Negative Profitability MarginsPersistently negative EBIT and net margins signal structural profitability issues, limiting retained earnings and reinvestment capacity. Unless gross margin drivers or operating cost structure are fixed, sustained losses will impair the firm's ability to fund growth and reward shareholders.
Weak Cash Flow GenerationNegative operating and free cash flows reduce financial flexibility and increase reliance on external funding for working capital and capex. Over months this constrains strategic investments, heightens refinancing risk, and undermines ability to absorb cost inflation or pursue brand initiatives.
Inconsistent Long-term Revenue TrendA longer-term revenue decline of ~15% indicates uneven demand or distribution loss over time. Structural revenue volatility complicates forecasting, weakens bargaining with retailers, and forces reliance on margin recovery or cost cuts to restore sustainable profitability.