SGF posts 75% jump in annual profit

March 18, 2026 (MLN): Service GlobalFootwear Limited (PSX: SGF) reported a significant improvement in profitability for the year ended December 31, 2025, with net profit after taxation rising 75.08% to Rs1.94 billion compared to Rs1.11bn in the corresponding period last year.

Earnings per share (EPS) also showed robust growth, with basic EPS increasing to Rs9.38 in 2025 from Rs5.37 in 2024 a gain of ~74.7%, while diluted EPS rose to Rs9.32 from Rs5.34, up approximately 74.5% year‑on‑year.

Revenue from contracts with customers recorded a positive trajectory, growing 14.34% to Rs19.89bn in 2025 from Rs17.39bn last year. This top‑line expansion, despite higher costs, supported improved overall performance.

On the cost side, cost of sales increased 13.28% to Rs16.43bn, resulting in a gross profit of Rs3.46bn, up 19.67% versus Rs2.89 billion in 2024 showing an expanding gross margin driven by revenue growth outpacing cost pressures.

Operating expense trends were mixed. Distribution costs rose 14.78% to Rs1.55bn, while administrative expenses increased 19.02% to Rs924.38m, modestly pressuring operating margins. Other expenses declined 27.88% to Rs78.88mproviding partial relief to operating profitability.

On the non‑operating side, other income contracted 42.76% to Rs182.73m, compared with Rs319.24m in the previous year, restraining overall earnings support from ancillary sources.

As a result of the above dynamics, profit from operations increased 11.81% to Rs1.09 billion, up from Rs970.78m in 2024.

Finance cost declined 27.97% to Rs480.48m, helping to bolster earnings before equity contributions.

A key positive driver was SGF’s share of net profit of associate, which surged 72.13% to Rs2.28bn, compared with Rs1.32bn in 2024 significantly lifting bottom‑line results.

Consequently, profit before levy and taxation climbed 77.18% to Rs2.88bn, from Rs1.63bn last year.

After accounting for a levy of Rs92.85m (down 52.90%) and income tax of Rs854.63m (up 163.38% due to higher taxable profits), the company posted a net profit after taxation of Rs1.94bn for 2025.

Showing the strong earnings performance, the Board declared a final cash dividend of Rs2.00 per share (20%) for the year ended December 31, 2025.

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