Inconsistent ProfitabilityOperating profits have not yet been consistently achieved despite improving EBITDA, meaning core earnings remain negative. This limits retained earnings accumulation, constrains reinvestment capacity over the medium term, and keeps ROE negative until sustained net profits arrive.
Historic Cash-flow VolatilityAlthough current TTM cash flow is positive, prior periods showed material variability and negative flows. Such volatility raises execution risk for planned expansion, complicates multi-period planning, and means recent cash generation may need further confirmation to be deemed durable.
U.S. Distributor/channel VariabilityReliance on third-party distributors and wholesale club timing creates durable execution and forecasting risk in the U.S. channel. Inventory timing can materially swing reported shipments and weaken predictability of growth, hampering steady retail penetration and margin management.