Conagra Brands (CAG) risk factors, FY2025 10-K

Market Risks

1. 01Deterioration of general economic conditions, an economic recession, periods of inflation, or economic uncertainty may affect consumers resulting in reductions in consumer spending and have in the past harmed and could continue to harm our business and results of operations
2. 02Inflation, increased interest rates, and other economic conditions including potential recession and credit market disruptions, could negatively impact our business
3. 03Our business, financial condition, and results of operations have in the past been and could continue to be adversely affected by disruptions in the global economy caused by geopolitical conflicts
4. 04We are subject to increases in the price of raw materials, labor, manufacturing, distribution, and other inputs necessary for the production and distribution of our products, and we may not be able to fully offset this input cost inflation on a timely basis or at all
5. 05Increases in commodity costs have in the past and may continue to have a negative impact on profits
6. 06Volatility in the market value of derivatives we use to manage exposures to fluctuations in commodity prices will cause volatility in our gross margins and net earnings
7. 07Supply chain disruptions have in the past and could continue to negatively impact our profitability
8. 08Investments in our facilities and operations, including investments in new facilities, equipment, technologies and digital transformation, may result in periods of decreased production or increased costs and such investments may not achieve the intended financial benefits
9. 09We have in the past been and may in the future be subject to product recalls, product liability and labeling claims, and changing legal or regulatory requirements, any of which could negatively impact our profitability
10. 10Any damage to our reputation could have a material adverse effect on our business, financial condition, and results of operations
11. 11Due to the seasonality of the business, our revenue and operating results may vary from quarter to quarter
12. 12Our existing and future debt may limit cash flow available to invest in the ongoing needs of our business and could prevent us from fulfilling our debt obligations, financing at attractive borrowing costs, or returning cash to stockholders
13. 13We rely on cash from our subsidiaries to meet our cash flow needs and service our debt
14. 14Increased competition may result in reduced sales or profits
15. 15If we do not achieve the appropriate cost structure in the highly competitive food industry, our profitability could decrease
16. 16We must identify changing consumer preferences and develop and offer food products and packaging to meet their preferences
17. 17Changes in our relationships with significant customers, including our largest customer, could adversely affect us
18. 18The sophistication and buying power of our customers could have a negative impact on profits
19. 19Disruption of our supply chain has had and could continue to have an adverse impact on our business, financial condition, and results of operations
20. 20Dependency on contract manufacturing arrangements could impact our sales volume and adversely affect our results of operations
21. 21As we outsource certain functions, we become more dependent on the third parties performing those functions
22. 22Our operations are dependent on a wide array of third parties
23. 23We may be negatively impacted by cybersecurity incidents involving third parties in our supply chain

Legal, Regulatory, and Environmental Risks

1. 24If we fail to comply with the many laws applicable to our business, we may face lawsuits or incur significant fines and penalties. In addition, changes in such laws may lead to increased costs
2. 25In addition, changes in applicable laws and regulations, including changes in taxation requirements and new or increased tariffs on products imported from certain countries, may lead to increased costs and could negatively affect our business, financial condition, and results of operations
3. 26Climate change, or legal, regulatory, or market measures to address climate change, may negatively affect our business and operations
4. 27from ingredients or activities that are considered to have a higher impact on climate change. Such changes to methodologies or lack of progress (whether actual or perceived) could adversely affect our business, operations, and reputation, and increase risk of litigation

Cybersecurity and Information Technology Risks

1. 28Our business operations could be disrupted if our information technology systems fail to perform adequately
2. 29We are exposed to cybersecurity risk through our information systems and our use of third-party information systems
3. 30We are subject to a variety of privacy and data protection laws and regulations
4. 31We rely on our management team and other key personnel
5. 32Our results could be adversely impacted as a result of increased pension, labor, and people-related expenses
6. 33Impairment in the carrying value of goodwill or other intangibles could result in the incurrence of impairment charges and negatively impact our net worth
7. 34We may not repurchase the full share repurchase value currently authorized

Strategic Transactions Risks

1. 35If we are unable to successfully identify, complete or realize the benefits from strategic acquisitions, divestitures, joint ventures or investments, our financial results could be materially and adversely affected
2. 36From time to time, we evaluate acquisition candidates that may strategically fit our business objectives. If we are unable to complete acquisitions or successfully integrate and develop acquired businesses, our financial results could be materially and adversely affected
3. 37Our acquisition, divestiture, joint venture and investment activities may present financial, managerial, and operational risks
4. 38Our intellectual property rights are valuable, and any inability to protect them could have an adverse impact on our business, financial condition, and results of operations