Half-year Results

M.P. Evans, a producer of sustainable Indonesian palm oil, announces its unaudited interim results for the six months ended 30 June 2026.

HIGHLIGHTS

• 8% increase total crop processed - 2026: 798,200 tonnes, 2025: 737,700 tonnes
• 11% increase in total CPO production - 2026: 192,300 tonnes, 2025: 172,800 tonnes
• 16% increase in certified sustainable production - 2026: 151,800 tonnes, 2025: 131,300 tonnes
• 1% increase in mill-gate CPO price - 2026: US$873 per tonne, 2025: US$868 per tonne
• 8% reduction in cost of Group palm product - 2026: US$409 per tonne, 2025: US$446 per tonne
• 25% increase in gross profit - 2026: US$78.9 million, 2025: US$63.4 million
• 21% increase in earnings per share - 2026: 86.5 pence, 2025: 71.7 pence
• 39% increase in interim dividend per share - 2026: 25 pence, 2025: 18 pence
• 61% increase in Group cash - 2026: US$113.5 million, 2025: US$70.5 million

POST PERIOD-END HIGHLIGHTS

• New planted and plantable land acquired close to Group's Kota Bangun estate
• Continuation of strong pricing for both CPO and PK into third quarter

M.P. Evans chairman, Peter Hadsley-Chaplin, commented on the results for the first half of 2026:

"The first half of 2026 has been particularly encouraging for the Group, with increases in both crop harvested and extraction rates in our mills. Our focus on efficiency helps us to push down unit costs, and our gross margin has improved again, leading to another increase in earnings. As a result, the board is confident in taking another step in the Group's progressive approach to dividends, and we will be paying a 25p per share interim dividend. Our recent land purchase provides us with further opportunities to increase crop into the medium and longer term."

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The crop harvested at Group estates increased by 14% in the first half of 2026, and unit production costs from the Group's own areas fell as volumes rose. Profit for the period, supported by a continuation of strong pricing, was up significantly, and earnings per share increased by 21% to 86.5p.

During the first half of 2026, the Group harvested 705,400 tonnes (2025 - 619,100 tonnes) of fresh fruit bunches ("ffb") from the hectarage managed at its estates in Indonesia. There were two main reasons for the increase. Firstly, there is a continuing trend of increasing yield per hectare as palms mature and as the Group's agronomic teams strive to maximise output per hectare in the Group's well-developed land. Secondly, over time the Group has worked to increase the area under management and, for the first time, during 2026 had over 70,000 hectares under cultivation throughout the period. Some of those areas are relatively new to the Group, and management teams are working to improve the quality of that land, and resultant cropping levels.

Harvested crop is split between the Group's own areas (537,500 tonnes) and areas managed on behalf of the Group's associated scheme smallholders (167,900 tonnes), where land is owned by local community co-operatives, but managed on their behalf by the Group. All areas are managed with the same commitment to excellence, achieving the same high yields.

As has been the case for many years, the Group supplements its own harvest with the purchase of crop from outside suppliers to be processed in its mills. The amount purchased from outside suppliers continued to reduce in the first half of 2026, representing only 12% of the total, as the Group processes a larger and larger proportion of its own, high-quality harvest.

The Group had six palm-oil mills operating throughout the period and those mills improved their production efficiency. The average oil-extraction rate ("OER") increased to 24.2% (2025 - 23.5%), a significant rise from an already strong rate in the previous year. The increase in the Group's own harvest being processed supported this, but in addition, the Group's management team worked hard to maximise efficiency and minimise mill losses. Whilst total crop processed, including that from outside suppliers, went up by 8% during the period, crude palm oil ("CPO") output, thanks to the improved extraction rate, increased by 11% to 192,300 tonnes (2025 - 172,800 tonnes).

The increase in the Group's own harvest has also resulted in an increase in certified sustainable output from the Group's mills, which totalled 151,800 tonnes of CPO in the first half of 2026 (2025 - 131,300 tonnes), up by 16%. This represents 79% of total production, or 82% of the output from Group mills.

Sales of CPO were made at an average price of US$873 per tonne in the first half of 2026, a little higher than the US$868 achieved in the same period in 2025. The palm-oil market continues to be robust, and prices available to the Group reflect that, notwithstanding a very brief period of uncertainty in May 2026 following an announcement from the government in Indonesia regarding planned changes to export mechanisms. Pricing for the Group's secondary product, palm kernels ("PK"), continued to be strong in 2026, with mill-gate prices for PK almost as high, on a per tonne basis, as those for CPO. The average PK selling price in the period was US$813 per tonne, up 9% on the US$747 per tonne in the first half of 2025.

The Group continued, during the first half of 2026, to strive to be an efficient producer of both CPO and PK. Unit cost per tonne of production from the Group's own areas fell to US$409, an 8% fall on the US$446 in the same part of 2025.

The combination of rising crop and production, strong pricing and cost efficiency resulted in an increase in profitability in the first half of the year. Gross profit went up by 25% to US$78.9 million (2025 US$63.4 million).

Dividends

Given the increase in Group profitability, and in line with the longstanding approach to progressive distributions, the board is declaring an increase to the interim dividend. The interim dividend will be 25p per share (2025 - 18p per share). This increase of 39% is larger than the increase in profitability at the mid-point in the year. As such, it should not be considered indicative of the board's plans for the year as a whole. Rather, the board is reviewing the ratio of interim to final dividends and may, over time, seek to make some adjustment to this balance.

Irrespective of any change in the payout ratio between interim and final amounts, the Group continues to generate encouraging margins, particularly as more and more production comes from its own harvest, and cash generation is strong. The board remains confident of the Group's prospects for the remainder of 2026 and into the medium and longer term.

Post balance-sheet event

As announced on 10 September 2026, the Group has recently completed the acquisition of additional planted and plantable land close to its existing Kota Bangun project in East Kalimantan. The Group has acquired PT Kalimantan Wahana Berjaya ("KWB") for US$2.0 million and, at the same time, been successful in securing the initial rights to an adjacent parcel of land known as Long Nah. KWB has 776 hectares planted to oil palm and the Group estimates that following a period of rehabilitation and further planting, there is the potential within the combined area to add a further 3,000 or more planted hectares to the Group's Kota Bangun project

RESULTS FOR THE PERIOD

Crops and production

Details of the Group's crops, production and extraction rates and average selling prices for the first half of 2026 are shown in the following table:

Mill-gate prices

The Group works in partnership, on a location-by-location basis, with palm-oil refiners based locally within Indonesia who purchase the Group's CPO for further processing. Similarly for the Group's secondary product, it works with local partners who purchase PK for onward crushing into palm-kernel oil. In both cases, the Group does not control the next stages in the supply chain beyond refining and crushing, but in most cases, the sustainable characteristics of the Group's output are important within that supply chain.

The Group sells its output on a regular basis, both as part of long-term contracting arrangements with key customers, and on an open tender basis, to ensure that the best prices are achieved. As a regular market participant, the Group does not, and has not for the long term, sought to fix prices forward.

During the first half of the year, despite a brief period of uncertainty on price following some announcements from the Indonesian government regarding changes to export arrangements for palm and other key commodities, CPO prices available to the Group remained strong throughout the period and were, on average, at similar levels to those achieved throughout 2025. The average mill-gate price for the Group's CPO during the first half was US$873 per tonne, 1% above the US$868 in the same part of 2025.

PK pricing continued be at encouraging levels in the first half of 2026, even higher than those achieved in the previous year. For the first time since the Group started to process and sell its own output, the average mill-gate price over a six-month period exceeded US$800 per tonne. On average, in the first half of 2026, the Group's mills received US$813 for PK sales, 9% higher than the US$747 in the first half of 2025.

Sustainability

The Group is a responsible producer of certified sustainable palm oil and, as described in the production section above, the volume of certified production increased significantly in the period. However, the Group's commitment to responsibility and sustainability is far more wide-ranging and this is demonstrated in depth in the latest sustainability report published by the Group in August 2026.

The Group pays close attention to both climate and nature as part of an integrated approach to environmental protection and building resilience into the Group's operations. Alongside this, the Group takes its social responsibilities seriously, recognising the important part it has to play within the communities alongside which it operates, supporting shared prosperity. All of this is underpinned by a commitment to good governance and building trust with stakeholders.

The Group's detailed sustainability report is available via the website at www.mpevans.co.uk/sustainability/sustainability-reports.

Costs

As an efficient producer of palm products, the Group has been committed over the long term to careful cost management, investing in smart agronomic and milling techniques that are beneficial for our people and for productivity. This was the case during 2026 as the Group continued to seek new innovations where appropriate, whilst at the same time recognising the benefits brought by our skilled and experienced workforce who can make a real difference to quality standards on a daily basis.

During the first half of 2026, the Group faced a number of cost pressures at its estates and mills. The Group continues to reward its staff in a fair and transparent manner and as wage rates increase, this feeds through into the Group's cost base. Also in 2026, the Group felt some cost pressures on key inputs, including fertiliser and fuel, although the Group's internal renewable energy supply from its mills helped to mitigate this. In addition, a weakening Indonesian rupiah partially offset some locally denominated increases whilst, more significantly, rising production helped to keep costs per unit of production well controlled. Overall, the net effect was a fall in cost per tonne of production from the Group's own areas, down from US$446 in the first half of 2025 to US$409 this year, a reduction of 8%.

Costs when purchasing crop for processing are inevitably higher, due to the commitment to pay a fair price to scheme smallholders, or the need to negotiate for purchases from third-party suppliers which inevitably do not yield as much oil and kernel as crop harvested by the Group. As a result, the combined cost per tonne, when considering all sources of crop for processing, increases when compared to the cost per tonne for only Group-owned areas. However, the combined cost per tonne also fell during the first half of the year, to US$514 (2025 US$553).

Planting and new areas

The Group's estate teams have worked hard over many years to establish high-quality plantings and productive estates, and the yield per hectare delivered in the first half of this year is clear evidence of the success of this approach. As the Group looks to future prosperity, one indicator is the amount of land that has been planted but is still to come into productivity. New palms, once planted, take between two and three years of further investment and careful cultivation prior to their first harvest. During the first half of 2026, the Group had just over 7,000 hectares of planted land under management that fell into this category, a clear indicator of future growth potential.

During the first half, and moving into the remainder of the year, the Group continues to seek out opportunities for further planting within its existing estates, subject to environmental assessments and to agreement with local community members. The pace of planting has been relatively slow in the first half of the year, with just under 100 new hectares planted. However, preparatory work has already taken place for some larger areas and, subject to favourable conditions, the pace should pick up in the second half of the year.

In addition, and looking further ahead, the addition of the new land at KWB and Long Nah acquired in September this year, has provided new opportunities for development. The area already planted at KWB amounts to 776 hectares. However, the Group estimates that the total developable area should be at least 3,000 hectares between the two properties, and this should provide a valuable source of crop to the Group's mills at Kota Bangun.

Associated companies

The Group has a 38% investment in an oil-palm plantation in Sumatra, PT Kerasaan Indonesia ("Kerasaan"). The Kerasaan estate, comprising 2,300 planted hectares, continued to perform well, albeit with a slightly lower crop than in the same period last year, and the Group recorded US$0.7 million as its share of Kerasaan's profit in the period (2025 US$0.6 million).

In Malaysia, the Group's 40%-owned property development company, Bertam Properties Sdn Berhad ("Bertam Properties"), made a good start to the year in an increasingly competitive environment. The Group's share of Bertam Properties' profit for the first half of the year was US$0.3 million (2025 US$0.1 million).

Result

Revenue increased by 9% in the first half of the year to US$196.3 million (2025 US$179.4 million), a lower increase than the 11% increase in production, even though prices were also up on last year. The main reason was that a small amount of production from the first half remained in stock at the end of June, and will benefit sales and profitability in the second half of the year. Gross margin increased once again, now standing at 40% for the Group as a whole, compared to 35% for the first half of last year and 38% for the year as a whole. Everyone involved in the Group's Indonesian operations should be proud of this achievement as it represents a significant milestone and reflects the quality and efficiency of the Group's operations and the contribution made by all involved. Typically, unit costs can be higher in the first half of the year (as was the case in 2025 when margin improved as the year progressed), notably due to the timing of fertiliser application and so, all other things being equal, the potential is there to achieve improving margins in the latter part of 2026.

The Group continued to keep tight control over administrative and other expenditure and, thanks to a biological gain arising in the first half of the year on the Group's unharvested crop, along with finance and other income, operating profit of US$78.1 million (2025 US$62.2 million) was only US$0.8 million lower than the gross profit of US$78.9 million (2025 US$63.4 million).

After accounting for tax, associate profits and profits attributed to the Group's minority partner, the profit retained by Group shareholders for the first half of the year was US$61.0 million, or 86.5p per share (2025 US$48.7 million or 71.7p), a record first-half result for the Group.

CURRENT TRADING AND PROSPECTS

The trend of increasing crop has continued as we move into the second half of the year. During the two months to August 2026, the total crop harvested from areas managed by the Group was 259,700 tonnes (2025 - 209,700 tonnes) a sizeable increase of 24% on the equivalent period in 2025 and, as can be seen from the above table, the year-to-date increase in harvest now stands at 16%. All Group estates are doing well compared to last year, and Simpang Kiri is starting to close the gap as it shows clear evidence of a strong recovery from the typhoon-related flooding.

The Group has continued to work with its key customers for CPO and PK and has received prices similar to those observed in the first half of the year. By the end of August, the eight-month average prices for its output had moved on to US$868 per tonne of CPO and US$799 per tonne of PK, only 1% and 2% different to the mid-year position. As previously reported, the Indonesian government is introducing a new approach to the export of palm products from Indonesia and the next phase of implementation came into force from the start of September 2026. The Group sells all its output domestically within Indonesia, and has not experienced any operational disruption, nor any noticeable change in the pricing it receives, as a result of the latest change.

Across Indonesia and more widely, there have been some changes in weather patterns observed in the first half of 2026 due to the emergence of El Niño conditions in the Pacific Ocean. This has resulted in lower-than-normal rainfall levels which may lead to a reduction in production levels across Indonesia and Malaysia, albeit with a time lag due to the way in which ffb are formed within oil palms. As can be seen from the table above, Group estates have continued to perform well as we move into the second half of the year, and the high-quality management on Group estates supports the ongoing resilience of the Group's cropping and production. Any changes to production levels in Indonesia and Malaysia may not be noticed until 2027. Should there be a fall in overall production, this may be balanced by an increase in commodity pricing. Management will continue to monitor the situation.

UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENT

For the six months ended 30 June 2026

*Prior year restatement - see note 33 in 2025 annual report for details regarding the restatement of retained earnings.

UNAUDITED CONDENSED STATEMENT OF CHANGES IN CONSOLIDATED TOTAL EQUITY

For the six months ended 30 June 2026

Restated*

*Prior year restatement - see note 33 in 2025 annual report for details regarding the restatement of retained earnings.

UNAUDITED CONDENSED CONSOLIDATED CASH-FLOW STATEMENT

For the six months ended 30 June 2026

NOTES TO THE INTERIM STATEMENTS

For the six months ended 30 June 2026

Note 1 General information

The financial information for the six-month periods ended 30 June 2026 and 2025 has been neither audited nor reviewed by the Group's auditors and does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. The financial information for the year ended 31 December 2025 is abridged from the statutory accounts. The 31 December 2025 statutory accounts have been reported on by the Group's auditors for that year, BDO LLP, and have been filed with the Registrar of Companies. The report of the auditors thereon was unqualified and did not contain a statement under section 498(2) or (3) of the Companies Act 2006, nor did it contain any matters to which the auditors drew attention without qualifying their audit report.

Note 2 Accounting policies

The consolidated financial results have been prepared in accordance with International Financial Reporting Standards (IFRS and IFRIC interpretations) issued by the International Accounting Standards Board (IASB), and with those parts of the Companies Act 2006 applicable to companies preparing accounts under IFRS, as adopted by the UK.

The accounting policies of the Group follow those set out in the annual financial statements at 31 December 2025. The Group has made a number of critical accounting judgements and key estimates in the preparation of this interim report, and they remain consistent with those set out in note 3(r) to the 2025 annual financial statements.

This condensed interim financial information should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2025.

Note 3 Segment information

The Group's reportable segments are distinguished by location and product: Indonesian oil-palm plantation products in Indonesia and Malaysian property development.

Subsequent to 30 June 2026, the board has declared an interim dividend of 25p per 10p share. The dividend will be paid on or after 6 November 2026 to those shareholders on the register at the close of business on 9 October 2026.

Note 5 Share capital

During the period, in anticipation of the exercise of share options, the Company issued 100,000 10p shares for US$13,000 cash consideration.

Note 6 Analysis of movements in cash flow

Note 8 Post balance-sheet event

As announced on 10 September 2026, the Group has recently completed the acquisition of additional planted and plantable land close to its existing Kota Bangun project in East Kalimantan. The Group has acquired PT Kalimantan Wahana Berjaya ("KWB") for US$2.0 million and, at the same time, been successful in securing the initial rights to an adjacent parcel of land known as Long Nah. KWB has 776 hectares planted to oil palm and the Group estimates that following a period of rehabilitation and further planting, there is the potential within the combined area to add a further 3,000 or more planted hectares to the Group's Kota Bangun project.