BUSINESSMARKETS

Packaging Company Listed on the NSE 2 Months Ago Issues Profit Warning

Full-year profit expected to drop by more than 25% due to costs of the borrowing

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Shri Krishana Overseas Limited
The firm listed on the Small and Medium Enterprises (SME) Market Segment.
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Shri Krishana Overseas Limited (SKL) Plc, a packaging solutions provider and listed at the Nairobi Securities Exchange (NSE) barely two months ago, has issued a profit warning. This is after its half-year results for the period ended 30th June  2025, showed a massive 70.4% plunge in net earnings to KSh 2.03 million from KSh 6.85 million in 2024.

Owners of Shri Krishana Overseas Limited said full year profits are expected to drop by more than 25% because of costs of the borrowing secured to complete its Kisaju project in Kitengela. The firm is currently constructing a new state of the art plant in Kajiado, projected to increase production to 24,000 tonnes of corrugated boxes. The firm has a rich tapestry of services ranging from cutting-edge packaging solutions to top-tier printing services and machinery.

Unaudited Shri Krishana financials show a drop in revenues from KSh 168.4 million in June 2024 to KSh 158.7 million in June 2025. The firm attributes this 6% drop to normal volatility owing to seasonality of the business. Gross profit therefore sank from KSh 51.8 million to KSh 48.4 million during the period under review.

According to the company’s board, the subdued half-year performance is attributed to huge borrowings to finance its Kisaju project. The firm’s long term borrowings as at June 30th, 2025 was KSh 113 million up from KSh 3.5 million as at June 30th, 2024. SKL also acquired additional machinery to increase production capacity at its industrial area plant.

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The firm says its strategic plan, which also involved listing at the NSE on 24th July 2025, is on schedule. Its investment in the new plant in Kisaju, Kitengela is on course to commence the first phase of operations by the end of 2025, and full production by the end of the first quarter of 2026.

Civil works on the plant project are scheduled for completion in the next two months. The current share price of Shri Krishana, with a market capitalization of KSh 415 million, is KSh 8.00. SKL closed its IPO day on July 24th 2025 at KSh 5.90 and has since gained 39.3% on that price valuation, over the last past 2 months alone.

The faces behind Shri Krishana Overseas Limited are Dr Sonvir Singh, Managing Director and co-founder of the firm and Nirmal Chaudhary, the firm’s Financial Director. These two individuals founded the firm in 2009. Chaudhary relocated to Kenya from India in 2007 and co-founded SKL, bring in her immense expertise and academics, including a Masters in Computer Science and Diploma in Finance and Accounting,

The firm listed on the Small and Medium Enterprises (SME) Market Segment through an introduction, valuing the transaction at an estimated KSh 298 million.  The company offers a range of packaging solutions including corrugated cartons and boxes, adhesive labels, non-woven bags, strapping rolls and rubber bands, promotional items and printing services. Some of SKL’s clients include Sian Group, Laboratory and Allied Limited, Elgon Kenya, Dave Flowers and Daima Milk.

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Written by
JACKSON OKOTH

Jackson Okoth writes for Business Today. He specializes in capital and money markets, energy sector, manufacturing, real estate, co-operatives sector, technology and agriculture. He can be reached on email at editor [at] businesstoday.co.ke

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