Declining RevenueA >20% decline in revenue represents a material shrinkage of the company’s top line, eroding operating leverage and compressing long-run margin potential. Lower sales reduce ability to absorb fixed costs and constrain reinvestment and deleveraging over the coming months.
High LeveragePersistently high debt levels increase interest expense and reduce financial flexibility, making the firm vulnerable to cash flow volatility. Elevated leverage limits strategic options, raises refinancing risk, and can pressure margins if sales remain subdued.
Weak Operating ProfitabilityNegative EBIT demonstrates core operations are currently loss-making, indicating structural margin issues. Sustained weak operating profitability undermines free cash flow durability, forces reliance on balance sheet fixes, and complicates long-term recovery without operational turnarounds.