Dekel Agri-Vision (LON:DKL) has delivered a reassuring Q1 production update, with the latest research note from Zeus highlighting improving momentum across both of the company’s main divisions, palm oil and cashews.
The Zeus note, written by Research Analyst Charlie Cullen, describes the update as showing “a steady performance in both parts of the business”, with palm oil volumes recovering as the high season begins and cashew production showing a strong year-on-year improvement.
For investors and market watchers, the key message is that Dekel appears to be moving in line with Zeus’ full-year expectations, despite a slower start in January and February. The company’s palm oil operation saw crude palm oil production finish Q1 4.9% behind the same period in 2025, but that masks a notable recovery through the quarter. Zeus notes that January production was 33% behind the prior year and February was 17% behind, before a much stronger March helped narrow the gap.
Pricing also remains a supportive factor. Dekel reported an average crude palm oil price of €968 per tonne for Q1, flat on the prior year and described by Zeus as “well above historical levels”. This matters because stronger pricing can help offset weaker volumes, although Zeus rightly notes that full-year performance will still depend on local fruit yields and market pricing over the rest of the year.
Cashews also provided a positive point in the update. Production increased by 73.5% compared with Q1 2025, following remediation work and additional equipment installed last year. Zeus says the cashew division is now “on an upwards trajectory”, with inventories replenished after earlier constraints around raw cashew nut availability ahead of the buying season.
Research Analyst Charlie Cullen wrote: “With both of Dekel’s divisions trending in line with full year forecasts and showing strong improvements since the beginning of this year, we view today’s announcement as a reassuring update on trading and look forward to further updates as the year develops.”
Q1 and forecast highlights from the Zeus note include: <ul> <li>Crude palm oil pricing averaged €968 per tonne in Q1, flat year on year.</li> <li>Crude palm oil volumes were 4.9% lower than Q1 2025, after a stronger March recovery.</li> <li>Cashew production increased 73.5% against Q1 2025.</li> <li>Zeus left its forecasts unchanged following the update.</li> <li>Zeus forecasts revenue of €39.3m for FY26, rising to €42.6m in FY27.</li> <li>FY26 EBITDA is forecast at €3.7m, increasing to €4.5m in FY27.</li> <li>Zeus expects adjusted PBT to improve from a €3.0m loss in FY25 to a €2.3m loss in FY26 and a €1.4m loss in FY27.</li> </ul>
One important point in the note is that Zeus has already adjusted its forecasts to a more conservative basis. For FY26, Zeus now assumes 135,000 tonnes of palm oil fresh fruit, compared with a 158,000-tonne average for Dekel since 2016. This gives the current forecasts a more cautious framework, particularly given the natural variability in agricultural output.
Zeus’ view is that Dekel is “well on track for revised expectations at this early stage in the year”. The broker also points to longer-term optionality in cashews, where incremental capacity increases may be possible with relatively low levels of capital expenditure.
On a Final Note, Dekel Agri-Vision’s Q1 update appears to show a business recovering from a weaker start to the year, with palm oil volumes improving into the high season and cashew production building on operational improvements made last year. While agricultural performance remains exposed to yield and pricing movements, the latest research note from Zeus presents the update as a steady and reassuring step forward.
