Packaging Firm SKL Profits Dip to Sh2.03m

Shri Krishana Overseas (SKL) Ltd, a leading provider of packaging solutions, has reported a profit of KES 2.03 million for the period ended June 30, 2025, compared to a profit of KES 6.85 million recorded over the same period last year.

Revenue for the period totalled KES 158.6 million, representing a 6% decline from KES 168.4 million in 2024. SKL attributed the dip in revenues to seasonal fluctuations in demand, adding that recovery is expected by year-end.

Despite the revenue decline, SKL achieved notable cost efficiencies, with operating expenses dropping by 9%, from KES 32.6 million to KES 29.9 million, reflecting strong management efforts to streamline operations.

“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.

Finance costs increased to KES 15.9 million from KES 10.3 million, largely due to new borrowings undertaken to finance the company’s Kisaju plant project in Kitengela. The facility, whose first phase is expected to be operational by the end of 2025, marks a major step in SKL’s expansion strategy. Civil works are on track for completion by November 2025, with full production targeted by the first quarter of 2026.

“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,” noted Dr. Sonvir.

Looking ahead, SKL projects a profit reduction of over 25% for the full year due to financing costs related to ongoing capital projects. However, management remains confident that the investments being made will yield stronger earnings growth from 2026 onwards.