ON BEHALF OF THE BOARD OF DIRECTORS (“THE BOARD”) OF VERSATILE CREATIVE BERHAD (“VCB”) AND ITS SUBSIDIARIES (“THE GROUP”), I AM PLEASED TO PRESENT THE ANNUAL REPORT FOR FINANCIAL YEAR ENDED 31 MARCH 2024 (“FYE 2024”).
During FYE 2024, the Group continued to operate within a challenging environment. The main contributors were tight monetary policies and elevated inflation. The impact of these factors was partially mitigated by robust wage growth and drawdown from excess savings. China’s growth rebounded briefly in early 2023 after it re-opened in the aftermath of the COVID-19 pandemic. The rebound was rather shortlived, as economic activities were dampened by a property market downturn and softer external demand. Meanwhile, advanced economies experienced a rather mixed growth performance. Nevertheless, softening demand alongside the reopening of economies allowed supply chain conditions to normalise to prepandemic levels, while recovery in global tourism activities partially offset the moderation in goods trade.
The geopolitical tensions in the Middle East introduced new uncertainties and concerns of disruptions in the global market. After the escalation of the Russia-Ukraine war, the world is now witnessing an all-out Palestine-Israel war, which led to the boycott of any product that has connections to Israel, which negatively impacted several industries. In addition, high energy prices continued to put pressure on the cost of doing business, adding to increased production expenses and supply chain challenges.
FINANCIAL PERFORMANCE
In FYE 2024, revenue continued to climb to RM270.63 million as compared to RM145.28 million in the financial year ended 31 March 2023 (“FYE 2023”) mainly contributed by the positive growth in Grocery Division. During FYE 2024, the Grocery Division operated six (6) stores in the Klang Valley, which contributed a total revenue of RM229.65 million, representing 84.86% of the Group’s revenue in FYE 2024.
The Group’s Manufacturing Division, which comprises Paper Product Division and Plastics Product Division, recorded a lower revenue of RM40.68 million as compared to FYE 2023 of RM49.24 million due to the softening demand from the pharmaceutical industry and food & beverage industry.
However, despite the lower revenue recorded for the Manufacturing Division, gross profit margin improved in both divisions.
A detailed review of the performance and results of the Group’s major segments is set forth under the Management Discussion and Analysis in this Annual Report.
SUSTAINABILITY
The Group acknowledges the need to balance our business sustainability with responsible environmental and social considerations. The Group continues to endorse principles of sustainability in its business operations and corporate activities. A total of 9 out of the 11 common sustainability matters prescribed in the Main Market Listing Requirements of Bursa Malaysia Securities Berhad are disclosed in the Sustainability Statement in this annual report.
OUTLOOK AND FUTURE STRATEGIES
We are positive about the future of our Grocery Division and expect to benefit from the opening of more outlets in the future. We will also continue to work diligently to increase productivity and efficiency in our Manufacturing Division.
APPRECIATION
The Board and I are proud of team Versatile and their demonstration of teamwork and relentless efforts outstanding results for the Group for financial year under review. On that note, on behalf of the Board, I would also like to thank team Versatile for their resilience and dedication.
My warmest regards are also extended to our shareholders, esteemed customers and suppliers, financial institutions and other stakeholders for their continued support and confidence in the Group. I believe that team Versatile, with the guidance of the Board and support from the management, will prevail in strengthening adaptation of various initiatives for sustainability to meet standards and demand, thus enhancing a sustainable future for the Group moving forward. May we continue to work together and strive forward to reach for more opportunities and achieve business growth and success for the betterment of the Group in the coming years.
Tan Sri Dato’ Seri Mohd Shariff Bin Omar
Independent Non-Executive Chairman
22 July 2024
CG Report