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 THE FINANCIAL YEAR ENDED 31 MARCH 2025 (“FYE 2025”).
For FYE 2025, the Group operated in an increasingly complex and uncertain macroeconomic environment. A combination of global headwinds and domestic pressures continued to influence the Group’s operational performance, demand outlook, and cost structures.
The continuation of elevated interest rates by major central banks, aimed at curbing infl ation, contributed to a higher cost of capital and restrained consumer spending. This environment presented challenges for investment expansion and working capital management, particularly for capital-intensive operations within the Group.
The subdued pace of global recovery, particularly in China, alongside weak demand from key export markets, weighed on sales volume and manufacturing orders in certain segments. This had downstream effects on inventory levels and capacity utilisation.
The ongoing Russia-Ukraine conflict and theescalation of the Palestine-Israel war created additional uncertainty in global trade. Selected business segments faced disruptions due to shifting trade routes, rising insurance and logistics costs, and consumer sensitivity linked to global boycott movements.
Global energy price volatility continued to exert upward pressure on input and transportation costs. The Group undertook active cost containment measures and energy efficiency initiatives to manage margin compression, particularly in manufacturing operations.
Increasing ESG regulatory requirements and stakeholder expectations prompted the Group to strengthen its sustainability governance, reporting frameworks, and climate adaptation measures. Disruptions from environmental events also underscored the need for enhanced business continuity planning.
In response to these challenges, the Group focused on enhancing operational resilience through strategic cost optimisation, diversifi cation of sourcing strategies and product innovation. These measures were integral to safeguarding profi tability and positioning the Group for sustainable long-term growth despite prevailing market uncertainties.
FYE 2025 was a year marked by persistent macroeconomic uncertainties, yet the Group demonstrated resilience and agility across its core businesses in grocery and manufacturing of paper and plastic products.
Despite these challenges, the Group remained focused on delivering value to customers while enhancing operational efficiency and ensuring longterm sustainability.
Grocery division: Expanding Consumer Reach
Our Grocery Division was a key growth driver during the year, contributing RM335.88 million or 89.45% of the Group’s revenue. With eight (8) strategically located outlets across the Klang Valley, the division capitalised on rising consumer demand for freshness, affordability, and product variety.
Amid inflationary pressures and cautious consumer spending, we prioritised the consistent availability of fresh products and deliver a superior in-store experience. By focusing on quality, value, and customer satisfaction, we enhanced store operations to align with evolving consumer expectations and successfully drove an increase in basket size per transaction.
Looking ahead, we remain committed to expanding our presence in high-potential urban locations, reinforcing our position in the competitive modern grocery landscape and capturing future growth opportunities.
Manufacturing division: driving Efficiency and Innovation
The Manufacturing Division, comprises the Paper Product and Plastics Product segments, recorded RM38.98 million in revenue, a modest decline from RM40.68 million in the previous year. The decrease was primarily due to softer demand from the localbased customer.
In response, the Group initiated cost containment measures, explored material substitution options, and continued its investment in process optimisation. These initiatives are aimed at sustaining competitiveness, reducing waste, and improving turnaround times for our clients.
By strengthening client relationships, enhancing customer satisfaction, and diversifying our customer base, we are positioning the division for more resilient and sustainable growth.
Sustainability Commitment
We view sustainability as essential to our long-term success. Across our operations, we continue to embed responsible practices, be it through improving energy efficiency in production or ensuring ethical sourcing in our retail segment. Our goal is to balance business growth with positive environmental and social impact.
The management of the 11 key sustainability matters have been disclosed in this year’s Sustainability Statement. These reflect our commitment to transparency, stakeholder engagement, and longterm value creation.
Outlook and Forward strategy
As we move into the next fi nancial year, our strategic priorities remain focused on expanding our grocery business and deepening customer loyalty. In the manufacturing segment, we aim to optimise production efficiency, reducing costs without compromising on quality, and strengthen ESG compliance to support our customers’ sustainability goals and reinforce our competitive position. While global uncertainties may persist, we remain confident that our diversified business model, anchored in consumer relevance, operational excellence, and resilience, will enable us to adapt, grow, and thrive in a dynamic operating environment.
Appreciation
The Board and I are proud of Team Versatile and their demonstration of teamwork and relentless efforts towards outstanding results for the Group for FYE 2025. On that note, and on behalf of the Board, I would also like to express our sincere appreciation to 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 confi dence in the Group. I believe that team Versatile, with the guidance of the Board and support from the management, will prevail in strengthening adoption 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 2025