Declining Revenue TrendA multi-year decline in top-line reduces scale economics and weakens the company's ability to absorb fixed costs common to milling and distillation. Sustained revenue contraction limits reinvestment capacity, raises per-unit costs, and undermines medium-term margin recovery prospects.
Persistent Negative ProfitabilityOngoing negative net margins erode equity and restrict retained earnings available for capex or debt reduction. Chronic losses impair ROE, constrain strategic investment in efficiency or capacity, and increase reliance on external financing during cyclical downturns in the sugar cycle.
Debt And Cash-Flow VolatilityAlthough leverage has improved, reported high debt and volatile financing flows heighten refinancing and interest-rate risk. In a seasonal, commodity-exposed business, unstable financing patterns can force asset sales or emergency borrowing, limiting strategic options during adverse cycles.