Dekel Agri-Vision Reports Strong Palm Oil Production Growth in May and Stable Cashew Operations (DKL)

Dekel Agri-Vision Reports Strong Palm Oil Production Growth in May and Stable Cashew Operations (DKL)

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Dekel Agri-Vision (LSE:DKL) delivered a strong performance from its Ayenouan palm oil project in Côte d’Ivoire during May, with crude palm oil production increasing 31.9% year on year. The operation also achieved an improved extraction rate of 22.3%, reflecting enhanced processing efficiency during the month.

The company said local crude palm oil selling prices remained robust, although they continued to trade at a discount to elevated international market levels. Palm kernel oil prices also remained steady, supporting expectations for a solid first-half performance from the palm oil division despite the beginning of the sector’s seasonally weaker production period.

At the Tiebissou cashew processing facility, approximately 650 tonnes of raw cashew nuts were processed during May. Management reported stable sales volumes and pricing, supported by continued demand across its target markets. The steady performance of the cashew business complemented the strong results from the palm oil segment and contributed to the group’s diversified revenue base.

Dekel said the combination of improving palm oil production and consistent cashew operations provides a solid foundation for future growth as it continues to expand its agricultural footprint across West Africa. The company remains focused on developing multiple agribusiness activities to reduce reliance on a single commodity and strengthen long-term earnings potential.

While the group’s outlook continues to be influenced by profitability challenges and weaker technical indicators, management believes recent operational progress and positive corporate developments offer encouragement for future improvement. Valuation metrics remain under pressure due to negative profitability measures, but the company continues to pursue initiatives aimed at enhancing performance across its core businesses.

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Source: Online/GFMM