SGF gives 20% more dividend as profit jumps to Rs1.17bn in 2023

February 21, 2024 (MLN): Service GlobalFootwear Limited (PSX: SGF) reported its profit and loss statement for the year 2023, wherein the profit after tax clocked in at Rs1.17 billion [EPS: Rs5.7] compared to a profit of Rs341.97m [EPS: Rs1.67] in the same period last year (SPLY).

Considering the company's achievement of profit growth of over 3.4 times, the directors of SGF have declared a final cash dividend of Rs2 per share i.e., 20%. This is in addition to Interim Dividend already paid at Rs3 per share i.e., 30%.

Going by the results, the company's net revenue from contracts with customers marked an increase of 28.23% YoY to Rs15.07bn as compared to Rs11.75bn in SPLY.

The cost of sales rose by 22.55% YoY but was less than proportionate to the growth in sales, which improved the gross profit significantly by 53.11% YoY to Rs3.35bn in 2023.

On the expense side, the company observed a rise in Distribution costs by 33.65% YoY and other expenses by 90.32% YoY to clock in at Rs1.23bn and Rs87.79m respectively during the review period.

Likewise, the administrative expenses of SGF increased to Rs681.46m in 2023, reflecting a growth of 30.21% YoY.

The statement of profit and loss further displays that profit from associates was a crucial contributor to the company's profit growth, as it witnessed an inflow of Rs474.04m in 2023, compared to a loss of Rs224.07m recorded in 2022.

Other income of SGF increased by 12.92% YoY to stand at Rs772.13m in 2023 as compared to Rs683.8m in SPLY.

On the financing front, the company’s finance costs grew by 2.16x YoY and stood at Rs1.01bn as compared to Rs467.18m in 2022, mainly due to higher interest rates.

The company bared a tax expense of Rs412.2m against the Rs345.98m paid in the corresponding period of last year, depicting an increase of 19.14% YoY.

Amount in thousand except for EPS

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