KTC secures distributorships, boosts FY19 internal target revenue by RM177.1 million

KOTA KINABALU: Kim Teck Cheong Consolidated Bhd (KTC), a Consumer Packaged Goods distributor for third party brands as well as its own brands of products, is pleased to announce that its wholly-owned subsidiaries were appointed as distributor for five agencies.

They are Nestle Products Sdn Bhd (Nestle Products), Heineken Marketing Malaysia Sdn Bhd (Heineken Marketing), L’Oreal Malaysia Sdn Bhd (L’Oreal Malaysia), Oriental Food Industries Sdn Bhd (Oriental Food), and Sincere Match &Tobacco Fa ct orySdnBhd( Sincere Match).

The distributorships by its subsidiaries – Grandtop Marketing Sdn Bhd (Grandtop Marketing), Kim Teck Cheong (Sarawak) Sdn Bhd (KTC Sarawak), Kim Teck Cheong Sdn Bhd (KTC Sdn Bhd) and Kim Teck Cheong Distribution (KTC Distribution) Sdn Bhd – are estimated to contribute combined monthly internal target revenue of RM14.7 million, translating to RM71.6 million for the financial year ended June 2018 (FY18) for the group.

The new distributorships are estimated to increase the annual internal target revenue for FYE 2018 by 16.7 per cent to RM71.6 million and close to 41.3 per cent to RM177.1 million for FY19 assuming business remains stable. The durations vary for each of the distributorships.

Executive director of KTC, Dexter Lau said with more distributorships being in the pipeline, he foresees even further upside potential for KTC.

“This important Distributorships win is a ringing endorsement of our expertise and capability in providing market access and coverage of CPG in Sabah, Sarawak, Labuan and Brunei,” he said in a statement.

“We have come a long way since our founding in 1938. Currently, we have 7,355 sales and distribution points covering 84 districts across East Malaysia and Brunei as well as a total of 17 distribution centres with warehousing facilities, of which 9 are in Sabah, 4 in Sarawak, 2 in Labuan, and 2 in Brunei.”