SGF doubles profit in 9MCY25

October 28, 2025 (MLN): Service Global Footwear Limited (PSX: SGF) has posted stellar results for the nine months ended September 30, 2025, with its consolidated profit after taxation (PAT) soaring by 107.3% to Rs1.67 billion, compared to Rs804.9 million in the same period last year.

The company’s basic earnings per share (EPS) nearly doubled to Rs8.09, up from Rs3.91 in 9M 2024, reflecting its strongest profitability to date.

The impressive growth was driven by both higher sales and improved cost efficiency.

Revenue rose 17.2% YoY to Rs15.22bn, up from Rs12.99bn.

Gross profit increased to Rs2.97bn from Rs2.34bn, improving the gross margin to 19.51% from 18.04%.

The company’s net margin nearly doubled to 10.96%, versus 6.19% last year, underscoring better operating leverage and profitability retention.

Operating profit climbed to Rs884.6m, while profit before taxation (PBT) more than doubled to Rs2.05bn from Rs1.12bn a year earlier.

A major contributor to the strong bottom line was the share of profit from equity-accounted investees, which jumped to Rs1.66bn from Rs944.3m, showcasing robust returns from associated ventures.

Meanwhile, finance costs declined 24.6% YoY to Rs409.6m, easing pressure on the company’s leverage profile.

The company’s total taxation expense rose to Rs384.64m in 2025 from Rs319.13m in 2024, in line with the near doubling of profit before taxation (PBT) over the same period.

However, the effective tax rate (ETR) saw a significant decline, falling to 18.73% in 2025 from 28.39% in 2024.

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