Declining Free Cash FlowA sharp FCF decline limits internal funding for growth, capex, or shareholder returns without increasing borrowing. Over several quarters this can force tradeoffs between investing in logistics capacity or product R&D and maintaining balance sheet strength, constraining strategic optionality.
Elevated Total Debt LevelAlthough leverage ratios look moderate, a high absolute debt stock raises sensitivity to rising interest rates and covenant risk. If rates or funding costs increase, interest expense could compress margins and reduce cash available for reinvestment in core logistics and food businesses.
Relatively Thin Net MarginA single‑digit net margin limits the company's buffer against commodity, energy, or labor cost inflation common in packaged foods and logistics. Margin pressure would translate quickly into lower free cash and make sustaining investment or dividends harder without pricing power or structural cost cuts.