Cash-flow VolatilityMulti-year negative free cash flow undermines the firm’s ability to self-fund capex, inventory and strategic initiatives. The 2026 recovery is encouraging but history of volatility raises risk that cash conversion will revert, pressuring liquidity, reinvestment capacity and dividend sustainability.
Thin Net MarginsVery slim net and modest EBIT margins mean limited buffers for cost increases or sales volatility. Small adverse moves in commodity or labor costs, or weaker traffic, can quickly erode profitability, constraining retained earnings and limiting capacity to improve returns over the medium term.
Rising Debt TrendThe post-2024 step-up in debt increases fixed obligations and reduces financial headroom. Even with moderate leverage today, the upward trend heightens refinancing and interest-rate sensitivity risk if cash generation weakens, making leverage a watch item for solvency in stressed scenarios.