KTC says the distributorships are estimated to contribute combined monthly internal target revenue of RM14.7 million, translating to RM71.6 million for the financial year ending June 30, 2018 for the Group. (Logo taken from KTC’s website)
KUALA LUMPUR: Three subsidiary companies of Kim Teck Cheong Consolidated Bhd’s (KTC) have been appointed as distributor for Nestle Products Sdn Bhd, Heineken Marketing Malaysia Sdn Bhd, L’Oreal Malaysia Sdn Bhd, Oriental Food Industries Sdn Bhd and Sincere Match & Tobacco Factory Sdn Bhd.
KTC said the subsidiaries are Kim Teck Cheong (Sarawak) Sdn Bhd, Kim Teck Cheong Sdn Bhd and Kim Teck Cheong Distribution Sdn Bhd.
The distributorships are estimated to contribute combined monthly internal target revenue of RM14.7 million, translating to RM71.6 million for the financial year ending June 30, 2018 for the Group.
Further, the new distributorships are estimated to increase the annual internal target revenue for financial year 2018 by 16.7 per cent to RM71.6 million and close to 41.3 per cent to RM177.1 million for financial year 2019 assuming business remains stable.
It said the durations vary for each of the distributorships.
“With more distributorships being in the pipeline, we foresee 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 (consumer packaged goods) in Sabah, Sarawak, Labuan and Brunei.
“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 nine are in Sabah, four in Sarawak, two in Labuan, and two in Brunei,” said KTC executive director Dexter Lau Wei Dick.
Going forward, Lau said the company aims to leverage on its expanded business infrastructure capacities and geographic presence in Sabah, Sarawak, Labuan and Brunei to generate higher revenue.
“To add to this, we are also excited about a few more opportunities in the pipeline that we are working hard on and we hope to deliver more good news in the near future,” he said.
Source: New Straits Times