Negative Free Cash Flow Due To High CapexPersistent negative free cash flow driven by heavy capex erodes financial flexibility. Over time this can force external financing, delay returns to shareholders, and constrain strategic initiatives unless capex converts to durable capacity that meaningfully lifts margins and volumes.
Inconsistent Operating Cash GenerationVolatile conversion of earnings to cash reduces the reliability of reported profits as a funding source. This inconsistency complicates planning for working capital, dividend policy, and debt servicing, and raises the cost of capital over the medium term.
Exposure To Commodity-linked Input CostsHeavy reliance on raw fruit/vegetable inputs ties margins to commodity price volatility and seasonal yields. Structural input-price risk can compress margins, require higher working capital for inventories, and limit predictability of margins absent durable pricing power or hedging mechanisms.