16 INTEGRATED ANNUAL REPORT 2026 a challenging global market cycle. The Co-operative’s reputation for reliability, quality and ethical trade continues to serve it well, reinforcing our standing as a trusted supplier in both export and domestic markets. These strengths are not accidental; they are the product of long-term relationships, consistent performance and a willingness to align to evolving market expectations. It is no coincidence that our trading relationship with Japan now extends beyond 50 years. On the back of these positives, the Co-operative sold just under 2 million tonnes of member timber, of which 80% was chipped and exported. With trading volumes returning to pre-fire levels, the Co-operative marked a turnover of R3.4 billion, but on the back of difficult trading conditions and a strengthening Rand, the Group returned a loss of R43.7 million. The strengthening rand and subdued dollar prices created enough pressure on cash flows to require the Co-operative to reduce timber prices to members during the period, after holding off as long as possible using built-up reserves. These decisions are Chairman’s Report 2026 The year under review marks an important chapter in NCT’s journey of renewal and progress. While the operating environment remained demanding, it was also a period in which the Co-operative demonstrated its capacity to adapt, recover and position itself for sustainable success. The steady restoration of the Richards Bay Mill Complex stands as a clear illustration of what can be achieved through disciplined planning, technical expertise and determination. As capacity returned and resilience improved, the organisation regained operational flexibility and strengthened its ability to support members and serve markets with confidence. This recovery has laid a stronger foundation for the years ahead. The year was not without its challenges, and being an export-dominated business, the strengthening of the rand in the second half of the period placed revenue lines under significant pressure. Encouragingly, demand for NCT’s preferred species remained robust and customer relationships continue to endure through VERN SCHEFERMANN
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