Service Global Footwear Limited (PSX: SGF) reported a massive surge in profitability today. For the year ended December 31, 2025, the company posted a net profit after taxation of Rs. 1.94 billion. This marks a 75.08% increase compared to Rs. 1.11 billion in 2024. Consequently, the Board declared a final cash dividend of Rs. 2.00 per share (20%) for the year.
Earnings per share (EPS) mirrored this robust growth. Basic EPS increased to Rs. 9.38 from Rs. 5.37, reflecting a 74.67% gain. Meanwhile, diluted EPS rose to Rs. 9.32 from Rs. 5.34, up 74.53% year-on-year.
Strong Revenue & Core Operations
Revenue from customer contracts showed a highly positive trajectory. The top line grew 14.34% to Rs. 19.89 billion from Rs. 17.39 billion last year. Furthermore, gross profit reached Rs. 3.46 billion, up 19.67% from Rs. 2.89 billion in 2024.
This expanding gross margin shows that revenue growth successfully outpaced operational cost pressures. However, the cost of sales also increased by 13.28% to Rs. 16.43 billion. As a result of these dynamics, profit from operations increased 11.81% to Rs. 1.09 billion.
Service Global Footwear Expenses & Tax Impacts
Operating expense trends remained mixed throughout the year. Distribution costs rose 14.78% to Rs. 1.55 billion. Similarly, administrative expenses increased 19.02% to Rs. 924.38 million. These increases pressured operating margins modestly. Conversely, other expenses declined 27.88% to Rs. 78.88 million, providing partial relief to operating profitability.
On the non-operating side, other income dropped 42.76% to Rs. 182.73 million. However, finance costs declined 27.97% to Rs. 480.48 million. After accounting for a levy of Rs. 92.85 million (down 52.90%) and taxation of Rs. 854.63 million (up 163.38% due to higher taxable profits), SGF posted its record net profit.
Associate Profits Fuel the Bottom Line
A crucial positive driver for SGF was its share of net profit from an associate. This segment surged 72.13% to Rs. 2.28 billion, compared to Rs. 1.32 billion in 2024. This significant contribution heavily lifted the final bottom-line results, pushing the profit before levy and taxation up 77.18% to Rs. 2.88 billion.
Here is the complete Statement of Profit or Loss (Year Ended December 31, 2025):
| Description | 2025 (PKR) | 2024 (PKR) | Change (%) |
|---|---|---|---|
| Net Revenue | 19,886,480 | 17,391,854 | 14.34% |
| Cost of Sales | 16,428,271 | 14,501,963 | 13.28% |
| Gross Profit | 3,458,209 | 2,889,891 | 19.67% |
| Distribution Cost | 1,552,249 | 1,352,327 | 14.78% |
| Administrative Espenses | 924,384 | 776,650 | 19.02% |
| Other Expenses | 78,883 | 109,374 | -27.88% |
| Other Income | 182,734 | 319,241 | -42.76% |
| Profit from Operations | 1,085,427 | 970,781 | 11.81% |
| Finance Cost | 480,482 | 667,078 | -27.97% |
| Share of Net Profit of Associate | 2,277,572 | 1,323,147 | 72.13% |
| Profit Before Levy & Taxation | 2,882,517 | 1,626,850 | 77.18% |
| Levy | 92,850 | 197,133 | -52.90% |
| Profit Before Taxation | 2,789,667 | 1,429,717 | 95.12% |
| Taxation | 854,627 | 324,480 | 163.38% |
| Profit After Taxation | 1,935,040 | 1,105,237 | 75.08% |
| Earnings per Share – Basic (PKR) | 9.38 | 5.37 | 74.67% |
| Earnings per Share – Diluted (PKR) | 9.32 | 5.34 | 74.53% |
