Declining RevenueA sequential revenue decline erodes scale and can amplify per-unit fixed costs. If top-line weakness persists, it will limit margin expansion, reduce reinvestment capacity for distribution or product innovation, and make it harder to restore growth without structural actions to regain volumes or market share.
Weak Return On EquityROE at 8.9% signals suboptimal deployment of shareholder capital. Sustained low ROE constrains the company's ability to attract capital, limits retained-earnings-driven growth, and implies that incremental investments may generate modest returns versus alternatives, pressuring long-term shareholder value creation.
Regulated Pricing & Seasonality RiskReliance on fertilizer sales exposed to regulated or subsidy-linked pricing and seasonal crop cycles reduces pricing power and predictability. Policy shifts or subsidy delays can structurally compress margins and create volatile demand, complicating medium-term planning and cash-flow visibility.