Bottom FISH rebound???
Thursday, January 11, 2018
Kim Teck Cheong units secure five distributorships
January 10, 2018 21:53 pm +08
KUALA LUMPUR (Jan 10): Sabah-based consumer package goods manufacturer and distributor Kim Teck Cheong Consolidated Bhd (KTC) said four of its subsidiaries have been appointed as distributors for five agencies, including Nestle Products Sdn Bhd and Heineken Marketing Malaysia Sdn Bhd.
The other three agencies are: L'Oreal Malaysia Sdn Bhd, Oriental Food Industries Sdn Bhd and Sincere Match & Tobacco Factory Sdn Bhd.
The deals involve the distribution of grocery products from Nestle to Brunei; Tiger, Anchor and Guinness beers from Heineken to Kuching, Sibu and Bandar Sri Aman in Sarawak; L'Oreal Paris, Maybelline and Garnier products for L'Oreal to Sabah, Sarawak and Labuan; snacks like Rota, Super Ring and Jacker under Oriental Food to Sabah and Sarawak; and Cricket lighters and Flyingman Matches from Sincere Match to East Malaysia and Brunei.
In a statement, KTC said the distributorships are estimated to contribute combined monthly internal target revenue of RM14.7 million.
"The new distributorships are estimated to increase the annual internal target revenue for the financial year ending June 30, 2018 (FY18) by 16.7% to RM71.6 million and close to 41.3% to RM177.1 million for FY19, assuming business remains stable. The durations vary for each of the distributorships," it said.
KTC executive director Dexter Lau Wei Dick said with more distributorships coming in the pipeline, the group foresee even further upside potential for KTC.
"These important distributorship wins are a ringing endorsement of our expertise and capability in providing market access and coverage of consumer packaged goods in Sabah, Sarawak, Labuan and Brunei," he added.
Going forward, Lau said the group aims to leverage on their 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.
Shares in KTC closed up one sen or 5.26% at 20 sen, for a market capitalisation of RM102.06 million.