Weak ProfitabilityLow gross margin and negative EBIT point to structural margin pressure from cost base, pricing, or mix. Over months this limits internal funding for marketing and capex, reduces ability to reward shareholders, and necessitates operational or pricing changes to restore sustainable profitability.
Poor Cash GenerationPersistent negative free cash flow and operating cash conversion create lasting financing risk, reducing flexibility to invest or absorb shocks. Without a durable turnaround in OCF, the company may need external financing, increasing cost of capital and constraining long‑term strategic initiatives.
Very Low ReturnsROE near zero indicates the business is generating minimal returns on shareholder capital. Structurally, this discourages reinvestment and can impair ability to attract partners or capital. Sustained ROE improvement requires both margin recovery and better capital efficiency.