Elevated Financial LeverageElevated and rising leverage reduces balance-sheet resilience and increases refinancing and interest-rate risk. High leverage can constrain investment flexibility, limit downside protection in a downturn and force prioritisation of debt servicing over growth or returns.
Slowing Revenue And Flat VolumesSlowing top-line growth and flat units indicate demand sensitivity and reliance on mix and pricing to sustain revenue. If volume recovery stalls, long-term growth will depend on expanding market share, store openings or faster digital adoption, raising execution demands on management.
Operational Execution And Cost PressureForecasting errors, higher operating costs and wage inflation are structural execution risks that erode margins and can depress sales if availability falters. Persistent cost inflation or execution lapses would pressure margins and force trade-offs between price, service and investment.