Mission Produce (AVO) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01Reliance on primarily one main product subjects us to a concentrated set of risks for which there is limited ability to mitigate
2. 02Our ability to generate revenues is limited by the supply of fruit and our ability to purchase or grow additional fruit
3. 03Our profitability is sensitive to fluctuations in market prices of our products which we do not control
4. 04We are subject to increasing competition that may adversely affect our operating results
5. 05We are subject to the risks of doing business internationally and our current international operations are subject to a number of inherent risks
6. 06Inflationary pressures and increases in costs of commodities or other products we use in our business, such as fuel, packing, and paper, could adversely affect our operating results
7. 07We may fail to develop an effective customer strategy for our existing customers, or we may fail to establish and grow emerging markets and geographic channels, which may result in reduced profitability and negatively impact financial results
8. 08The loss of one or more of our largest customers, or a reduction in the level of purchases made by these customers, could negatively impact our sales and profits
9. 09Mexican economic, political and societal conditions may have an adverse impact on our business
10. 10Peruvian economic and political conditions may have an adverse impact on our business
11. 11Our performance may be impacted by general economic conditions or an economic downturn
12. 12Failure to optimize our supply chain or disruption of our supply chain could have an adverse effect on our business, financial condition and results of operations
13. 13Our ability to serve our customers is a function of reliable and cost-effective transportation. Disruption of the supply of these services and/or significant increases in the cost of these services could impact our operating income
14. 14We depend on our key personnel and an effective organizational structure to run our business and if we fail to attract and retain key personnel, or fail to optimize our organization structure, we may not be able to implement our business strategy or operate our business effectively
15. 15Growers from whom we source a significant portion of our supply from, and we ourselves as growers, are subject to the risks that are inherent in farming, including those related to climate change
16. 16Government regulations regarding farming and the marketing of agricultural products or third-party advocacy groups and customers can impose additional requirements or prohibitions on farming or growing practices that impose additional costs on, or make it more difficult to conduct, our business
17. 17Due to the seasonality of the business, our revenue and operating results may vary from quarter to quarter and year to year
18. 18System security risks, data protection breaches, cyber-attacks and systems integration issues could disrupt our internal operations or services provided to customers, and any such disruption could reduce our expected revenue, increase our expenses, damage our reputation and adversely affect our stock price
19. 19We are subject to stringent privacy laws, information security laws, regulations, policies and contractual obligations related to data privacy and security and such laws, regulations, policies and contractual obligations affect our business
20. 20Food safety events, including instances of food-borne illnesses, could create negative publicity for our customers and adversely affect sales and operating results
21. 21A recall of our products could have a material adverse effect on our business. In addition, we may be subject to significant liability claims should the consumption of any of our products cause injury, illness or death
22. 22We are subject to possible changing United States Department of Agriculture and Food and Drug Administration regulations that govern the importation of our products into the United States
23. 23Changes to U.S. trade policy, tariff and import/export regulations may adversely affect our operating results
24. 24We are subject to health and safety laws, which restrict our operations and increase our operating costs
25. 25Compliance with environmental laws and regulations, including laws pertaining to the use of herbicides, fertilizers and pesticides or climate change, or liabilities thereunder, could result in significant costs that adversely impact our business, results of operations, financial position, cash flows and reputation
26. 26The acquisition of other businesses could pose risks to our financial condition and results
27. 27We depend on our infrastructure to have sufficient capacity to handle our business needs
28. 28and operate such facilities, including preservation and maintenance of machinery and management and resource allocation related to labor, in an effective and efficient manner could cause operational and financial losses
29. 29Adverse results in material litigation or governmental inquiries and actions could have an adverse financial impact and an adverse impact on our business and financial condition
30. 30We are subject to extensive government regulation in the jurisdictions in which we do business which can negatively impact our financial condition, results of operation, and cash flows
31. 31Our business depends on a strong and trusted brand, and any failure to maintain, protect, and enhance our brand would have an adverse impact on our business
32. 32We could be subject to changes in tax rates, the adoption of new U.S. or international tax legislation or exposure to additional tax liabilities
33. 33Global conflicts, including those between Russia and Ukraine and the war in the Middle East may adversely affect our business and results of operations
34. 34Our business is heavily dependent on certain factors and risks such as those we have described in Item 1A that may limit our ability to accurately forecast our future performance and increase the risk of an investment in our common stock

Risks Related to Our Common Stock

1. 35An active, liquid and orderly market for our common stock may not be maintained
2. 36The trading price of the shares of our common stock has been, and is likely to continue to be, highly volatile, and purchasers of our common stock could incur substantial losses
3. 37Our executive officers and directors, if they choose to act together, have the ability to control or significantly influence all matters submitted to stockholders for approval. Furthermore, many of our current directors were appointed by our principal stockholders
4. 38Because we may not pay any cash dividends on our capital stock in the foreseeable future, capital appreciation, if any, may be your sole source of gain
5. 39We incur significant costs as a result of operating as a public company, and our management will be required to devote substantial time to new compliance initiatives
6. 40If securities or industry analysts do not publish research or reports or publish unfavorable research or reports about our business, our stock price and trading volume could decline
7. 41If we fail to maintain proper and effective internal control over financial reporting, our ability to produce accurate and timely financial statements could be impaired, investors may lose confidence in our financial reporting and the trading price of our common stock may decline
8. 42Provisions in our charter documents and under Delaware law could discourage a takeover that stockholders may consider favorable and may lead to entrenchment of management