Margin Compression Since 2024Margin compression across gross, operating and EBITDA margins since 2024 signals rising input costs or adverse product-mix shifts. If persistent, this reduces operating leverage, constrains margin expansion opportunities and forces trade-offs between pricing, marketing and long-term brand investment.
Step-up In Debt Post-2024Debt increased materially from ~12.8B to ~60B after 2024, reducing a previously conservative balance-sheet stance. Even with reported leverage still modest (~0.20), the step-up raises interest exposure, narrows strategic optionality and limits flexibility for opportunistic M&A or defensive spending.
Weak OCF Conversion & Uneven FCFOperating cash-flow conversion near 0.35–0.41 and uneven FCF (negative in 2021, modest in 2025) point to volatile working-capital dynamics and inconsistent cash quality. That variability complicates planning, may weaken resilience in downturns and could increase reliance on external funding when cycles turn.