SGF steps up profits with 54.2% YoY surge in Q12024

April 29, 2024 (MLN): Service Global Footwear Limited (PSX: SGF) reported its profit and loss statement for the quarter ended on March 31, 2024, wherein it registered a surge of 54.2% YoY in profits as the profit after tax clocked in at Rs385.61 million [EPS: Rs1.87] compared to a profit of Rs250m [EPS: Rs1.22] in the same period last year (SPLY).

Going by the results, the company's net revenue from contracts with customers marked an increase of 26.60% YoY to Rs4.54 billion as compared to Rs3.58bn in SPLY.

The gross profit of the company improved by 16.63% YoY to Rs828.58m during the review period.

On the expense side, the company observed a rise in distribution costs by 33.92% YoY and other expenses by 16.87% YoY to clock in at Rs172.69m and Rs18.7m respectively during the review period.

Likewise, the administrative expenses of SGF increased to Rs172.69m, reflecting a growth of 18.76% 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 Rs362.16m in the review period, compared to a meagre profit of Rs1.99m recorded in the corresponding period last year.

Other income of SGF plummeted by 79% YoY to stand at Rs43.6m.

On the financing front, the company’s finance costs decreased by 5.23% YoY to stand at Rs200.73m.

The company bared a tax expense of Rs161.31m against the Rs74.91m paid in the corresponding period of last year, depicting an increase of over 2x YoY.

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