Dekel Agri-Vision (LON:DKL), the West African-focused agricultural business, continues to deliver encouraging performance in both its palm oil and cashew operations, according to the latest update from Zeus Capital.
In its April production update, Dekel confirmed that palm oil prices remain at historically high levels, with crude palm oil (CPO) priced at €964 per tonne, significantly up from €777 per tonne in April 2024. This strong pricing, coupled with stable production levels, has helped push year-to-date revenues in the palm oil division 30% ahead of the previous year.
Dekel is also making strides in its cashew processing business. Thanks to the successful installation of new equipment in the second half of 2024, production surged by more than four times in the first quarter of 2025 compared to the same period last year. April’s update confirms that this operational progress has continued, putting the cashew division on track to achieve its first EBITDA profit in the full year 2025. Dekel’s peeled cashew pricing remains strong at €5,800 per tonne, significantly higher than €3,250 per tonne in the prior year.
Charlie Cullen, Investment Research Analyst at Zeus Capital, commented, “Today’s update reflects a continuation of positive trading for Dekel, with its palm oil business benefiting from historically high prices and positive momentum in its recently commissioned cashew plant.” He further noted the significance of these developments, adding, “With execution risk in bringing cashew production up to full capacity now reducing, we view Dekel as increasingly well placed to deliver significantly improved results from the cashew business, contributing to strong cash generation and the ability to pay reduce levels of debt over time.”
Zeus Capital’s forecasts indicate that Dekel is on track to process approximately 1,500 tonnes of cashews this year, potentially generating around €0.8 million in profit from this division alone. This is expected to be supported further by the addition of more processing capacity in the second half of 2025.
On a Final Note
Dekel Agri-Vision’s combination of robust palm oil pricing and accelerated cashew production signals a promising outlook for the remainder of the year. With improving operational performance and a clear path to profitability in its cashew business, Dekel is well positioned to build on this momentum and strengthen its financial footing in the months ahead.
