Inconsistent Cash FlowOperating cash flow not reliably converting from reported net income and recent negative free cash flow growth undermine the company’s ability to self-fund capex, pay steady dividends, or reduce debt. Persistent cash conversion issues constrain strategic flexibility and increase reliance on external financing over time.
Profitability VolatilityVolatile net margins reduce earnings predictability and complicate long-term planning for pricing, procurement, and shelf-space negotiations with retailers. In a commoditized packaged-food market, margin swings can erode returns and make sustained reinvestment or dividend policies more challenging.
Rising Total Debt TrendAn upward trend in total debt, even from a manageable base, raises the risk of higher interest costs and reduced headroom for future borrowing. If cash flow issues persist, rising leverage could pressure credit metrics and limit the company’s ability to pursue growth or absorb input-cost shocks.