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 subsidiarieswere 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 Factory Sdn Bhd (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.”
Grandtop Marketing has been working closely with Nestle Products for the past decade in Brunei in the Professional and Confectionery markets.
In recognition of Grandtop Marketing’s stability and performance, Nestle Products has appointed Grandtop Marketing for its grocery products to cater for the modern trade channel in Brunei.
Meanwhile, the appointment of KTC Sarawak by Heineken Marketing to distribute, sell and market Tiger, Anchor and Guinness brands in Kuching, Sibu and Bandar Sri Aman, Sarawak is estimated to contribute monthly internal target revenue of RM4.0 million, and shall ratify the investments in business infrastructure and warehouse facilities in Sarawak.
Tthe appointment of KTC Sarawak and KTC Sdn Bhd as distributor for L’Oreal products under the brands of L’Oreal Paris, Maybelline and Garnier in Sarawak, Sabah and Labuan is estimated to contribute monthly internal target revenue of RM5.0 million.
With the appointment of KTC as distributor, both parties aim to consolidate one distributor for Sabah and Sarawak, leveraging on KTC’s ever-ready infrastructure and vast distribution points which complement Oriental Food’s snack product market. The distributorship is estimated to contribute monthly internal target revenue of RM1.0 million.
The appointment of KTC Sarawak, KTC Distribution and Grandtop Marketing for Sincere Match under the brand of Cricket, namely Cricket ED1 original lighters, cricket ED4 electronic lighters and Flyingman Matches is estimated to contribute monthly internal target revenue of RM260,000, translating to RM1.6 million for FY18.
Source: Borneo Post Online