Service Global Footwear Limited Reports Notable Financial Outcomes for First Half of 2024

Karachi: Service Global Footwear Limited (SGFL) has reported significant financial results for the first half of the fiscal year ended June 30, 2024. According to information available from the Pakistan Stock Exchange (PSX), SGFL exhibited a commendable performance with a notable increase in net sales and earnings per share, despite facing economic adversities.

For the period concluded on June 30, 2024, SGFL’s net sales ascended to Rs. 8.29 billion, marking an 11.8% increase from Rs. 7.41 billion during the same period in 2023. However, the gross profit experienced a decline of 14.5%, totaling Rs. 1.36 billion compared to Rs. 1.60 billion in the previous year. This downturn is attributed to various economic pressures including rising electricity costs, wage increases, and a challenging export market exacerbated by the devaluation of the dollar against the rupee.

The profit before tax for SGFL rose by 13.5% to Rs. 783 million, up from Rs. 690 million in the prior year. This growth is partially due to the company’s strategic investment in Service Long March Tyres (SLM), which contributed Rs. 592 million to the profit share. Following additional investments of Rs. 286 million in SLM, SGFL anticipates further production capacity increases and enhanced profitability.

After accounting for taxes, SGFL’s net profit after tax increased by 5.8% to Rs. 461 million from Rs. 435 million in the previous year, with per-share earnings also growing from Rs. 2.12 to Rs. 2.24. The taxation expense surged to Rs. 322 million, reflecting changes in the tax regime for exporters.

Looking ahead, SGFL is positioning itself to navigate through ongoing global economic uncertainties and regional geopolitical conflicts which have impacted logistics and commodity prices. With global inflation projected to stabilize and a modest growth forecast for the global economy, SGFL is focused on maintaining its market presence by acquiring new customers and expanding sales avenues.

The company’s management remains dedicated to leveraging its structured growth strategy to continue delivering value to its shareholders and strengthening its market position despite challenging conditions.

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