SGF 9MCY26 profit surges 82%

October 26, 2026 (MLN): Service Global Footwear Limited (PSX: SGF) reported an 82% surge in its consolidated net profit for the nine months ended September 30, 2026 (9MCY26), reaching Rs3.04bn compared to Rs1.67bn in the corresponding period last year.

Reflecting this strong bottom-line growth, basic earnings per share (EPS) expanded to Rs14.70 (diluted EPS of Rs14.61), up from basic EPS of Rs8.09 (diluted EPS of Rs8.03) in 9MCY25.

For the third quarter (Q3CY26) alone, net profit rose 8% to Rs569.82m (basic EPS of Rs2.75) compared to Rs527.62m (basic EPS of Rs2.55) in Q3CY25.

The primary catalyst driving the strong nine-month bottom line was a 73% surge in share of profit from equity-accounted investees alongside lower tax outlays and reduced finance costs, which cushioned a contraction in core export revenue.

Net consolidated revenue for 9MCY26 declined 22% to Rs11.83bn (down from Rs15.22bn in 9MCY25).

Cost of sales fell 24% to Rs9.32bn, bringing gross profit to Rs2.51bn compared to Rs2.97bn in the prior-year period.

On the operational front, distribution costs fell 26% to Rs1.08bn, while administrative expenses rose 6% to Rs722.91m and other expenses rose to Rs294.90m.

Supported by a 67% increase in "other income" to Rs187.53m, operating profit settled at Rs594.64m.

Below the operating line, SGF gained debt-servicing relief as finance costs contracted 28% to Rs295.52m (down from Rs409.59m in 9MCY25).

Crucially, the share of profit from equity-accounted investees jumped 73% to Rs2.87bn (up from Rs1.66bn in 9MCY25).

After accounting for levies of Rs52.02m, profit before taxation rose 52% to Rs3.12bn.

The company recorded a significantly lower taxation expense of Rs80.78m for the period (down 79% from Rs384.64m in 9MCY25).

Backed by powerful associate contributions, lower effective taxes, and deleveraging savings, Service Global Footwear Limited securely closed the nine-month period with its net profit reaching Rs3.04bn.

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