Weak Free Cash FlowA sharp fall in free cash flow growth (-141%) indicates material cash conversion volatility. Weak operating cash relative to earnings (OCF/net income ~0.44) can constrain working capital, inventory and promotional spend, limiting the firm's ability to sustain expansion or absorb shocks.
Low Net MarginDespite healthy gross margins, a modest net margin (~5.4%) shows operating expenses and overheads materially compress profits. Persistent elevated SG&A or distribution costs may limit retained earnings, slowing reinvestment and the build-up of durable free cash flow.
Regulatory And Distribution DependenceGrowth relies on maintaining retail shelf space, distributor relationships and regulatory approvals in export markets. Regulatory hurdles or distributor setbacks are structural risks that can slow market entry, constrain diversification and increase compliance or go-to-market costs.