Negative Operating And Free Cash FlowA material cash-flow deficit (~-¥593M FCF) is a structural risk: it forces reliance on external funding, limits reinvestment capacity, and can pressure operations during slower periods. Persistent cash burn undermines the path to self-funded growth and heightens refinancing risk.
Elevated LeverageDebt-to-equity near 1.75x (and historically >2x) constrains financial flexibility for a cyclical consumer business. High leverage raises interest and covenant risk, reducing the firm's ability to invest through downturns and increasing sensitivity to any cash-flow shortfalls.
Weak Profitability And Thin MarginsNegative EBIT/net income and a ~1.4% EBITDA margin show limited earnings resilience. Without sustained operating profit, the company cannot reliably self-fund growth or repay debt, making recovery contingent on lasting margin improvement or external capital.