Negative Operating And Free Cash FlowPersistent negative operating and free cash flow constrains the company’s ability to self-fund marketing, inventory and R&D required to scale OTC brands. Continued cash burn increases reliance on external financing, which can dilute shareholders or raise borrowing costs and limit strategic optionality over the medium term.
Ongoing Profitability ShortfallsSustained negative net profit and EBIT margins indicate the business model has yet to achieve operating leverage. Without durable margin expansion, the company will struggle to generate returns on invested capital, hindering reinvestment and making long-term value creation dependent on material margin or revenue improvements.
Modest Revenue GrowthOnly marginal top-line growth limits the company’s ability to leverage fixed costs and achieve scale economies in manufacturing, marketing and distribution. In a competitive consumer healthcare market, tepid revenue momentum raises the bar for product innovation or channel expansion to sustainably reverse losses.