Negative ProfitabilityPersistent negative net and operating margins signal structural profitability shortfalls that impair internal funding for growth and debt service. Without meaningful margin improvement through pricing, mix shift, or cost cuts, the business risks needing recurring external financing, weakening long-term stability.
High LeverageElevated leverage (D/E ~2.13) materially raises financial risk and reduces strategic flexibility. Interest and principal obligations constrain free cash for marketing, new product launches, or working capital, and increase vulnerability to demand shocks—especially important in packaged foods where margins can be cyclical.
Weak Cash GenerationLack of positive operating and free cash flow highlights liquidity strain and weak cash conversion of sales. This forces reliance on external financing or asset measures to fund operations and growth, limiting the company’s ability to invest, service debt, or withstand prolonged downturns without structural cash-flow fixes.