Negative Free Cash Flow And Falling Operating Cash FlowPersistent negative free cash flow and declining operating cash flow constrain financial flexibility, forcing reliance on financing or working-capital trade-offs. For a distribution business with inventory and perishability, this weakens the firm's ability to fund capex, absorb shocks, or reduce leverage sustainably.
Very Low Net Profit MarginA sub-1% net margin leaves little buffer against cost shocks or margin compression. Even with improved gross margins, limited bottom-line conversion implies that operational or commodity price volatility will quickly erode earnings, restricting retained earnings and long-term reinvestment capacity.
High Exposure To Commodity, Inventory And FX RisksThe business depends on perishable seafood procurement and imported goods, creating structural exposure to price swings, FX moves and spoilage. These risks amplify working-capital needs and can persistently pressure margins and cash flow, limiting predictable long-term earnings conversion.