South African Forestry Co Ltd’s (Safcol) pre-tax profits fell by R261m, to R872m in the year to March 31.
This remained substantially higher than the five-year average of R537m, and was coupled with an increase in turnover of R179m to R832m year-on-year. Net profits were R642m, down from R829m in the year to March 31, 2007.
Chairperson Gugu Moloi said Safcol had faced three main challenges in the year: the privatisation of Komatiland Forests Ltd; fire damage to plantations and the recovery of salvageable timber; and changes required by the draft Forestry Charter and through the Department of Trade and Industry scorecard.
“The year under review has been exciting and at times challenging,” she said. “The board is pleased that, in spite of these challenges, the group is still posting an impressive profit.”
Ms Moloi added the wildfires, which affected the company’s plantations in the year to the tune of R404m, would increase the ongoing shortage of supply and lead to high prices for logs and lumber.
