Lahore, August 27, 2026: Service Global Footwear Limited (SGFL) has announced its financial results for the half year ended June 30, 2026, reporting revenue of approximately Rs9.54 billion and profit after taxation of Rs1.12 billion on an unconsolidated basis.

The company’s Board of Directors approved the separate and consolidated interim financial statements at a meeting held on August 27, 2026. The board did not recommend any cash dividend, bonus shares or right shares for the period.

Revenue remains above Rs9.5 billion

According to the unconsolidated results, SGFL generated revenue of Rs9.54 billion during the six months ended June 30, 2026, compared with Rs8.10 billion in the corresponding period of 2025. Gross profit stood at approximately Rs1.59 billion, against Rs1.67 billion a year earlier.

Distribution costs declined to around Rs655.6 million, compared with Rs764.1 million in the same period last year. Administrative expenses, however, increased slightly to Rs435.2 million from Rs415.5 million, while other expenses rose substantially to Rs269.5 million from Rs45.9 million.

Profit from operations was reported at approximately Rs457.5 million, while other income contributed Rs145.2 million during the period. Finance costs declined to Rs185.7 million from Rs256.5 million a year earlier, providing some relief at the operating level.

Investment income remains an important contributor

A significant portion of the company’s earnings came through its share of the net profit of an associate accounted for under the equity method. This contribution amounted to approximately Rs1.16 billion during the half year, compared with Rs2.23 billion in the corresponding period of 2025.

The company reported profit before taxation of approximately Rs2.46 billion, compared with Rs1.36 billion in the first half of 2025. Profit after taxation, however, was reported at approximately Rs1.12 billion, compared with Rs2.50 billion in the corresponding period of the previous year.

Basic earnings per share were reported at Rs5.41, while diluted earnings per share stood at Rs12.03 for the half year.

Consolidated performance

On a consolidated basis, SGFL reported revenue of approximately Rs9.57 billion, up from Rs8.13 billion in the first half of 2025. Gross profit stood at Rs1.81 billion, while profit from operations was approximately Rs432.5 million.

The consolidated profit after taxation was reported at approximately Rs1.14 billion, compared with Rs2.47 billion in the same period last year. Consolidated basic earnings per share stood at Rs5.54, while diluted EPS was Rs11.87.

Balance sheet and investment position

As of June 30, 2026, the company’s unconsolidated total assets stood at approximately Rs20.68 billion, compared with Rs23.54 billion at the end of December 2025. Total equity increased to around Rs10.51 billion from Rs8.39 billion over the same period.

Long-term investments also increased significantly, reaching approximately Rs8.03 billion, compared with Rs5.80 billion at December 31, 2025. Short-term investments stood at approximately Rs1.10 billion at the end of June.

On a consolidated basis, total equity reached approximately Rs10.48 billion, including a non-controlling interest of Rs3.19 million. Total consolidated assets were reported at Rs20.94 billion.

Cash flow remains an area to watch

SGFL recorded net cash used in operating activities of Rs889.7 million during the first half of 2026 on an unconsolidated basis, compared with Rs167.8 million in the same period last year. The company spent Rs210.5 million on fixed assets and Rs140.3 million on investment properties.

Investing activities generated net cash of approximately Rs1.78 billion, helped significantly by a Rs2.57 billion repayment of a loan by Service Industries Limited, the holding company. Financing activities, meanwhile, used approximately Rs1.49 billion, including dividend payments of Rs826.7 million.

The consolidated cash flow statement similarly showed net cash used in operating activities of Rs815.0 million, while investing activities generated net cash of Rs1.77 billion.

Overall, the first-half results show that Service Global Footwear continued to generate strong revenue and maintained a sizeable investment base, while its earnings profile remained influenced by associate-company contributions, operating expenses and financing requirements. The company’s financial position and cash-flow developments will remain important indicators for investors as it moves into the second half of 2026.