Service GlobalFootwear Limited recorded earnings per share of PKR 5.34 in CY24, as compared to earnings per share of PKR 5.75 in FY24. The company recorded net sales of PKR 17.4 Bn, up 15% from PKR 15.1 Bn in CY23. During this period gross margin contracted from 22% in Cy23 to 17% in CY24. As a result, the company saw its gross profit decrease from PKR 3.3 Bn in CY23 to PKR 2.9 Bn in CY24. SGF saw a 179% increase in its share of associates’ profit, surging from PKR 474 Mn in CY23 to PKR 1.3 Bn in CY24.
This was driven by a recovery in margins and a capacity utilization of 100% in Service Long March Tyres. The company expects SLM to continue operating at full capacity with margins to remain intact for the near future as the Afghan border has closed for transit trade thereby reducing the competition from smuggled imports.
The management apprised that the capacity of SLM will increase from 16 Mn tyres to 20 Mn from April once the expansion comes online. It also highlighted that the average selling price of tyres in the local market is PKR 50,000 per tyre while the average export sales price is between 110-120 usd.
The company was hopeful of exports in SLM as it possesses a tariff advantage over competitors in the US with a 25% tariff as compared to 50% on Indian producers and 73% in Chinese producers. The IPO of SLM is expected to be brought in the first half of 2026 at the PSX. The gross margin for July-Sep 2025 stood at 18% for SLM.
With regards to the shoe business, it was highlighted that there has been 20% growth in USD terms in 2025. There is also an expansion coming online in the start of 2025 which is for the PU shoes which the company has found to be a promising product
Important Disclosures
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