Dekel Agri-Vision (LSE:DKL) reported a strong operational performance for the first half of 2026, with both its palm oil and cashew divisions recording significant growth in Côte d'Ivoire. At the Ayenouan palm oil operation, fresh fruit bunch throughput increased by 11.5%, driving a 7.3% rise in crude palm oil production and a 5.0% increase in sales volumes, with almost all output successfully sold into the resilient domestic market. Palm Oil Business Positioned for Stronger Second Half Average palm oil prices remained broadly unchanged from a year earlier, although elevated international benchmark prices continue to indicate potential for higher local pricing as seasonal production slows later in the year. Palm kernel oil volumes declined during the period as kernel inventories increased. However, management expects these stocks to be processed during the low-production season, supporting improved palm kernel oil production and sales in the second half of the year. Cashew Division Records Rapid Expansion The company's cashew processing facility at Tiebissou delivered particularly robust growth during the period. Raw cashew nut processing rose by 45.7%, finished cashew production increased by 82.0%, and sales volumes more than doubled compared with the same period last year. Operational improvements, including higher extraction rates and a stronger ratio of whole nuts to broken nuts, contributed to the performance. Growth was also supported by increased processing of third-party raw cashews, including a newly introduced specialised unpeeled product that generates margins comparable to those achieved using Dekel's own raw materials. Higher Volumes Offset Softer Cashew Prices Although average prices for peeled cashews declined by 22.1% amid weaker global market conditions and a return to more normal pricing after last year's elevated levels, the sharp increase in production and sales volumes highlights the successful expansion of the processing facility. The combined progress across the group's palm oil and cashew operations reflects improving utilisation of its production assets and reinforces Dekel's position as an expanding regional agricultural producer, with the potential to support revenue and profitability as the year advances. Outlook Remains Constrained by Financial Performance Despite the operational improvements, Dekel's investment outlook continues to be weighed down by ongoing financial challenges. The company remains loss-making, carries significant leverage, has experienced declining shareholder equity and returned to negative cash flow during 2025. Technical indicators also remain weak, with the shares trading below key moving averages and a negative MACD signalling continued downward momentum. While the RSI suggests the stock is approaching oversold territory, valuation remains difficult to justify given the absence of earnings and a dividend. More about Dekel Agri-Vision Dekel Agri-Vision Plc is an agribusiness company focused on developing sustainable agricultural operations in Côte d'Ivoire. Its core assets include the Ayenouan crude palm oil mill, which processes fruit supplied by local smallholders, and the expanding cashew processing facility at Tiebissou. The company is pursuing a diversified strategy centred on palm oil and cashews, with continued investment in processing capacity and operational efficiency. By supplying both domestic and international markets, Dekel aims to strengthen its position within West Africa's agricultural value chain while driving long-term growth through value-added food production.