Dekel Agri-Vision reports strong Q1 for palm oil, cashews

10th Apr 2025 12:43

(Sharecast News) - Dekel Agri-Vision reported a strong first-quarter performance across both its palm oil and cashew operations in Côte d'Ivoire on Thursday, with palm oil revenue up more than 45% year-on-year and the cashew segment delivering substantial operational improvements.

The AIM-traded firm said that at the Ayenouan palm oil operation, crude palm oil production fell 4.6% to 10,982 tonnes, but that was offset by a 4.7% increase in extraction rates to 22.2% and an 11% rise in sales volumes.

Crude palm oil prices rose 27% to €969 per tonne, driven by tight local inventories and strong demand, which pushed prices closer to international benchmarks.

Palm kernel oil sales also surged, with volumes up 217% and average prices increasing by 66%, supporting group profitability.

The company also highlighted a significant turnaround at its Tiebissou cashew processing plant, where raw cashew nut processing volumes rose by 219.6%, resulting in a 322% increase in cashew production.

Cashew sales prices rose by nearly 85% compared to the same period last year, and the operation was now on track to achieve EBITDA profitability in 2025.

Processing efficiency also improved due to equipment upgrades completed in late 2024, with higher extraction rates and better whole-to-broken nut ratios.

A record 451 tonnes of raw cashew nuts were processed in March, and the company said it expected to reach its full-year target of 6,000 to 7,000 tonnes, with further capacity to be added in the second half of the year.

Dekel said that market conditions for both palm oil and cashews remained supportive, and that the operational progress made in the first quarter reinforced its confidence in delivering strong results for the full year.

"With first quarter 2025 palm oil revenue estimated to be over 45% higher compared to the first quarter of 2024, driven by a 27% lift in crude palm oil prices and a 217% surge in palm kernel oil prices, our palm oil operation continues to deliver solid profitability," said executive director Lincoln Moore.

"Our cashew operation has delivered a step-change in performance in the first quarter, with production up 322% and pricing up 78.5% compared to the first quarter of 2024.

"We are firmly on track for our first EBITDA-positive year - a key milestone in returning value to our shareholders."

At 1018 BST, shares in Dekel Agri-Vision were up 5.33% at 1.11p.

Reporting by Josh White for Sharecast.com.