Albertsons Companies (ACI) risk factors, 2025 10-K

Risks Related to Our Business and Operations

1. 01General economic conditions affecting the food and drug retail industry and various operating factors may affect our business and may adversely affect our business and operating results
2. 02Our operations are dependent upon the availability of a significant amount of energy and fuel to manufacture, store, transport and sell products
3. 03Failure to realize anticipated benefits from our productivity initiatives could adversely affect our financial performance and competitive position
4. 04We may be adversely impacted by environmental, social and governance matters, including inability to meet goals and commitments that we establish in relation to such matters

Risks Related to Our Industry

1. 05Competition in our industry is intense, and our failure to compete successfully may adversely affect our profitability and operating results
2. 06resources to grow their share of retail food sales or offset lower food margins with higher-margin non-food products. Price investment by our competitors has also adversely affected our operating margins
3. 07We may not timely identify or effectively respond to consumer trends, which could negatively affect our relationship with our customers, the demand for our products and services and our market share
4. 08Consolidation in the healthcare industry could adversely affect our financial condition and results of operations
5. 09Certain risks are inherent in providing pharmacy products and services, and our insurance may not be adequate to cover any claims against us

Risks Related to Our Supply Chain

1. 10Product and raw material supply disruptions, especially those related to fresh products, may have an adverse effect on our profitability and operating results
2. 11Severe weather, natural disasters and other climate changes may adversely affect our business
3. 12in transportation and delivery of goods, inability of our workforce to work at our facilities, reduction in customer traffic and generally a reduction in the availability of products in our stores
4. 13Threats or potential threats to food and drug safety, the occurrence of a widespread health epidemic and/or pandemic or regulatory concerns in our supply chain may adversely affect our business
5. 14We could be affected if consumers lose confidence in the food supply chain or the quality and safety of our products
6. 15Fuel prices and availability may adversely affect our results of operations
7. 16Increased commodity prices may adversely impact our profitability

Risks Relating to the Terminated Merger with Kroger

1. 17Our inability to execute on our standalone business strategies following the termination of the Merger Agreement could have a material adverse effect on our business, results of operations, and financial condition
2. 18The termination of the Merger Agreement and the related legal proceedings may cause us to incur substantial costs and could otherwise adversely affect our business, financial results and operations

Risks Related to Our Workforce

1. 19A significant majority of our employees are unionized, and our relationship with unions, including labor disputes or work stoppages, could have an adverse impact on our operations and financial results
2. 20Increased pension expenses, contributions and surcharges may have an adverse impact on our financial results
3. 21Wages continue to increase and are subject to factors outside of our control. Changes to wage regulations could have an impact on our future results of operations
4. 22Failure to attract and retain qualified associates could materially adversely affect our financial performance and our ability to successfully execute our business strategy

Legal and Regulatory Risks

1. 23Unfavorable changes in government regulation may have a material adverse effect on our business
2. 24Tax matters could adversely affect our results of operations and financial conditions
3. 25Unfavorable changes in, failure to comply with, or increased costs to comply with environmental laws and regulations could adversely affect us. The storage and sale of petroleum products could expose us to potentially significant liabilities
4. 26We are subject to, and may in the future be subject to, legal or other proceedings that could have a material adverse effect on us
5. 27The inability to insure or have adequate amounts of insurance against the risks we face may have a material adverse impact on our results of operations

Risks Related to Information Security, Cybersecurity, Data Privacy and Evolving Technologies

1. 28We may be adversely affected by risks related to our dependence on IT systems. Any future changes to or intrusion into these IT systems, even if we are compliant with industry security standards, could materially adversely affect our financial condition and operating results
2. 29Improper activities by third parties, exploitation of encryption technology, new data-hacking tools and discoveries and other events or developments may result in future intrusions into or compromise of our networks, payment card terminals or other payment systems
3. 30The loss of confidence from a data security incident involving our customers, employees or vendors could materially adversely affect our financial condition and operating results
4. 31We and our third parties may use artificial intelligence in our business, which could result in competitive and reputational harm, and legal liability, and adversely affect our results of operations

Risks Related to Our Indebtedness

1. 32Our indebtedness could adversely affect our financial condition and prevent us from fulfilling our obligations under our indebtedness
2. 33We may incur substantially more debt in the future
3. 34To service our indebtedness, we require a significant amount of cash, and our ability to generate cash depends on many factors beyond our control
4. 35Our debt instruments limit our flexibility in operating our business
5. 36Increases in interest rates, a downgrade of our credit ratings and/or instability in the credit market could negatively affect our financing costs and our ability to access capital

Risks Related to Owning Our Common Stock

1. 37The price of our common stock may be volatile or may decline regardless of our operating performance, and you may suffer a decline in value
2. 38Our largest stockholder is Cerberus, which may have conflicts of interest with other stockholders in the future
3. 39Provisions in our charter documents and Delaware law may prevent attempts by our stockholders to replace or remove our current management, even if beneficial to our stockholders
4. 40Our ability to pay dividends to our stockholders is restricted by applicable laws and regulations and requirements under certain of our securities and debt agreements, including the ABL Facility, and our existing notes