Karachi: Service Global Footwear Limited (SGFL) has reported a very large growth in profitability for the first half of 2025, driven by increased sales and enhanced operational efficiencies. The company disclosed its financial results on August 28, 2025, showing a significant improvement in key performance indicators compared to the previous year.
SGFL’s net sales reached 9.54 billion rupees, marking a big move from the 8.29 billion rupees recorded in the same period last year. Gross profit also saw a big move, with a total of 1.59 billion rupees compared to 1.36 billion rupees in the first half of 2024. The company’s profit before levy and tax experienced a very large or significant move, amounting to 1.40 billion rupees, a substantial increase from the 782.59 million rupees reported in the previous year.
The profit after levy and tax amounted to 1.12 billion rupees, which is a very large or significant move from the 460.68 million rupees reported in 2024. Earnings per share also reflected a very large or significant move, rising to 5.41 rupees from 2.24 rupees. According to information available from the Pakistan Stock Exchange (PSX), the company’s performance during this period was influenced by increased capacity utilization, a better product mix, and improved operational efficiencies.
SGFL’s strategic investment in Service Long March yielded profits of 1.17 billion rupees, further enhancing the company’s financial standing. The company’s directors attributed the improved gross profit margin to the absorption of fixed overhead costs through higher sales and increased operational efficiency, maintaining capacity utilization rates above 90%.
Looking ahead, SGFL aims to expand its market presence and enhance its speed-to-market capabilities. The company is actively engaging with potential US customers, despite uncertainties surrounding trade tariffs. SGFL has implemented measures to improve access to raw materials and reduce lead times through its China office and a newly established mold workshop in Pakistan.
SGFL has also invested in a new production hall equipped with Chinese production technology, aiming to boost efficiency and lower overheads. This strategic move is expected to enhance the company’s competitiveness amid pricing pressures in the global footwear market.
The company’s commitment to expanding its customer base and operational efficiency is set against the backdrop of evolving global trade dynamics, including US tariffs and increased competition from Chinese manufacturers in the European market. Despite these challenges, SGFL remains focused on maintaining its leadership position in Pakistan’s footwear industry and realizing the country’s potential in the global market.