Newly listed manufacturing firm Shri Krishana Overseas PLC has recorded a 70.4% decline in after-tax profit to KES 2.03 million for the six months to June 2025 from KES 6.85 million in a similar period last year.
Key Performance Highlights
- Revenue: dropped slightly by 5.8% to KES 158.7 million from KES 168.5 million
- Operating profit: declined by 13.8% to KES 18.4 million from KES 21.4 million
- Operating costs: dropped by 9% to KES 29.9 million from KES 32.6 million
- Profit before tax: slumped 76.9% to KES 2.6 million from KES 11.05 million.
The packaging firm’s marginal dip in revenue was mainly driven by a seasonal slowdown in business. In the period under review, the firm’s operational costs fell by 9% to KES 29.9 million, mainly driven by prudent cost management.
The plunge in net profit to KES 2M from KES 6.9M a year earlier is attributed to rising finance costs driven by borrowing to fund the new plant in Kisaju, Kitengela. As of June 30, 2025, SKL’s long-term borrowings stood at KES 113 million, up 3,128.5% from KES 3.5 million in the same period last year, and consequently, finance costs jumped 53.5% to KES 15.9 million from KES 10.4 million in 2024.
As a result of the borrowing in respect of development of the Kisaju plant and the attendant finance costs, Shri Krishana expects its full-year net profit to fall by at least 25%. In accordance with the regulations of the Capital Markets Authority (CMA), Shri Krishana issued a profit warning to notify investors of the anticipated decline in profits. In 2024, the company generated KES 310M in revenues and KES 10.2M in net income, and a 25% dip would place the net income in the region of KES 7.7 million.
Shri Krishana’s 2025 Strategic Development
The firm was listed on the Nairobi Securities Exchange (NSE) SME Market segment on July 24, 2025, becoming the first packaging firm to join the bourse. The firm joined the NSE via an Initial Public Offering route, listing 50.5 million shares at KES 5.90 per share. The move marked the achievement of a key 2025 company objective.
The firm has invested in a 5-acre industrial park in Kisaju, Kitengela, and the new plant is set to commence the first phase of its operations by the end of the year, and is expected to be in full production by March 2026. The plant will increase the firm’s annual capacity sevenfold to 22,000 tonnes, and this is exppected to result in more revenue generated.
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