Negative Free Cash Flow From CapexSignificant capex causing negative free cash flow can strain liquidity and force external financing or slower shareholder returns if sustained. Even with strong operating cash flow, persistent negative FCF limits the company’s ability to self-fund growth or absorb shocks over the next several quarters.
Slight EBIT Margin CompressionEven a modest fall in EBIT margin signals pressure on operating efficiency, possibly from rising input costs or competitive pricing. If this trend continues it can erode operating leverage, reduce free cash flow and limit the company’s ability to invest in brand and distribution expansion.
Negative EPS GrowthA decline in EPS near 5% indicates earnings per share under pressure, which may reflect margin headwinds, one-off costs or dilution. Persistent negative EPS growth can constrain dividend capacity, investor confidence and limit flexibility for strategic M&A or premium expansion.