Weak Net ProfitabilityDespite rising revenue and gross margins, net profit margin fell to 2.3%, signalling material operating or non-operating cost pressure downstream. Low bottom-line profitability constrains retained earnings, limits return to shareholders, and weakens long-term ROE improvement prospects.
Suboptimal Cash ConversionPositive FCF growth (877.7m) is encouraging, but a 0.6 FCF/net income ratio shows only partial conversion of reported earnings into discretionary cash. Persistent gaps reduce capacity for sustained dividends, rapid deleveraging, or large capex without tapping external funding.
Earnings Per Share DecliningNegative EPS growth implies per-share earnings have fallen despite top-line gains, raising concerns about margin sustainability, share count effects, or higher non-operating costs. Continued EPS contraction would impair long-term shareholder returns and confidence in profit quality.