April 28, 2026 (MLN): Service Global Footwear Limited (PSX: SGF) reported a spectacular 4x surge in its consolidated net profit for the first quarter ended March 31, 2026, reaching Rs487.17m compared to Rs122.01m in the corresponding period last year.

Reflecting this massive bottom-line expansion, the company's basic earnings per share (EPS) quadrupled to Rs2.36 from Rs0.59 in Q1 2025.

The multi-fold profit growth masked a contraction in the company's core operations. SGF's top-line revenue posted a 17% year-on-year decline, falling to Rs4.02bn from Rs4.81bn.

While the cost of sales also dropped proportionately by 18% to Rs3.26bn, the lower sales volume caused the gross profit to contract by 10%, settling at Rs757.98m down from Rs840.33m last year.

On the operational front, the company navigated mixed overhead dynamics. SGF successfully trimmed its distribution costs by 13% to Rs397.72m.

However, administrative expenses rose by 8% to Rs216.39m, and other expenses skyrocketed from Rs6.89m to Rs72.31m.

Dragged down by the shrinking gross margins, rising administrative costs, and a 14% drop in other income, the profit from operations plunged by a steep 46% to Rs135.25m.

This extraordinary influx of associate income, combined with lower debt costs and a 20% reduction in statutory levies, propelled the profit before taxation up by 225% to Rs678.84m.

Even after absorbing a 120% heavier taxation expense of Rs191.67m, the company comfortably secured its nearly 4 fold leap in final net profit, closing the quarter at Rs487.17m.