Islamabad, Aug 26: In its 1HCY24 financial report, Service Global Footwear Limited (PSX: SGF) reported an unconsolidated profit after tax of Rs. 461 million, a YoY increase of 6%.
In 2QCY24, the unconsolidated earnings on a quarterly basis were Rs. 75 million, a 59 percent YoY decline.
According to Arif Habib Limited, topline for 1HCY24 came in at Rs. 8.287 billion, up 12 percent YoY from Rs. 7.417 billion in SPLY as a result of the devaluation of the PKR and a rise in exports.
Sales decreased by 18% QoQ and 2% YoY in 2QCY24 as a result of muted demand.
The gross margin for 1HCY24 was 16.5%, down from 21.5 percent for SPLY, mostly as a result of rising gasoline and raw material prices. The same factors contributed to the gross margins’ 880 basis point drop in 2QCY24, which saw them drop to 14.3 percent.
In 2QCY24, administrative expenses increased by 18% YoY to PKR 178 million, which was ascribed to an increase in staff pay and salaries.
In 2QCY24, other income was Rs. 105 million, down 53% YoY due to decreased interest earned on decreasing long-term loans to the parent firm. The profit after tax of Service Long March (SLM) after adjustments for
stake is represented by the share of profit from associates, which came to PKR 230 million in 2QCY24.
Compared to 49.0 percent in 2QCY23, the company recorded effective taxation of 68.1 percent in 2QCY24.
SGF’s shares on the market were trading at Rs. 68.83 at the time of reporting, down 10% or Rs. 7.65 with 140,530 shares on Monday.
