VERSATILE CREATIVE BERHAD: A Deep Dive into Q4 FY2025 Performance

Greetings, fellow investors and market enthusiasts! Today, we’re unboxing the latest financial report from VERSATILE CREATIVE BERHAD (VCB) for its fourth quarter ended 31 March 2025. This report offers a crucial glimpse into the company’s operational health and strategic direction. While VCB has demonstrated remarkable growth in its full-year profit, it’s also navigating shifts within its diverse business segments. Let’s peel back the layers to understand the forces driving its performance and what the future might hold.

Core Financial Highlights: A Quarter of Growth Amidst Shifting Sands

VCB has closed its financial year on a strong note, showcasing robust growth in both its quarterly and full-year performance. Here’s a snapshot of the key financial figures:

Quarterly Performance (Q4 FY2025 vs Q4 FY2024)

In Q4 FY2025, VCB’s revenue surged by

to RM103.17 million compared to RM83.94 million in the same quarter last year. This impressive top-line growth translated into an even more significant improvement in profitability, with Profit Before Tax (PBT) jumping by

to RM4.13 million, and Profit After Tax (PAT) skyrocketing by

to RM4.45 million. Basic Earnings Per Share (EPS) followed suit, increasing by

to 0.76 sen.

Full-Year Performance (FY2025 vs FY2024)

For the full financial year, VCB’s performance was equally commendable. Total revenue expanded by

to RM375.48 million. PBT saw a remarkable increase of

to RM19.74 million, and PAT surged by

to RM13.61 million. Basic EPS also climbed by

to 2.71 sen, reflecting a strong year of earnings growth.

Diving Deeper: Segmental Performance

VCB’s diverse business segments tell a story of strategic recalibration and growth engines. Let’s look at how each division contributed to the overall results in Q4 FY2025 compared to the same quarter last year:

Revenue by Segment (Q4 FY2025 vs Q4 FY2024)

The

was the undisputed star, with revenue soaring by 27.95% to RM94.43 million. This significant increase was primarily driven by higher customer footfall and the strategic opening of an additional outlet during the quarter. In contrast, the

experienced an 11.06% decrease in revenue due to lower demand from a major customer, while the

saw a 21.95% decline, mainly attributed to the discontinuation of a major customer’s product. The

, though smaller in scale, saw a modest increase in sales due to higher customer demand.

Operating Profit by Segment (Q4 FY2025 vs Q4 FY2024)

The

strong revenue performance translated into a 74.85% surge in operating profit to RM4.60 million. However, the

operating profit decreased by 64.08% due to lower revenue. The

recorded a higher operating loss of RM0.80 million, mainly due to a one-off write-off of plant and equipment amounting to RM0.49 million. Excluding this, the division’s operating results showed improvement due to lower operating costs.

Financial Health and Cash Flow

As of 31 March 2025, VCB’s financial position appears solid. Total assets increased to RM187.13 million from RM178.64 million, while total equity rose significantly to RM108.00 million from RM81.22 million, largely driven by a substantial subscription of shares by non-controlling interest and revaluation gains on leasehold land and buildings. This contributed to a healthy increase in Net Assets per share to RM0.39 from RM0.29, a

improvement. Total liabilities decreased to RM79.13 million from RM97.42 million, indicating a reduction in overall debt burden.

From a cash flow perspective, net cash from operating activities stood at RM5.29 million for FY2025, a decrease from RM23.81 million in FY2024. This was primarily due to changes in working capital, particularly a significant decrease in trade and other payables. Net cash used in investing activities decreased to RM4.82 million from RM11.81 million, reflecting lower capital expenditure. Net cash used in financing activities was RM2.51 million, mainly due to repayment of lease liabilities and borrowings, partially offset by the subscription of shares by non-controlling interest.

Outlook and Prospects: Navigating Challenges, Seizing Opportunities

Looking ahead, VCB remains optimistic about its core businesses while strategically expanding into new growth areas. The company acknowledges the inherent seasonal and cyclical nature of its operations across its four main business segments.

For the

, VCB is confident that overall demand will remain stable. The company’s strategy revolves around:

• Credit Risk Management: Ensuring financial stability in uncertain economic times.
• Supply Chain Resilience: Securing diverse supply sources to minimize disruptions.
• Continuous Innovation: Maintaining product quality and competitiveness through new developments.
• Production Efficiencies: Enhancing operational efficiency to mitigate rising operating costs and external factors like economic downturns.

The

is poised for significant expansion, with the Board’s intention to open more outlets in the current financial year. Given the constant and essential demand for grocery products, this division is expected to provide a long-term growth prospect for the Group. This strategic diversification into essential goods appears to be a key driver for VCB’s future trajectory.

Looking Ahead: What’s Next for VCB?

VCB’s latest report highlights its resilience and strategic agility in a dynamic market. The shift in emphasis towards the Grocery Division, alongside efforts to optimize traditional segments, suggests a forward-looking approach to ensure sustainable growth.

As Malaysian retail investors, it’s crucial to consider how VCB’s expansion plans, particularly in the grocery sector, will unfold and impact its overall profitability. Do you think the company can maintain this growth momentum in the next few years, especially with its aggressive expansion in the grocery sector? Share your thoughts and insights in the comments section below!

Stay tuned for more in-depth analyses of Malaysian companies!