SGF profit more than doubles to nearly Rs2.5bn in 1HCY26

According to Mettis Global, Service Global Footwear Limited (PSX: SGF) posted a 116 per cent jump in consolidated net profit for the half year to June 30, 2026. Profit after taxation climbed to Rs2.47bn, compared with Rs1.14bn in the same period last year. On a per share basis, basic EPS rose to Rs11.95 from Rs5.54, while diluted EPS stood at Rs11.87 against Rs5.50.

Revenue fell 15 per cent to Rs8.13bn from Rs9.57bn, but cost of sales dropped faster, by 18 per cent, keeping gross profit almost flat at Rs1.81bn. Distribution costs declined 16 per cent and administrative expenses edged up 5 per cent, while other expenses jumped to Rs269.54m from Rs49.15m. As a result, operating profit fell 30 per cent, although finance costs eased 27 per cent to Rs194.08m.

The main driver was a 91 per cent rise in the share of profit from an equity accounted investee, net of tax, to Rs2.23bn from Rs1.16bn. A tax credit of Rs44.65m was booked this period, whereas the previous year carried a tax charge of Rs251.996m, adding a further lift to the bottom line. Profit before taxation and levy rose 72 per cent to Rs2.47bn, underlining how much the equity investee income shaped the result.