Kim Teck Cheong returns to the black in Q3

PETALING JAYA: Kim Teck Cheong Consolidated Bhd (KTC) registered a net profit of RM3.73mil for the third quarter of the financial year ending June 30, 2019, as compared to the net loss of RM11.82mil in the corresponding quarter last year.

The improved earnings were on the back of a 28% increase in revenue to RM155.73mil, mainly contributed by its Sabah and Sarawak subsidiaries.

In a press release Monday, KTC said the increased revenue contribution from its Sabah and Sarawak operations was due to more than 7,000 sales and distribution points of the group, which covers 84 districts in East Malaysia, including Brunei.

This is also supported by its 15 distribution centres with warehouse facilities in East Malaysia and Brunei.

Additionally, the higher sales were contributed by an increase in sales activation plans and promotions.

“Our third quarter results have shown the continued strength of our infrastructure and ability to bring business growth with our business partners, as we maintain the strong momentum and execution of robust plans to deliver our three profitable quarters consecutively,” said KTC executive director Dexter Lau.

Going forward, KTC is optimistic of the distribution business segment and expects it to continue being the main contributor in terms of revenue and profit.

KTC aims to serve its existing customers better by maintaining high service standards while offering innovative service offerings, and hopes to attract new agencies to add to the group’s highly diversified portfolio of agencies.

KTC also reported a decrease in debts and saw an improvement in equity during the quarter under review, which resulted in a decline in gearing ratio, from 2.34 times to 1.73 times.
Read more at https://www.thestar.com.my/business/business-news/2019/05/27/kim-teck-cheong-returns-to-the-black-in-q3#MgL01owEva7W2LbC.99

Kim Teck Cheong returns to the black in Q3

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