Working-capital & Cash-flow StrainA planned inventory rebuild is creating persistent operating cash outflows and elevating net working capital needs. Reliance on an increased working-capital facility signals ongoing liquidity demands that can constrain reinvestment, raise financing costs, and pressure execution until sell-through normalizes.
Airfreight, Tariff & Raw Material Cost PressureMaterial and logistics cost headwinds are structural risks to margin sustainability. Elevated freight/tariff burdens and constrained goat milk supply force offshore sourcing, longer lead times and higher unit costs, reducing gross margin resilience and complicating margin forecasting across quarters.
Regulatory & Industry-quality RiskPersistent regulatory shifts and sector quality incidents can disrupt market access and consumer confidence. Changes in FDA/market access, competitor approvals, and occasional recalls require ongoing compliance spend and can depress demand or increase costs, posing lasting execution risk in key markets.