• Price growth continues in July and August
• Broker lifts earnings forecast by 61 per cent
Inflation in commodities pricing might be a headache for food retailers, but it has been a boon for palm oil maker MP Evans (MPE). The company’s operating profit of $41.3 million (£29.9m) for the first half was a six-fold increase on the same period last year, and was 32 per cent higher than its total profit for the whole of last year.
Crude palm oil prices have surged this year, up 72 per cent, including cost, insurance and freight, to $1,115 per tonne in Rotterdam. Although MP Evans’ mill gate price increase of 34 per cent to $724 per tonne was much lower (due to higher export levies and taxes paid in Indonesia, where its plantations are based), it upped first-half processing by 28 per cent to 702,300 tonnes and the higher volumes brought down costs.