High Absolute DebtDespite D/E improvement, the firm retains substantial absolute debt which keeps interest and refinancing exposure elevated. In a capital-intensive, seasonal business, high debt can constrain investment choices, limit downside protection, and amplify earnings volatility during weak cycles.
Operating & Cash-Flow VolatilityFluctuations in EBIT margins and historical swings in cash flow reduce predictability of earnings and FCF. For a cyclical agro-processing company, volatile operating metrics complicate planning, weaken credit metrics at troughs, and increase the need for conservative liquidity buffers.
Commodity & Policy ExposureThe business is structurally exposed to government pricing, ethanol mandates and seasonal cane yields. Regulatory changes or poor harvests can materially alter volumes, realizations and margins, making core profitability and planning sensitive to external policy and agricultural cycles.