Service Global Footwear LimitedPSX: SGF

Financial Results for the Year Ended December 31, 2025

Mar 18, 2026 at 6:34 AM UTC · Issued by Service Global Footwear Limited

Service Global Footwear Limited

Servis HoUse, 2-f'4ain GUlberg Lahore-54662 (Pakistan) Phone: (42) 35751990-96

Fax: (42) 35711827

SGFL/PSX/CS/68

March 18, 2026

The General Manager,

Pakistan Stock Exchange Limited, Stock Exchange Building,

Stock Exchange Road, Karachi.

SUBJECT: FINANCIAL RESULTS FOR THE YEAR ENDED DECEMBER 31, 2025

Dear Sir,

We have to inform you that the Board of Directors of Service Global Footwear Limited (the "Company") in their meeting held on March 18, 2026 at 10:00 a.m., at the registered office of the Company, has approved the separate and consolidated audited financial statements of the Company for the year ended December 31, 2025 and recommended the following:

CASH DIVIDEND

A Final Cash Dividend for the year ended December 31, 2025 at Rs. 2 per share i.e., 20%.

FINANCIAL RESULTS:

The financial results of the Company are enclosed herewith as Annexure-A.

PRICE SENSITIVE INFORMATION:

Subject to approval of the members of the Company, the Board of Directors have recommended the renewal of investment of up to PKR 4.5 Billion in the form of working capital loan to Service Industries Limited, a holding / associated company, for a further period of one year till June 30, 2027 with all other terms and conditions of the investment to remain unchanged.

ANNUAL GENERAL MEETING:

The Annual General Meeting of the Company will be held on Wednesday, April 29, 2026 at 10:00 a.m., at Shalimar Tower Hotel, Adjacent Servis House, 2-Main Gulberg, Lahore.

BOOK CLOSURE FOR THE PURPOSE OF ENTITLEMENT OF FINAL CASH DIVIDEND AND AGM:

The Share Transfer Books of the Company will remain closed from April 23, 2026 to April 29, 2026 (both days inclusive). Transfers received at the office of the share registrar of the Company, Mls. Corplink (Private) Limited, Wings Arcade, 1-K, Commercial, Model Town, Lahore at the close of business on April 22, 2026 will be treated in time for the purpose of above entitlement of Cash Dividend and for attending and voting at the AGM

Service Global Footwear Limited

Servis House, 2-f'1ain GuJberg Lahore 54662 (Pakistan)

Phone: (42) 35751990-96

Fax: (42) 35711827

The Annual Report of the Company for the year ended December 31, 2025 will be transmitted PUCARS separately, within the specified time.

Thanking you.

through

Yours faithfully,

FOR SERVICE GLOBAL FOOTWEAR LIMITED

Waheed A hraf Company Secretary

Enclosed as above.

C.C:

Executive Director / HOD, Supervision Division,

Securities & Exchange Commission of Pakistan, 63, NIC Building, Jinnah Avenue, Blue Area, Islamabad.

Annexure - A SERVICE GLOBAL FOOTWEAR LIMITED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2025 2025 2024 2025 2024 (Rupees in thousand) (Rupees in thousand) EQUITY AND LIABILITIES ASSETS SHARE CAPITAL AND RESERVES NON-CURRENT ASSETS Authorized share capital

250,000,000 (2024: 250,000,000) ordinary shares of Fixed assets 4,198,142 2,948,805 Rupees 10 each 2,500,000 2,500,000 Long term security deposits 4,491 4,354 Long term loans to employees 17,931 2,845

Long term investments 5,799,215 4,035,432 Long term loan to Holding Company - -

10,019,779 6,991,436

Issued, subscribed and paid-up share capital 2,064,676 2,060,564 Reserves 6,329,979 5,150,351

Total equity LIABILITIES NON-CURRENT LIABILITIES	8,394,655	7,210,915	CURRENT ASSETS
Long term financing	1,055,360	253,426	Stores, spares and loose tools	194,749	166,034
Employees' retirement benefit	260,507	238,661	Stock-in-trade	3,894,694	4,151,812
Deferred income tax liability - net	786,075	278,796	Trade debts	2,927,254	2,306,192
	2,101,942	770,883	Loans and advances	253,564	2,873,329
CURRENT LIABILITIES			Accrued mark-up	7,966	9,599
			Short term deposits and prepayments	36,382	24,703
Trade and other payables	2,793,668	2,078,710	Other receivables	1,856,323	1,758,777
Accrued mark-up	73,772	46,928	Short term investments	94,832	-
Short term borrowings	7,128,240	9,032,440	Advance income tax and prepaid levy - net	270,404	178,145
Current portion of non-current liability	185,141	59,543	Cash and bank balances	1,123,513	744,970
Unclaimed dividend	2,042	5,578		10,659,681	12,213,561

10,182,863 11,223,199

Total liabilities 12,284,805 11,994,082 CONTINGENCIES AND COMMITMENTS

TOTAL EQUITY AND LIABILITIES 20,679,460 19,204,997 TOTAL ASSETS 20,679,460 19,204,997

SERVICE GLOBAL FOOTWEAR LIMITED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 2025 2025 2024 (Rupees in thousand)

REVENUE - net	19,886,480	17,391,854
COST OF SALES	(16,428,271)	(14,501,963)
GROSS PROFIT	3,458,209	2,889,891
DISTRIBUTION COST	(1,552,249)	(1,352,327)
ADMINISTRATIVE EXPENSES	(924,384)	(776,650)
OTHER EXPENSES	(78,883)	(109,374)
	(2,555,516)	(2,238,351)
	902,693	651,540
OTHER INCOME	182,734	319,241
PROFIT FROM OPERATIONS	1,085,427	970,781
FINANCE COST	(480,482)	(667,078)
	604,945	303,703
SHARE OF NET PROFIT OF ASSOCIATE ACCOUNTED FOR USING THE EQUITY METHOD	2,277,572	1,323,147
PROFIT BEFORE LEVY AND TAXATION	2,882,517	1,626,850
LEVY	(92,850)	(197,133)
PROFIT BEFORE TAXATION	2,789,667	1,429,717
TAXATION	(854,627)	(324,480)
PROFIT AFTER TAXATION	1,935,040	1,105,237
EARNINGS PER SHARE - BASIC (RUPEES)	9.38	5.37
EARNINGS PER SHARE - DILUTED (RUPEES)	9.32	5.34

SERVICE GLOBAL FOOTWEAR LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2025 2025 2024 (Rupees in thousand)

PROFIT AFTER TAXATION	1,935,040	1,105,237
OTHER COMPREHENSIVE LOSS
Items that will not be reclassified to profit or loss:
Remeasurements of employees' retirement benefit obligation - net of tax	(6,452)	(18,689)
Items that may be reclassified subsequently to profit or loss
Share of other comprehensive loss of investment accounted for using the equity method	(223)	-
Other comprehensive loss for the year - net of tax	(6,675)	(18,689)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	1,928,365	1,086,548

SERVICE GLOBAL FOOTWEAR LIMITED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

SHARE CAPITAL

RESERVES

TOTAL EQUITY

CAPITAL RESERVES

REVENUE

RESERVE

TOTAL

Reserve for issuance of bonus shares

Share premium

Share options reserve

Share of exchange translation reserve equity accounted investee company

Share of share premium of equity accounted investee company

Share of employee share options reserve held by equity accounted investee company

Un-appropriated profit

-----------------------------------------------------(Rupees in thousand)-----------------------------------------------------

Balance as at 31 December 2023	2,059,175	1,390,684	1,713,028	895	-	-	-	1,337,061	4,441,668	6,500,843
Adjustment due to equity accounted investee company Transactions with owners:	-	-	-	-	-	-	24,389	-	24,389	24,389
Final dividend for the year ended 31 December 2023 @ Rupees 2 per share	-	-	-	-	-	-	-	(411,835)	(411,835)	(411,835)
Ordinary shares issued under Employees Stock Option Scheme	1,389	-	3,184	(406)	-	-	-	-	2,778	4,167
Employee share options lapsed	-	-	109	(109)	-	-	-	-	-	-
Recognition of share options reserve	-	-	-	6,803	-	-	-	-	6,803	6,803
	1,389	-	3,293	6,288	-	-	-	(411,835)	(402,254)	(400,865)
Profit for the year	-	-	-	-	-	-	-	1,105,237	1,105,237	1,105,237
Other comprehensive loss for the year	-	-	-	-	-	-	-	(18,689)	(18,689)	(18,689)
Total comprehensive income for the year	-	-	-	-	-	-	-	1,086,548	1,086,548	1,086,548
Balance as at 31 December 2024	2,060,564	1,390,684	1,716,321	7,183	-	-	24,389	2,011,774	5,150,351	7,210,915
Adjustment due to equity accounted investee company	-	-	-	-	-	-	35,328	-	35,328	35,328
Adjustment due to issuance of shares of equity accounted investee company under employees stock option scheme	-	-	-	-	-	55,714	(55,714)	-	-	-
Transactions with owners:
Final dividend for the year ended 31 December 2024 @ Rupees 4 per share	-	-	-	-	-	-	-	(824,226)	(824,226)	(824,226)
Ordinary shares issued under Employees Stock Option Scheme	4,112	-	13,727	(3,879)	-	-	-	-	9,848	13,960
Employee share options lapsed	-	-	559	(559)	-	-	-	-	-	-
Recognition of share options reserve	-	-	-	30,313	-	-	-	-	30,313	30,313
	4,112	-	14,286	25,875	-	-	-	(824,226)	(784,065)	(779,953)
Profit for the year	-	-	-	-	-	-	-	1,935,040	1,935,040	1,935,040
Other comprehensive loss for the year	-	-	-	-	(223)	-	-	(6,452)	(6,675)	(6,675)
Total comprehensive income for the year	-	-	-	-	(223)	-	-	1,928,588	1,928,365	1,928,365
Balance as at 31 December 2025	2,064,676	1,390,684	1,730,607	33,058	(223)	55,714	4,003	3,116,136	6,329,979	8,394,655

SERVICE GLOBAL FOOTWEAR LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2025 2025 2024 (Rupees in thousand)

CASH FLOWS FROM OPERATING ACTIVITIES CASH GENERATED FROM OPERATIONS	1,674,668	594,703
Finance cost paid	(453,439)	(786,881)
Income tax and levy paid	(532,457)	(354,490)
Workers' profit participation fund paid	-	(35,275)
Workers' welfare fund paid	-	(992)
Employees' retirement benefit paid	(16,938)	(40,327)
Net (increase) / decrease in long term loans to employees	(18,642)	7,551
Net decrease / (increase) in security deposits	4,155	(8,788)
NET CASH GENERATED FROM / (USED IN) OPERATING ACTIVITIES	657,347	(624,499)
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditure on fixed assets	(1,557,034)	(178,017)
Interest on saving accounts received	63,126	22,245
Return on term deposit receipts	725	-
Loans given to Holding Company	(74,000)	(6,025,000)
Loans repaid by Holding Company	2,574,000	4,775,000
Interest on loans to Holding Company received	33,354	87,133
Dividend received from associate	548,894	379,360
Short term investment made	(91,000)	-
Long term investment made	-	(286,400)
Proceeds from disposal of operating fixed assets	13,601	16,187
NET CASH FROM / (USED IN) INVESTING ACTIVITIES	1,511,666	(1,209,492)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of share options	13,960	4,167
Long term financing obtained	986,983	-
Repayment of long term financing	(59,451)	(49,395)
Short term borrowings - net	(1,904,200)	750,093
Dividend paid	(827,762)	(1,028,954)
NET CASH USED IN FINANCING ACTIVITIES	(1,790,470)	(324,089)
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS	378,543	(2,158,080)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	744,970	2,903,050
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	1,123,513	744,970

SERVICE GLOBAL FOOTWEAR LIMITED AND ITS SUBSIDIARY COMPANY CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2025

2025		2024		2025		2024
(Rupees in thousand) (Rupees in thousand)
EQUITY AND LIABILITIES				ASSETS
SHARE CAPITAL AND RESERVES				NON-CURRENT ASSETS
Authorized share capital 250,000,000 (2024: 250,000,000) ordinary shares of				Fixed assets	4,211,854	2,960,941
Rupees 10 each	2,500,000 2,500,000			Long term security deposits	4,491	4,354
				Long term loans to employees	17,931	2,845
				Long term investment	5,710,048	3,946,265
Long term loan to Ultimate Holding Company - -
					9,944,324		6,914,405
Issued, subscribed and paid-up share capital	2,064,676		2,060,564
Reserves	6,326,335		5,140,491
Total equity	8,391,011		7,201,055
LIABILITIES
NON-CURRENT LIABILITIES				CURRENT ASSETS
Long term financing	1,055,360		253,426	Stores, spares and loose tools	194,749		166,034
Employees' retirement benefit	260,507		238,661	Stock-in-trade	3,894,694		4,151,812
Deferred income tax liability - net	786,075		278,796	Trade debts	3,001,047		2,338,417
	2,101,942		770,883	Loans and advances	270,962		2,917,537
CURRENT LIABILITIES				Accrued mark-up	7,966		9,599
				Short term deposits and prepayments	39,047		26,043
Trade and other payables	3,057,521		2,326,991	Other receivables	2,073,092		1,944,955
Accrued mark-up	73,772		46,928	Short term investments	94,832		-
Short term borrowings	7,128,240		9,032,440	Advance income tax and prepaid levy - net	270,404		178,145
Current portion of non-current liability	185,141		59,543	Cash and bank balances	1,148,552		796,471
Unclaimed dividend	2,042		5,578		10,995,345		12,529,013
10,446,716 11,471,480
Total liabilities	12,548,658	12,242,363
CONTINGENCIES AND COMMITMENTS
TOTAL EQUITY AND LIABILITIES 20,939,669 19,443,418 TOTAL ASSETS 20,939,669 19,443,418

SERVICE GLOBAL FOOTWEAR LIMITED AND ITS SUBSIDIARY COMPANY CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 2025 2025 2024 (Rupees in thousand)

REVENUE - net	19,935,066	17,467,975
COST OF SALES	(16,015,597)	(14,288,696)
GROSS PROFIT	3,919,469	3,179,279
DISTRIBUTION COST	(1,958,100)	(1,619,648)
ADMINISTRATIVE EXPENSES	(952,431)	(792,507)
OTHER EXPENSES	(78,883)	(99,749)
	(2,989,414)	(2,511,904)
	930,055	667,375
OTHER INCOME	182,976	322,551
PROFIT FROM OPERATIONS	1,113,031	989,926
FINANCE COST	(498,189)	(678,210)
SHARE OF NET PROFIT OF ASSOCIATE ACCOUNTED	614,842	311,716
FOR USING THE EQUITY METHOD	2,277,572	1,323,147
PROFIT BEFORE LEVY AND TAXATION	2,892,414	1,634,863
LEVY	(92,850)	(197,133)
PROFIT BEFORE TAXATION	2,799,564	1,437,730
TAXATION	(862,334)	(324,480)
PROFIT AFTER TAXATION	1,937,230	1,113,250
EARNINGS PER SHARE - BASIC (RUPEES)	9.39	5.40
EARNINGS PER SHARE - DILUTED (RUPEES)	9.33	5.38

SERVICE GLOBAL FOOTWEAR LIMITED AND ITS SUBSIDIARY COMPANY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2025 2025 2024 (Rupees in thousand)

PROFIT AFTER TAXATION	1,937,230	1,113,250
OTHER COMPREHENSIVE LOSS
Items that will not be reclassified to profit or loss:
Remeasurements of employees' retirement benefit obligation - net of tax	(6,452)	(18,689)
Items that may be reclassified subsequently to profit or loss: Share of other comprehensive loss of investment accounted for using the
equity method	(223)	-
Exchange difference on translation of foreign subsidiary	4,025	(2,991)
Other comprehensive loss for the year - net of tax	(2,650)	(21,680)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	1,934,580	1,091,570

SERVICE GLOBAL FOOTWEAR LIMITED AND ITS SUBSIDIARY COMPANY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY