Volatile Cash GenerationMaterial swings in operating cash flow and a negative free cash flow year in 2025 show cash conversion is timing-sensitive and inconsistent. This volatility, driven by working-capital and capex timing, can constrain reliable funding for expansion, dividends, or unexpected costs over the coming months.
Thin Net MarginsAbsolute net margins remain low for the business, leaving limited buffer against cost inflation, supplier pressure, or competitive price cuts. Even with improving earnings, thin margins reduce flexibility to absorb shocks and limit free cash available for growth or balance-sheet strengthening.
Rising Asset Base Risks Return DilutionA notable increase in total assets without guaranteed proportional profit growth risks diluting returns on assets and equity. If new stores or asset investments fail to generate adequate incremental profits, medium-term ROE/ROA could decline, pressuring long-term efficiency metrics.