High LeverageDebt materially exceeds equity, signaling elevated financial leverage that increases refinancing and interest-rate risk. High leverage constrains capital allocation, reduces strategic flexibility for estate investment, and magnifies the impact of revenue or margin shocks on solvency over the medium term.
Negative ProfitabilityPersistent negative EBIT and net margins indicate the company fails to convert strong gross margins into operating profits, likely due to high operating or non-operating costs. Continued unprofitability erodes equity, limits reinvestment capacity and undermines creditor and investor confidence long term.
Inconsistent Revenue GrowthStagnant and uneven top-line growth weakens the firm's ability to scale margins and deleverage. In a mature, commodity-driven tea market, lack of sustained revenue expansion increases reliance on cost cuts or volatile price cycles, reducing visibility into durable earnings improvement.