High LeverageElevated leverage increases fixed interest costs and reduces financial flexibility, making the company more sensitive to demand downturns or raw-material price swings. Over 2-6 months this constrains capital allocation, raises refinancing risk, and limits ability to invest in growth or modernization.
Declining Revenue TrendA recent decline in revenue points to weakening demand or pricing pressure in key packaging markets. Sustained revenue contraction undermines scale economics, strains margin recovery efforts and reduces free cash flow potential, posing a structural headwind for near-term profitability and investment.
Profitability Volatility / EPS DropA sharp EPS contraction reflects volatile net income and indicates profit drivers are under pressure. This reduces retained earnings for reinvestment, weakens return metrics and signals vulnerability to cost shocks or operational inefficiencies that could persist across multiple quarters.