Thin Net ProfitabilityA net margin near 2% leaves limited buffer for adverse shifts. Structural cost increases (excise, shipping, or marketing) or slower growth could quickly compress profitability, constraining reinvestment, dividend or buyback capacity and making earnings sensitive to expense volatility.
Regulatory & Compliance ExposureSelling age-restricted nicotine products creates ongoing structural risk: varying national regulations, stricter age verification, marketing limits and excise/VAT changes can raise costs or restrict channels. These regulatory dynamics can durably reduce addressable markets and margin sustainability.
Concentrated Product & Channel ExposureA business model concentrated on nicotine pouches sold DTC exposes the company to category, competitive and digital customer‑acquisition risks. Structural shifts in consumer preference, retailer competition or rising ad costs could materially affect revenue growth and unit economics over multiple quarters.