chart on our website moving forward, and that'll be updated daily as well.

Speaker #4: So, a slight shift there, but we think that this is a better guide to show how we are doing at Millgate. In terms of the results themselves, just starting with revenue.

Speaker #4: So, we saw a 9% increase in turnover. And whilst we did have that PK pricing benefit this time around, it's really nice to explain that we saw a boost in that top line. And then, also profitability-wise, we had increased volumes—both of PK and CPO—that came from that increased harvest that we were talking about earlier. But also, that better extraction rate created more produce for us to sell out of our mills as well.

Luke Shaw: We saw a 9% increase in turnover, and while we did have that PK pricing benefit, this time around it is really nice to explain that real boost in that top line and then also profitability-wise was increased volumes, both for PK and CPO. That came from that increased harvest that we were talking about earlier, but also that better extraction rate created more produce for us to sell out of our mills as well. That really was fantastic to see the hard work that has been going in on the ground. As yield improves, extraction rates improve, that comes through in the amount of products that we are selling. On the cost side, I am delighted to announce that unit cost has fallen, so they are down 8% to $409 per ton.

Speaker #4: So that really was fantastic to see the hard work that's been going in on the ground. As yields improve, as extraction rates improve, that comes through in the amount of products that we're selling.

Speaker #4: On the cost side, I'm delighted to announce that unit cost has fallen. So they're down 8%, to $409 per ton. That's the cost to produce a ton of our own palm product, and that's down from $446 in the first half last year.

Luke Shaw: That is the cost to produce a ton of our own palm product, and that is down from the $446 in the H1 last year. We have had some FX benefit. Peter touched on that. The Indonesian rupiah continued to weaken through the H1 of the year against the dollar. So that 409, if you were to make a constant currency number, would be closer to 420. We have still seen a really good improvement and step down on that unit cost, and that is really a result of really good diligence from the guys on the ground managing the costs, but also that increased volume. That increased volume really allows us to drive down unit costs, and we hope for that to continue as we move through the year and in future years as well. We have seen a slight increase in fertilizer costs.

Speaker #4: We have had some FX benefit; people touched on that. The Indonesian rupiah continued to weaken through the first half of the year against the dollar.

Speaker #4: So that 409, if you were to make a constant currency number, would be closer to 420. So we've still seen a really good improvement and step down on that unit cost.

Speaker #4: And that's really a result of really good diligence from the guys on the ground managing the costs, but also that increased volume. That increased volume really allows us to drive down unit costs.

Speaker #4: And we hope for that to continue as we move through the year and into future years as well. We have seen a slight increase in fertilizer costs.

Speaker #4: You'll see the proportion of costs for fertilizers come up slightly. We did say in March, when we were last talking to investors, that we were generally protected from the sort of high fertilizer price environment that we've seen after the events in the Middle East in March.

Luke Shaw: You will see the proportion of costs for fertilizer has gone up slightly. We did say in March, when we were last talking to investors, that we were generally protected from the sort of high fertilizer price environment that we have seen after the events in the Middle East in March, and that is still true. So 2026 P&L is protected. But we did start to see pricing creep up a little bit towards 2025, so that is just some of that feeding into the P&L through the H1. In terms of the total cost of production from all sources, so the total cost, including that that we have to buy in from scheme smallholders and independents, we saw that go down 7% to $514 per ton.

Speaker #4: And that's still true. So, 2026 TNL is protected. But we did start to see price increase a little bit towards 2025, so that's just some of that feeding into the P&L through the first half.

Speaker #4: In terms of the total cost of production from all sources—so the total costs, including that which we have to buy in from scheme smallholders and independents.

Speaker #4: We saw that go down 7% to $514 per ton. If you do a sort of weighted average, that just shows that when we buy in-crop, that costs us around about $730 per ton.

Luke Shaw: If you do a sort of weighted average, that just shows that when we buy in crop, that costs us around about $730 a ton, and then to produce our own fruit, it is the $409. So that really gives you an idea of the margin benefit as we process more of our own crop into our mills and change that mix. If we look at the gross profit number, we started with last year's H1 gross profit of just over 63 million, and then we had that net pricing benefit of 3.9. Again, most people will know that we have to give a little bit of price back to those people that we buy from. It is quite a static margin. If the CPI price goes up, we have to pay more for that product that comes in from the third parties.

Speaker #4: And then to produce our own fruit, it's the $409. So that really gives you an idea of the margin benefit as we process more of our own crop into our mills and change that mix.

Speaker #4: So, if we look at the gross profit number, we started with last year's first-half gross profit of just over £63 million. And then we had that net pricing benefit of £3.9 million.

Speaker #4: So again, most people will know that we have to give a little bit of price back to those people that we buy from. It's quite a static margin.

Speaker #4: If the CPI price goes up, we have to pay more for that product that comes in from the third parties. So, we saw a net price benefit of 3.9, predominantly driven by PK pricing.

Luke Shaw: We saw a net price benefit of 3.9, predominantly driven by PK pricing. That gets you to 67 million, and then you can see the result of that extra volume from that improved harvest, improved extraction rates, and the mix benefit as well coming through into the P&L. In the next block, 3.7 million of acquisition. We made an acquisition in July last year, SBS and SKMA, which is our Bumi Mas facility. That wasn't there in 2025. That is a true bridge item for 2026. It is worth calling out that the 3.7 million plus the profit that was generated in the first five months of ownership last year has totaled together around about 7 million of gross profit in the first 11 months of ownership. That is with an asset that we paid $35 million for.

Speaker #4: That gets you to 67 million. And then you can see the result of that extra volume from that improved harvest, improved extraction rates, and the mix benefit as well coming through into the P&L.

Speaker #4: And then the next block, $3.7 million of acquisition—we made an acquisition in July last year: SBS and SKMA, which is our booming mass facility.

Speaker #4: That wasn't there in 2025, so that is a true bridge item for 2026. But it's worth calling out that the £3.7 million, plus the profit that was generated in the first five months of ownership last year, has totaled together to around £7 million of gross profit in the first 11 months of ownership.

Speaker #4: And that's with an asset that we paid $35 million for. So, a fantastic level of return already, and I think it really demonstrates the benefit of adding incremental hectarage around the mill footprint.

Luke Shaw: A fantastic level of return already, and I think really demonstrates the benefit of adding incremental hectarage around the mill footprint. We do still have cost pressure, of course we do. Predominantly labor, as we sort of see an inflationary rise each year linked to the minimum wage rises in Indonesia. We pay more than that, but that helps set where the inflation, the labor wage inflation goes. That has been offset by that FX benefit that I was talking about on the previous slide. You can see the 2 million there year-over-year offsetting that labor inflation. The labor is paid in rupiah, and we get the benefit back there.

Speaker #4: We do still have cost pressure—of course we do—predominantly labour, as we sort of see an inflationary rise each year linked to the minimum wage rises in Indonesia.

Speaker #4: We pay more than that, but that helps set where the inflation for labour wage inflation goes. But that has been offset by that FX benefit I was talking about on the previous slide.

Speaker #4: You can see the 2 million there year over year, offsetting that labour inflation. The labour is paid in rupiah, and we get the benefit back there.

Speaker #4: So that's how you go from the £63 million to just under £79 million of gross profit in the first half of '26. And that's a 40% gross margin.

Luke Shaw: That is how you go from the 63 million to the just under 79 million of gross profit in H1 2026, and that is a 40% gross margin, which is a fantastic achievement, and it is 57% an increase in gross profit of 25%. Moving from profit to cash. Again, on that cash, sorry, on that cost per ton slide, the $409 that we talk about is an all-in cost, so that includes a reasonable amount of depreciation. If you take that out, the cash cost a ton for processing our own product is closer to $350 per ton, and that is why you get this really nice cash conversion from operating profit to cash from operations. You can see that in H1, we generated just under 92 million Operations. We came into the year with a significant cash balance on the balance sheet.

Speaker #4: It's a fantastic achievement. And as Peter said at the start, an increase in gross profit for 25%. Moving from profit to cash, again, on that cash sorry, on that cost per ton slide, the 409 dollars that we talk about is an all-in cost.

Speaker #4: So that includes a reasonable amount of depreciation. So, if you take that out, the cash cost per ton for processing our own product is closer to $350 per ton.

Speaker #4: And that's why you get this really nice cash conversion from operating profit to cash from operations. And you can see that in the first half, we generated just under £92 million.

Speaker #4: From operations, we came into the year with a significant cash balance on the balance sheet. At the end of last year, we paid off our debt.

Luke Shaw: At the end of last year, we paid off our debts. We have a debt, paying our taxes. In the orange bar on the second line, you can see where we have just been balancing the capital allocation. That is the final dividend from last year going out, which was paid in June, and then also continuing to invest in the group, just under $11 million on CapEx projects, some of which is planting and replanting, but also some projects that we are working on which can help drive operational efficiencies in the future, which is a really good use of cash in terms of returns. Then a little bit of share buyback as well. Certainly through Q2 in the year, we spent just over $3 million buying back some of our shares.

Speaker #4: So, we have a debt paying our taxes, and then in the orange bar on the second line, you can see where we've just been balancing the capital allocation.

Speaker #4: So, that's the final dividend from last year going out, which is paid in June. And then, also continuing to invest in the group—just under £11 million on capex projects, some of which is planting and replanting.

Speaker #4: But also, some projects that we're working on can help drive operational efficiencies in the future, which is a really good use of cash in terms of returns.

Speaker #4: And then, a little bit of share buyback as well. Certainly, through the second quarter in the year, we spent just over $3 million buying back some of our shares.

Speaker #4: So we spent some, but we still ended the period with more than we went in with. And we had a closing cash balance at the end of the first half of $113.5 million.

Luke Shaw: We spent some, but we still ended the period with more than we went in with, and we had a closing cash balance at the end of the H1 of $113.5 million, which we fully intend to try and use. Matthew will touch on in a minute a little bit of how we spent that on a new acquisition, which we announced last week. On dividends, Peter said right at the start, delighted to announce a 39% increase in the interim dividend up to 25p. An element of that is rebalancing between final and interim. Nonetheless, really delighted to be able to give that return to shareholders. It continues our progression in terms of upping the dividends, particularly over the last few years in particular. I will pass back to Matthew to touch on a couple of strategic items.

Speaker #4: Which we fully intend to try and use—and Matthew will touch on in a minute—a little bit of how we spent that on a new acquisition, which we announced last week.

Speaker #4: On dividends, Peter said right at the start, "I'm delighted to announce a 35—sorry, 39% increase in the interim dividend, up to 25p. An element of that is rebalancing between final and interim."

Speaker #4: But nonetheless, we're really delighted to be able to give that return to shareholders. It continues our progression in terms of upping the dividends, particularly over the last few years in particular.

Speaker #4: And now I'll pass back to Matthew to touch on a couple of strategic items.

Speaker #2: Brilliant. Thank you, Lou. So, yeah, focusing on strategy again, many of you will be familiar with what's on this slide. This just allows us a chance to reflect back on our strategic priorities under the four key headings we've set out now for several years: responsibility, excellence, growth, and yield.

Matthew Coulson: Brilliant. Thank you, Luke. Focusing on strategy. Again, many of you will be familiar with what is on this slide. This just allows us a chance to reflect back on our strategic priorities under the four key headings we have set out now for several years around responsibility, excellence, growth, and yield. Important for us to demonstrate we continue to make progress against all of these strategic priorities during the course of 2026, and we are continuing to be very, very focused on each and every one of these as we push forward with all aspects of the business. I think perhaps rather than, if you like, lingering here, it is more important to give you specific examples, and demonstrate what this looks like in more detail and provide you with a case study.

Speaker #2: And it's important for us to demonstrate that we continue to make progress against all of these strategic priorities during the course of 2026. We are continuing to be very, very focused on each and every one of these as we push forward with all aspects of the business.

Speaker #2: And I think perhaps rather than if you like lingering here it's more important to give you specific examples and demonstrate what this looks like in more detail and provide you with a case study and this gives us the opportunity to sort of look back and look at an area we acquired a few years ago and go back and you'll remember in 2023 we acquired some further hectarage in East Kalamantan close to our Kottabangan project.

Matthew Coulson: This gives us the opportunity to look back and look at an area we acquired a few years ago. We go back, and you will remember in 2023, we acquired some further hectarage in East Kalimantan, close to our Kota Bangun project. This area was one part called ABK and another part called NAS. In total, around 8,000 planted hectares, which we were able to then incorporate within our larger Kota Bangun project. We knew on acquisition that this was an area that required some rehabilitation by our agronomic team. We also knew that this was going to take some time to work through that rehabilitation project. Hopefully, as always with these things, it is easier to demonstrate pictorially to show the work that has been done, and hopefully the pictures do provide some clear indication.

Speaker #2: This area was once called, well, one part called ABK and another part called NAS. In total, around 8,000 planted hectares, which we were able to then incorporate within our larger Kottabangan project.

Speaker #2: We knew on acquisition that this was an area that required some rehabilitation by our agronomic team. We also knew that it was going to take some time to work through that rehabilitation project.

Speaker #2: Now, hopefully, as always with these things, it's easier to demonstrate visually, to show the work that has been done, and hopefully the pictures do provide some sort of clear indication that it's the same area pictured twice, a couple of years apart.

Matthew Coulson: That is the same area pictured twice a couple of years apart, and you get a sense there of the difference that can be made by our teams over that time span. If that is not illustration enough, on the left of the slide, you can see the difference that has been made in terms of yield per mature hectare during that period of time. In the first full year of ownership of this new area, we received a yield of less than 10 tonnes of crop per hectare, which is not great, but we knew that it was going to be that way on the way in. We are now looking at something approaching doubling that over the course of the last couple of years, with more still to come, I hasten to add.

Speaker #2: And you get a sense there of the difference that can be made by our teams over that time span. And if that's not illustration enough, on the left of the slide, you can see the difference that has been made in terms of yield per mature hectare during that period of time.

Speaker #2: In the first full year of ownership of this new area, we were seeing a yield of less than 10 tons of crop per hectare, which is not great, but we knew that it was going to be that way going in.

Speaker #2: We're now looking at something approaching doubling that over the course of the last couple of years—with more still to come, I hasten to add.

Speaker #2: That's not the end of the journey, but we're making some substantial strides forward as we work through improving the quality of this area. And this is all very much consistent with what we've been describing to you earlier.

Matthew Coulson: That's not the end of the journey, but we're making some substantial strides forward as we work through improving the quality of this area. This is all very much consistent with what we've been describing to you earlier in terms of focusing on increasing the harvest from our own areas, therefore reducing the reliance on outside suppliers, improving the quality of the crop that therefore comes into our mills, and enabling us to improve the extraction rates that we deliver in the mills that we run for ourselves. You can see that specifically. Look at the history over the last few years, of the extraction rates we're delivering in our Kota Bangun mills. A lot of this crop has been going into. There are two mills that we have in Kota Bangun, one called Bumi Permai, one called Rahayu.

Speaker #2: In terms of focusing on increasing the harvest from our own areas, therefore reducing the reliance on outside suppliers, improving the quality of the crop that comes into our mills, and enabling us to improve the extraction rates that we deliver in the mills that we run for ourselves.

Speaker #2: And you can see that—specifically, look at the history over the last few years of the extraction rates we're delivering in our Kottabangan mills.

Speaker #2: A lot of this crop has been going into—there are two mills that we have in Kottabangan, one called Bhumi Pumai, one called Rahayu.

Speaker #2: A lot of this crop has been going into our Rahayu mill, and it wouldn't hurt to look back at the extraction rates that the Rahayu mill has been delivering over the last few years.

Matthew Coulson: A lot of this crop has been going into our Rahayu mill, and it wouldn't hurt to look back at the extraction rates that the Rahayu mill has been delivering over the last few years. They have been increasing. One of the reasons is because of the increased quality and quantity of the crop coming out of these areas. This nicely brings us on to what's just happened. As announced last week, we've acquired some further land, again, close to Kota Bangun. So two adjacent parcels, one called KWB, one called Long Nah. At the moment, there isn't very much planted land, only around 700 hectares currently planted, also requiring some rehabilitation. That's reflected in the relatively low initial amount invested. But excitingly, what we have in this combined area is the opportunity to do more planting for future growth.

Speaker #2: They have been increasing, and one of the reasons is because of the increased quality and quantity of the crop coming out of these areas.

Speaker #2: And this nicely brings us on to what's just happened. As announced last week, we've acquired some further land again, close to Kottabangan—so two adjacent parcels, one called KWB, one called Long Nar.

Speaker #2: At the moment, there isn’t very much planted land—only around 700 hectares currently planted, also requiring some rehabilitation. And that’s reflected in the relatively low initial amount invested. But, excitingly, what we have in this combined area is the opportunity to do more planting for future growth.

Speaker #2: We estimate that there is the opportunity to end up with 3,000 or 3,000-plus planted hectares here, and we anticipate investing somewhere north of $20 million in the coming years.

Matthew Coulson: We estimate that there is the opportunity to end up with 3,000 or 3,000-plus planted hectares here, and we anticipate investing somewhere north of $20 million in the coming years. We're obviously excited about getting stuck into new plant production and increase, again, the amount of our own crop we will be processing through those Kota Bangun mills, which is very exciting for us for future growth and future quality improvements. Now, of course, we've been focusing very much on thinking about the H1 and thinking about the results that we've been delivering for the first 6 months of this year. Of course, as we sit here in September, we can, of course, give you a quick update on what the first 8 months looked like through to the end of August, and that's what this slide does.

Speaker #2: We'll obviously be excited about getting stuck into new plants. The production increase, again, the amount of our own crop we will be processing through those Kottabangan mills, which is very exciting for us for future growth and future quality improvements.

Speaker #2: Now, of course, we've been focusing very much on thinking about the first half and thinking about the results that we've been delivering for the first six months of this year.

Speaker #2: And of course, as we sit here in September, we can give you a quick update on what the first eight months look like, through to the end of August.

Speaker #2: And that's what this slide does. Peter mentioned at the very start that the crop for the first six months was up 14% from the areas under our own management.

Matthew Coulson: Peter mentioned at the very start that the crop for the first 6 months was up 14% from the areas under our own management. As we roll forward to the end of August, a 14% increase becomes a 16% increase. As you can see there, the crop harvested for the first 8 months was 965,000 tons. Then we add on the independent crop, and we've processed almost 1.1 million tons in the first 8 months of this year. On pricing for the first 8 months is actually very similar to the pricing for the first 6 months, which is very encouraging. So hopefully you get a good sense with two-thirds of the year now under our belts that we're moving ahead with great confidence into the H2 of the year.

Speaker #2: As we roll forward to the end of August, the 14% increase becomes a 16% increase. As you can see there, the crop harvested for the first eight months was 965,000 tons.

Speaker #2: And then we add on the independent crop, we've processed almost 1.1 million tons. In the first eight months of this year, pricing for the first eight months is actually very similar to the pricing for the first six months, which is very encouraging.

Speaker #2: And so, hopefully, you get a good sense, with two-thirds of the year now under our belts, that we're moving ahead with great confidence into the second half.

Speaker #2: ...of the year. And the final slide just tries to draw it all together, to give you a summary of where we stand in terms of the first half, but, as I say, looking further forward as well.

Matthew Coulson: The final slide just tries to draw it all together to give you a summary of where we stand in terms of the H1, but as I say, looking further forward as well. Again, as Peter said at the outset, we are very pleased, we are very proud of what has been achieved in the H1, what everybody across our Indonesian team has been able to deliver. We look forward with much confidence into the H2 of the year as well. I think perhaps at this point, that would have been our half-hour presenting to you pretty much up. Now is a good point to pause and turn it over to questions.

Speaker #2: Again, as Peter said at the outset, we're very pleased—we're very proud of what's been achieved in the first half and what everybody across our Indonesian teams have been able to deliver.

Speaker #2: And we look forward with much confidence into the second half of the year as well. I think perhaps, at this point, with our half hour presenting to you pretty much up, now is a good point to pause and turn it over to questions.

Speaker #1: That's great. Thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the Q&A tab situated at the top right corner of your screen.

[Company Representative] (MP Evans Group): That is great. Thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the Q&A tab situated on the top right corner of your screen. While the company take a few moments to review those questions submitted today, I would like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via our investor dashboard. Peter, at this point, if I may now hand back to you to chair the Q&A, kindly ask you to read out the questions where appropriate to do so, and I will pick up from you at the end. Thank you.

Operator: That is great. Thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the Q&A tab situated on the top right corner of your screen. While the company take a few moments to review those questions submitted today, I would like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via our investor dashboard. Peter, at this point, if I may now hand back to you to chair the Q&A, kindly ask you to read out the questions where appropriate to do so, and I will pick up from you at the end. Thank you.

Speaker #1: While the company takes a few moments to review those questions submitted today, I would like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via our investor dashboard.

Speaker #1: And Peter, at this point, if I may, I'll now hand back to you to chair the Q&A. Kindly ask you to read out the questions where appropriate to do so, and I'll pick up from you at the end.

Speaker #1: Thank you.

Speaker #2: Thank you very much again, Alex. Well, thank you so much for submitting the questions that you have, and indeed, one or two of you have very kindly congratulated us on our results, which we appreciate very much.

Peter Hadsley-Chaplin: Thank you very much again, Alex. Well, thank you so much for submitting the questions that you have, and indeed one or two of you that very kindly congratulated us on our results, which we appreciate very much. Thank you. I think we can just take them as they came, as it were, in chronological order, because each one is a little different. The first one is quite a long one, so I might just summarize. I think essentially, it is asking about the threat from synthetic vegetable oils, synthetic palm oil specifically which has received a certain amount of press in the UK, which is very interesting, and whether this does represent a threat to palm oil, and indeed to prospects for importing palm oil into the UK. Matthew, perhaps you might like to comment on that. I think we are very happy to do so.

Speaker #2: Thank you. I think we can just take them as they came, as it were, in chronological order, because each one is a little different.

Speaker #2: The first one is quite a long one, so I might just sort of summarize. I think, essentially, it is asking about the threat from synthetic vegetables—synthetic palm oil specifically—which has received a certain amount of press in the UK, which is very interesting.

Speaker #2: And whether this does represent a threat to palm oil, and indeed to the prospects for importing palm oil into the UK. And Matthew, perhaps you might like to comment on that.

Speaker #3: I think we're very happy to do so. I think what's embedded in the question, actually— as I read what's been written there— is a very good answer too, actually.

Matthew Coulson: I think embedded in the question actually as I read what has been written there, is a very good answer, too, actually, which is to provide the context for everybody here, with some observations saying that it tends to be the case at the moment that it seems that the scale of ambition from synthetic producers seems to be relatively small and seems also to be focused very much on higher value-added products. Given the overall scale of the vegetable oil market, which is some 200-plus million tons per annum, we do not particularly see this as a threat as such, given the way in which we go about doing what we are doing. So whilst we ought to get complacent about these things, we will continue to monitor what is going on in that space.

Speaker #3: Which is to sort of provide the context for everybody here with some observations, saying that it tends to be the case at the moment that it seems the scale of ambition from synthetic producers seems to be relatively small.

Speaker #3: It also seems to be focused very much on higher value-added products, and given the overall scale of the vegetable oil market, which is some 200-plus million tons per annum, we don't particularly see this as a threat as such.

Speaker #3: Given the way in which we go about doing what we’re doing, so what—we’re obviously, again, complacent about these things—we will continue to monitor what’s going on in that space.

Speaker #3: But right now, we don't really see this as a concern for what we're doing and the way in which we're going about our business.

Matthew Coulson: But right now, we don't really see this as a concern for what we're doing and the way in which we're going about our business.

Speaker #2: Right. Next question. With the new acquisition, how many new employees will be joining us, and at the planted land, what is the level of maturity? How long will it take the acquisition to reach its full potential?

Peter Hadsley-Chaplin: Right. Next question. With the new acquisition, how many new employees will be joining us? Of the planted land, what is the level of maturity, and how long will it take the acquisition to reach its full potential? Do you want to tackle that one again, Matthew?

Speaker #2: Do you want to talk about one again, Matthew?

Speaker #3: Of course. Yeah, absolutely. So, taking each part, it's a relatively small number of people joining us, as I'm sure you would expect, because there's a relatively small amount of currently planted land, and indeed, not all of that planted land is being actively harvested right now. As I say, some of it needs a very high degree of rehabilitation.

Matthew Coulson: Of course. Yeah, absolutely. Taking each part, there's a relatively small number of people joining us as I'm sure you would expect because there's a relatively small amount of currently planted land. Indeed, of that planted land, not all is being actively harvested right now. As I say, some of it needs a very high degree of rehabilitation. In terms of maturity and reaching full potential, encouragingly, the majority of planted land is still relatively young, which is exciting for the future. In terms of full potential for us, our ambition is to do the planting of the available area as quickly as we can. 3,000 hectares is not going to be planted tomorrow, clearly.

Speaker #3: In terms of maturity and reaching full potential, encouragingly, the majority of the planted land is still relatively young, which is exciting for the future.

Speaker #3: And in terms of sort of full potential for us, our ambition is to do the planting of the available area as quickly as we can. Three thousand hectares—it's not going to be planted tomorrow, clearly, but nonetheless we're excited about the opportunity, and to focus on how we can then deploy our resources to it to ensure that we can work through a planting program in a very sensible but nonetheless speedy program to ensure.

Matthew Coulson: Nonetheless, we're excited about the opportunity and to focus on how we can then deploy our resources to it to ensure that we can work through a planting program in a very sensible but nonetheless speedy program to ensure.

Speaker #2: Thanks, Matthew. That's our take on this one. Possibly there's some system for Matthew, but what income, and for how much longer will the burden properties project deliver?

Peter Hadsley-Chaplin: Thanks, Matthew. Perhaps I'll take this one. Possibly this one is for Matthew. What income and for how much longer will the Bertam Properties project deliver? Just to give a tiny bit of background for those shareholders or those people joining us who aren't familiar with Bertam Properties, it represents the last vestiges of what we used to own in Malaysia. Going back 20 years or more, we owned a number of small Malaysian plantations, some of which had some real estate development value, and we just cash in on that by selling those plantations and using the proceeds to fund our major expansion into Indonesia's sustainable palm oil. But we did keep a 40% share of the Bertam Properties project, Bertam being a former estate owned by the group.

Speaker #2: Just to give a tiny bit of background to those shareholders or those people joining us who aren't familiar with Burton Properties: it represents the last vestiges of what we used to own in Malaysia. Going back 20 years or more, we owned a number of small Malaysian plantations, some of which had some real estate development value, and we did cash in on that by selling those plantations and using the proceeds to fund our major expansion into Indonesia's sustainable palm oil.

Speaker #2: But we did keep a 40% share of the Burton properties project, Burton being a former estate owned by the group. That has been developed from essentially a rubber and oil palm plantation over the last 30 years into a new mixed development project of housing, shops, industrial areas, golf course, etc.

Peter Hadsley-Chaplin: And that has been developed from essentially a rubber and oil palm plantation over the last 30 years into a new mixed development project of housing, shops, industrial areas, golf course, et cetera. We have never had to put a single cent into it. We've only taken money out by way of dividends. The original land area was some 2,000 hectares. It's now less than 200 hectares. So it is being developed out, and we take the income by way of dividend, which is relatively modest these days, about $1 to $1.5 million per annum would be our share, roughly. I think it's fair to say were there an opportunity to sell our share at what would seem to be a reasonable price, we would look at that, but in the meantime, it will continue to be developed out, and ultimately, it will be fully developed out.

Speaker #2: We have never put a had to put a single cent into it. We've only taken money out by way of dividends the dividend the original land area was some 2,000 hectares it's now less than 200 hectares so it is being developed out and we take the income by way of dividend which is relatively modest these days about one to one and a half million dollars per annum is would be our share roughly.

Speaker #2: I think it's fair to say that, whether an opportunity to sell our share arises at a reasonable price, we would look at that. But in the meantime, it will continue to be developed out, and ultimately it will be fully developed out.

Speaker #2: But that might still take several more years. Yeah. Next question. Independent crops have already fallen from 16% to 12% of mill throughput as your own crop has grown.

Peter Hadsley-Chaplin: But that might still take several more years. Yep. Next question. Independent crop has already fallen from 16% to 12% of mill throughput as your own crop has grown. Correct. Once that remaining independent crop has largely been displaced, how much genuine spare processing capacity remains across the six mills for the additional production coming from immature acreage, and in Kota Bangun before further mill CapEx is required? Good question. Well, do you want to answer that one, Luke? Since you had your hand up.

Speaker #2: Correct. Once that remaining independent crop has largely been displaced, how much genuine spare processing capacity remains across the six mills for the additional production coming from immature acreage and Kota Bharu, before further mill capex is required?

Speaker #2: Good question. Well, do you want to answer that one, Luke? Since you had the last one—yes.

Speaker #3: Yeah, so I mean, I think, as you say, that there is a sort of pathway that's being followed at the moment around that independent crop. But roughly, we think there's about anywhere between 15,000 to 20,000 additional hectares' worth of land that could go into our existing mills before we'd have to think about another one.

Luke Shaw: Yeah. I think, as you say, that there is a sort of pathway that's being followed at the moment around that independent crop. But roughly, we think there's about anywhere between sort of 15,000 to 20,000 additional hectares worth of land that could go into our existing mills before we'd have to think about another one. So that gives you an idea, roughly, of kind of how much capacity is there. And that's, of course, what we're looking to do as we move forward strategically, is to kind of bring that own crop into our mills. So it's somewhere in the region of 15,000 to 20,000 hectares that could be processed without having to build another mill.

Speaker #3: So that gives you an idea roughly of kind of how much capacity it is there and that's of course what we're looking to do as we move forward strategically is to kind of bring that overcrop into our mills.

Speaker #3: So it's somewhere in the region of 15,000 to 20,000 hectares that could be processed without having to build another mill.

Speaker #2: And of course the only area where we don't have a mill is at Simpankiri where we have about four and a half thousand hectares and it would be good one day to be able to process everything all the crop that we produce rather than 96 or 97% of it.

Peter Hadsley-Chaplin: And of course, the only area where we do not have a mill is at Simpang Kiri, where we have about 4,500 hectares. It would be good one day to be able to process everything, all the crop that we produce rather than 96% or 97% of it. Ideally, we would like to buy a little bit more hectarage around Simpang Kiri, but one would look certainly ideally to have that mill around Simpang Kiri as well. Next one, purchase of shares for cancellation has been modest in the H1. Is there any reason for this? Certainly, it is a balance. I do not know whether you want to comment, Matthew, in terms of the specifics of the share buyback.

Speaker #2: Ideally, we'd like to buy a little bit more hectarage around Simpankiri, but one would look, certainly ideally, to have that mill around Simpankiri as well.

Speaker #2: Next one. Purchase of shares for cancellation has been modest in the half-year. Is there any reason for this? Certainly, it's a balance.

Speaker #2: I don't know whether you want to comment, Matthew, in terms of the specifics of the share buyback.

Speaker #3: Precisely as Peter says, it's a question of finding the right balance for capital allocation. As we've sought to indicate, we're extremely enthusiastic about seeking to continue on our growth pathway and focusing our attention there.

Matthew Coulson: Precisely as Peter says, it is a question of finding the right balance for capital allocation. As we have sought to indicate, we are extremely enthusiastic about seeking to continue on our growth pathway, and focusing our attention there. Of course, we continue to be very much committed to our progressive approach to shareholder returns by way of dividends. We, of course, absolutely recognize the value in buybacks, and want to do that as well. But as always with these things, it is about striking the right balance. It is simply the case there of seeking to try and make sure we have the right mixture of these things in terms of deployment of capital.

Speaker #3: Of course, we continue to be very much committed to our progressive approach to shareholder returns by way of dividends, and of course, absolutely recognize the value in buybacks and want to do that as well.

Speaker #3: But as always with these things, it's about striking the right balance, and it's simply the case there of seeking to try and make sure we have the right mixture of these things in terms of deployment capital.

Speaker #2: Next one is: how do the extraction rates vary across the six mills? Luke, do you want to go?

Peter Hadsley-Chaplin: Next one is how do the extraction rate varies across the six mills? Luke, do you want to go?

Speaker #3: Yeah. I mean, we have one mill at the top end of the range—our Mr. Alice mill. All of the extraction rates for each mill, I should say, are available in the interim report, but we have one mill that's doing north of 25%—the Mr. Alice.

Luke Shaw: Yeah. We have one mill at the top end of the range, our Musi Rawas mill. All of the extraction rates for each mill, I should say, are available in the interim report. But we have one mill that is doing north of 25% at Musi Rawas. That is a fantastic achievement from the team there. That goes down to those sort of 22 high 20s, I think, at one of our mills in Kota Bangun. That is the mill where we process the most independent fruit. So, we do point to some of the extraction rates at one or two of our mills where you can really see, again, the size of the prize where, when we are processing our own fruit, we can really see improvements in that extraction rate towards 24% or 25% levels. Sometimes how much that independent fruit can sometimes bring that level down.

Speaker #3: That's a fantastic achievement from the team there, and that goes down to, as those sort of 22, high 22s, I think, at one of our mills in Kota Bharu. And that's the mill where we process the most independent fruit.

Speaker #3: So, we do point to some of the extraction rates at one or two of our mills, where you can really see again the size of the prize. When we're processing our own fruit, we can really see improvements in that extraction rate towards 2024–2025 levels.

Speaker #3: And sometimes, how much that independent fruit can sometimes bring that level down. But it's a range between 22 to 25 across the six mills.

Luke Shaw: But it is a range between 25% to 22% across the six mills.

Speaker #2: The next question is regarding the possibility of our acquiring or merging with another UK-listed plantation company as a viable route to increasing production. We are asked this question from time to time—about whether we would look to merge—with, well, there are only two other listed palm oil companies in the UK. It's something one would consider, but it's all about shareholder value, and certainly, we believe that paddling our own canoe represents the best shareholder value and is the right way to proceed for now. We're looking at other ways of growing—through acquisition, through share buybacks, through other means.

Peter Hadsley-Chaplin: The next question is regarding the possibility of our acquiring, merging with another UK-listed plantation company as a viable route to increasing production. We are asked this question from time to time about whether we would look to merge with, well, there are really two other listed palm oil companies in the UK. Something one would consider, but it is all about shareholder value, and certainly we believe that paddling our own canoe represents the best shareholder value and is the right way to proceed for now. We are looking at other ways of growing through acquisition, through share buybacks, through other means. Next one. I think you have no intention of using the BMD, which is the Malaysian Commodities Exchange futures market, palm oil futures.

Speaker #2: Next one: I think you have no intention of using the BMD, which is the Malaysian Commodities Exchange futures market for palm oil futures. But will you enshrine this, so that a change of this wise policy will require an agreement by the shareholders, to give comfort in the years ahead when inevitably there will be different management?

Peter Hadsley-Chaplin: Well, will you enshrine this so a change of this wise policy will require an agreement by the shareholders to give comfort in the years ahead when inevitably there will be different management? Well, interesting one. We have always made clear that we have a natural hedge in the fact that palm oil is harvested every day of the year. That by not selling forward, we obtain the average over time, by selling on a sometimes daily, weekly, monthly basis, rather than looking to fix forward sell, try to second-guess the market. Whoever happens to be at the top at the time, I would imagine, will look to the benefits that this policy has brought about in the past. The increase in sustainably produced palm oil is impressive.

Speaker #2: Well, interesting one. We've always made clear that we have a natural hedge in the fact that oil palm is harvested every day of the year, and that by not selling forward, we obtain the average over time by selling on a sometimes daily, weekly, or monthly basis, rather than looking to fix, forward sell, or try to sort of second-guess the market. And whoever happens to be at the top at the time, I would imagine, will look to the benefits that this policy has brought about in the past.

Speaker #2: The increase in sustainably produced palm oil is impressive. However, what percentage of sustainable palm oil is a realistic target if it is not 100%, and what is the time scale to get to that point?

Peter Hadsley-Chaplin: However, what percentage of sustainable palm oil is a realistic target if it is not 100%, and what is the timescale to get to that point? Matthew, do you want to answer that?

Speaker #2: Matthew, do you want to answer that?

Speaker #3: Yeah, of course. We've deliberately not bound ourselves with a numerical or time-bound target for this. However, again, it's all entirely interlinked with what we're seeking to achieve with the mix change of inputs to our mills.

Matthew Coulson: Yeah, of course. We've deliberately not bound ourselves with a numerical or time-bound target for this. However, it again is all entirely interlinked with what we're seeking to achieve with the mix change of inputs to our mills. As we work through this process, reducing and indeed ideally eliminating on a mill-by-mill basis, and it is a mill-by-mill analysis, third party inputs to our mills. On a mill-by-mill basis, we will become 100% sustainable. We have to be conscious of thinking this through carefully and analyzing the right decision on a mill-by-mill basis. Ideally, there will become a time where we get to exactly what you described, being 100% certified sustainable output.

Speaker #3: And as we work through this process of reducing and indeed ideally eliminating on a mill by mill basis and it is a mill by mill analysis third party inputs to our mills so on a mill by mill basis we will become 100% sustainable.

Speaker #3: But we have to be conscious of thinking this through carefully and analyzing the right decision on a mill-by-mill basis. Ideally, there will come a time where we get to exactly what you describe: being 100% certified sustainable output.

Speaker #2: Do you expect Super El Niño to have any impact on your yields? Do you want to take that one as well?

Peter Hadsley-Chaplin: Do you expect Super El Niño to have any impact on your yields? Do you want to take that one as well?

Matthew Coulson: Yes. Yes is the answer. Of course, there's been a lot of coverage of what's been going on with global weather patterns this year. We have experienced some abnormally dry conditions in some of our locations, not all, but some of our locations, during the last few months. We think it's unlikely to have a significant or material impact on our yields in 2026 because there's always a delay factor associated with the way in which palms, and indeed the crop on the palms, mature, ripen, and are ready for harvest over a relatively long period of time. Previous experience teaches us that you tend to see that delayed effect. The last time there was a very big El Niño, which was really 2015 into 2016, we saw a reduction in our crop by about 6%, just to give you a flavor.

Speaker #3: Yes, yes, is the answer. Of course, there's been a lot of coverage of what's been going on with global weather patterns this year, and we have experienced some abnormally dry conditions in some of our locations— not all, but some— during the last few months.

Speaker #3: We think it's unlikely to have a significant, material impact on our yields in 2026, because there's always a delay factor associated with the way in which palms—and indeed, the crop on the palms—mature, ripen, and are ready for harvest over a relatively long period of time.

Speaker #3: Previous experience teaches us that you tend to see that delayed effect. The last time there was a very big El Niño—which was really sort of 2015 into 2016—we saw a reduction in our crop by about 6%, just to give you a flavour.

Speaker #3: The last time we saw a smaller El Niño, which was 2023 into 2024, our crop was rather going up. A lot of our crop in affected areas was level, so again, that gives you a sort of parameters of these things.

Matthew Coulson: The last time we saw a smaller El Niño, which was 2023 as 2024, our crop rather than going up, a lot of our crop in affected areas was level. Again, that gives you some kind of parameters of these things. Also what you quite often see, if there is an El Niño effect where supply is restricted, not just for our areas, but of course it affects far more broadly within the key producing areas in Indonesia and Malaysia. Since there is that restriction of supply, you can quite often see a compensatory impact on pricing. From a net impact perspective, you may find financially you end up not that affected overall. We will obviously continue to keep people updated on that as the position becomes clearer and as indeed we move into 2027.

Speaker #3: Also, what you quite often see if there is an El Niño effect—where supply is restricted not just for our areas, but of course it affects far more broadly within the key producing areas in Indonesia and Malaysia—is if there is that restriction in supply, you can quite often see a compensatory impact on pricing. So, from a net impact perspective, you may find, financially, you end up not that affected overall.

Speaker #3: We will obviously continue to keep people updated on that as the position becomes clearer and as, indeed, we move into 2027.

Speaker #1: That's great, Peter. Matthew Luke from HHM back in there, and thank you for addressing all those questions from investors today. But Peter, before I redirect investors to provide you with feedback—which I know is particularly important to yourself and the company—could I please just ask you for a few closing comments?

[Company Representative] (MP Evans Group): That is great, Peter, Matthew, Luke. Information crammed back in there, and thank you for addressing all those questions from investors today. But Peter, before I redirect investors to provide you with their feedback, which is most particularly important to yourself and the company, could I please just ask you for a few closing comments?

Operator: That is great, Peter, Matthew, Luke. Information crammed back in there, and thank you for addressing all those questions from investors today. But Peter, before I redirect investors to provide you with their feedback, which is most particularly important to yourself and the company, could I please just ask you for a few closing comments?

Speaker #2: Well, really, just to say thank you so much for joining us, and thank you for your excellent questions. We look forward to seeing you again, either in person or online, before too long.

Peter Hadsley-Chaplin: Well, really just to say thank you so much for joining us and thank you for your excellent questions. And we look forward to seeing you again either in person or online before too long. So thank you very much.

Speaker #2: So thank you very much.

Speaker #1: Fantastic. Thank you once again for updating investors today. Could I please ask investors not to close the session as you now be automatically redirected to provide your feedback which will.

[Company Representative] (MP Evans Group): Fantastic. Thank you once again for updating investors today. Could I please ask investors now to close this session, as you will now be automatically redirected to provide your feedback, which will help-

Operator: Fantastic. Thank you once again for updating investors today. Could I please ask investors now to close this session, as you will now be automatically redirected to provide your feedback, which will help-

Browse all earnings call transcripts

Q2 2026 MP Evans Group PLC Earnings Call

Request TrialDemo

MP Evans Group

Earnings