Shri Krishana Overseas (SKL) Ltd has reported a profit of Ksh 2.03 million for the period ended June 30, 2025, a sharp drop from the Ksh 6.85 million recorded in the same period last year.
The leading packaging solutions provider said revenue for the half-year stood at Ksh 158.6 million, down 6 per cent from Ksh 168.4 million in 2024. The company attributed the decline to seasonal fluctuations in demand but expressed optimism about a rebound in the coming months.
“Revenues dropped as a result of seasonality in business, but we expect revenues to recover by the end of the year,” SKL Managing Director, Dr Sonvir Singh, said.
Despite the lower revenues, the company managed to cut costs, achieving a 9 per cent reduction in operating expenses. Expenditure fell from Ksh 32.6 million last year to Ksh 29.9 million this year. SKL credited the decline to strong management efforts aimed at streamlining operations and improving efficiency.
The company’s financing costs, however, rose to Ksh 15.9 million from Ksh 10.3 million in 2024. The increase was linked to new borrowings that SKL undertook to fund its Kisaju plant project in Kitengela.
Dr Singh said the plant, which is currently under construction, is a key part of the company’s long-term growth plans.
“The higher financing is the result of our investment in the Kisaju plant. This facility is central to our growth strategy because it will increase SKL’s production capacity, create jobs, and position us to better serve rising demand for packaging solutions across the region,” he said.
According to SKL, civil works at the plant are progressing as planned and are expected to be completed by November 2025. The first phase of the facility is scheduled to become operational by the end of the year, with full production targeted for the first quarter of 2026.
Looking ahead, SKL warned that profits for the full year are likely to drop by more than 25 per cent due to higher financing costs tied to ongoing capital projects.
However, the management expressed confidence that the investments being made will pay off in the long run.
“We are confident that the Kisaju plant and other capital investments will strengthen our earnings growth from 2026 onwards,” Dr Singh said.
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