SGF Reports Mixed Earnings Amid Competitive Challenges

Karachi: SGF recently held an analyst briefing to discuss its financial performance in CY24 and the first nine months of CY25. The company reported a 6% decline in unconsolidated earnings for CY24, amounting to PkR1.1 billion compared to PkR1.2 billion in the previous year. This decrease was attributed to increased distribution costs and reduced gross margins.

In contrast, SGF’s performance in the first nine months of CY25 showed a significant improvement, with unconsolidated earnings rising to PkR1.6 billion from PkR0.8 billion during the same period in CY24. This twofold increase was primarily driven by volumetric growth, a favorable product mix, and a higher share of profit from associates.

SGF is engaged in the manufacturing, marketing, and export of footwear, leather, and related products. The company sells 55% of its products locally and exports the remaining 45% to markets in Europe, the United States, Asia, Africa, and Australia.

The briefing highlighted that U.S. tariffs pose a neutral impact on Pakistan’s footwear exporters, as competitors in Vietnam, Bangladesh, and China face similar tariff conditions. However, the European market has become more competitive due to quicker turnaround times and aggressive pricing strategies by Chinese manufacturers.