SGF profit slumps over 65% in Q1 FY25

April 29, 2025 (MLN): Service Global Footwear Limited (PSX: SGF) disclosed its financial results for the quarter ended March 31, 2025, reporting a notable 65.33% year-on-year (YoY) decline in profit after tax, which stood at Rs122.01 million [EPS: Rs0.59], compared to Rs351.92m [EPS: Rs1.71] in the same period last year (SPLY).

During the quarter, the company’s revenue posted a modest growth of 5.87% YoY, reaching Rs4.81 billion compared to Rs4.54bn in SPLY.

However, the increase in the cost of sales by 7.51% outpaced the revenue growth, leading to a slight 1.28% contraction in gross profit, which clocked in at Rs840.33m.

On the expense side, distribution costs surged by 29.59% YoY to Rs455.29m, while administrative expenses rose by 14.06% to Rs201.01m.

Other expenses saw a sharp decline of 62.11% YoY, falling to Rs6.89m from Rs18.17m. As a result, total operating expenses increased by 21.52% to Rs663.19m.

Profit from operations declined by 29.52% YoY, settling at Rs251.03m.

Finance costs decreased by 24.95% to Rs153.93m, offering slight relief on the financing front. The company’s share of profit from its equity-accounted investee was recorded at Rs154.4m, down 57.37% from Rs362.17m in SPLY.

Overall, SGF’s profit before taxation declined by 53.63% YoY to Rs209.18m, despite a 31.91% reduction in levy charges. After accounting for taxation of Rs87.17m, the company concluded the quarter with a net profit of Rs122.01m.

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