Service Global Footwear Limited (SGF) is set to reveal its financial results for the CY23 on 21st Feb’24. We expect the company to post a PAT of PKR 1,019mn (EPS: PKR 4.95) for the CY23, up by 198% YoY. On a quarterly basis, the company is expected to register a profit of PKR 226mn (EPS: PKR 1.10) compared to a loss of PKR 116mn (EPS: PKR 0.56) owed to i) surge in export sales and, ii) improved gross margins iii) PKR depreciation against the USD and iv) a contribution of PKR 175mn from Service Long March (SLM).
A surge in topline of PKR 4.5bn (39% YoY) is expected due to higher volumetric sales of shoes and PKR depreciation. Major contributions in export sales are expected from the European region (+23% YoY), followed by the USA (+12% YoY).
Alongside the result, we expect the company to announce a cash dividend of PKR 1.00/share (PKR 4.00/share in CY23).
Courtesy- AHL Research