NAIROBI, Kenya, Sept 29 – Newly listed Shri Krishana Overseas Limited has issued a profit warning, saying its 2025 full-year earnings will fall by more than 25 percent on the back of higher borrowing costs tied to its Kisaju expansion project.
The packaging materials maker, which joined the Nairobi Securities Exchange on July 24, reported a Sh2 million profit for the first half of 2025, down from Sh6 million a year earlier.
The decline was attributed to increased finance costs, with long-term borrowings surging to Sh113 million by June 30 from Sh3.5 million a year earlier.
Half-year revenues dropped 6 percent to Sh158 million, which the company described as normal seasonality, while operating costs fell 9 percent to Sh29.9 million as management tightened spending.
“While our half-year profits reflect increased financing costs, these are strategic investments aimed at securing SKL’s long-term capacity and competitiveness,” the company said in a notice to shareholders.
“We remain confident that once the Kisaju plant is fully operational, our revenues and profitability trajectory will strengthen significantly.”
