Inconsistent Operating Cash FlowRepeated negative and volatile operating cash flow signals fragile liquidity and working-capital sensitivity to procurement and seasonality. This constrains the company's ability to self-fund growth, increases reliance on external financing, and raises short-to-medium-term risk if margins or sales slow.
Rising Debt Levels / Moderate LeverageA trend of increasing debt raises interest and refinancing risk, particularly given inconsistent cash generation. Moderate but rising leverage limits strategic flexibility, may increase financing costs, and amplifies downside risk if commodity costs or export conditions deteriorate.
Volatile Profit MarginsSignificant margin swings and a marked gross profit decline indicate sensitivity to input costs, product mix, and pricing power. Persisting margin volatility undermines free cash generation and makes earnings less predictable, challenging sustainable margin improvement without structural cost or pricing changes.