Net Margin CompressionDeclining net margin and lower net income in 2025 indicate rising cost pressure or mix shifts that could persist. If structural cost inflation or reduced pricing power continues, it may constrain returns on equity and free cash flow generation over the medium term.
Volatile Cash ConversionHistorical swings in operating cash conversion point to working-capital and investment timing risks. In a downturn or with inventory/logistics stress, cash generation could deteriorate quickly, limiting flexibility and making capital allocation outcomes less predictable.
Exposure To Commodity, Freight And FX CyclesDependence on rubber, petrochemical inputs, freight and FX creates structural margin volatility. These external cost drivers can erode profitability cyclically and are only partially controllable by the company, pressuring margins and planning over multiple quarters.