Negative Free Cash FlowNegative free cash flow, despite operational profitability, signals that capital expenditures or working capital are consuming cash. Over months this can constrain the ability to fund expansion, reduce debt, or return capital unless cash conversion improves or capex is rebalanced.
Need For Improved Cash ManagementManagement must address cash conversion by optimizing inventory, capex timing, or receivables. If unresolved, persistent cash management shortfalls can limit strategic flexibility, slow new store rollouts, and increase reliance on external funding over the medium term.
Geographic Concentration RiskConcentration in two regions increases exposure to localized economic, demographic or regulatory shifts. This limits diversification benefits and creates a structural risk that could pressure sales and growth if regional demand softens or competition intensifies over the coming quarters.