Declining Free Cash FlowA 25.8% drop in free cash flow reduces internal funding for capex, product development, and shareholder returns. Even with strong operating cash conversion, weaker FCF limits financial flexibility and may force higher external financing if the trend persists, affecting long‑term reinvestment plans.
Elevated Absolute Debt LevelsWhile leverage ratios look moderate, the company notes high total debt. High absolute debt increases refinancing and interest‑rate sensitivity, potentially constraining investment and raising fixed costs if rates climb, thereby pressuring cash flow and strategic optionality over time.
Thin Net Profit MarginA net margin near 3.5% leaves limited buffer against input cost inflation or pricing pressure in packaged foods. Low structural margins increase earnings volatility from commodity, energy or logistics cost swings, making sustained margin recovery and profitability growth more challenging.