Inventory & Cash-Flow StrainA large inventory rebuild materially increases working-capital needs and has driven H1 operating cash outflow, raising refinancing and liquidity risk over several quarters. If sell-through or channel timing lags, the company could face margin pressure, higher financing costs, or constrained ability to fund marketing and operations.
Airfreight & Tariff Cost HeadwindsPersistently elevated logistics and tariff costs are a structural margin headwind for an internationally distributed infant-formula business. These costs erode gross margin and cash flow unless permanently absorbed through price, product mix, or supply-chain redesign, complicating multi-quarter profitability planning.
Raw-Material Supply ConstraintsLimited domestic goat-milk availability forces reliance on offshore suppliers, increasing lead times, input costs and tariff exposure. This structural supply constraint can cap volume growth, raise working-capital needs, and complicate scaling in priority markets unless resolved with longer-term supplier contracts or alternative formulations.