Weak Cash ConversionA TTM reversal to slightly negative free cash flow and weaker operating cash flow signals working-capital or reinvestment pressure. Persistently poor cash conversion undermines self-funding ability, limits capital allocation flexibility and raises reliance on external financing.
Modest, Volatile MarginsWhile margins have improved, net margins remain thin and historically volatile. In low-margin packaged foods, modest net margins leave limited buffer versus cost inflation or volume weakness, increasing earnings and cash-flow sensitivity to adverse industry shocks.
Balance-sheet Sensitivity From Prior LeverageThe balance sheet improvement is recent; a history of higher leverage means financial comfort could reverse quickly if margins slip. Small firms in packaged foods can see leverage creep back from working-capital needs or weaker profitability, raising medium-term risk.