Weak Free Cash Flow ConversionLow conversion of earnings into free cash flow constrains the company's ability to self-fund growth initiatives, larger capital projects, or shareholder returns. Over months, this can pressure liquidity cushions and increase sensitivity to working-capital swings in retail.
Thin Net Profit MarginsRetail grocery is structurally low-margin; a modest net margin leaves limited room to absorb cost inflation or aggressive price competition. Over time, this compresses free cash flow and earnings resilience versus peers with higher margin efficiencies or scale advantages.
Rising Debt Trend To MonitorAlthough leverage is currently low, an upward trend in debt, if it continues, would reduce financial flexibility and raise interest exposure. In a rising-rate environment or slower cash conversion, higher debt could magnify downside risk and limit strategic options.