Steep Revenue DeclineSustained, large revenue declines materially weaken scale economics in agriculture where fixed costs and seasonal cycles matter. Falling top-line reduces ability to cover orchard maintenance and processing overhead, weakens bargaining power with distributors, and constrains reinvestment for yield improvements.
Negative Profitability And Thin Gross MarginsNegative net margins and very low gross margin signal structural profitability problems or adverse cost/pricing dynamics. Persistent losses and negative ROE erode shareholder capital, limit retained earnings for reinvestment, and make it harder to achieve sustainable returns even if revenue stabilizes.
Severe Cash Flow WeaknessVery weak and negative free cash flow constrains ability to fund working capital, capital expenditures and orchard upkeep without external financing. This raises refinancing risk during off-seasons, risks deferred maintenance that hurts future yields, and limits strategic investments to restore margins.