Church & Dwight (CHD) risk factors, FY2025 10-K

Business and Operational Risks

1. 01We face intense competition in our markets25% rewritten
2. 02A continued change in the retail environment and changing consumer preferences could cause our sales to decline
3. 03Volatility and increases in the price of raw and packaging materials or energy costs could erode our profit margins
4. 04Loss of any of our principal customers could significantly decrease our sales and profitability
5. 05Market category declines and changes to our product and geographic mix may impact the achievement of our sales growth targets, planned pricing and financial results42% rewritten
6. 06Decreases in demand for our products would decrease our sales and profitability47% rewritten
7. 07We rely on the policies of our key retail customers
8. 08Protracted unfavorable market conditions have caused many of our customers to more critically analyze the number of brands they sell, and reduce or discontinue certain of our product lines, particularly those products that were not number one or two in their category
9. 09We may be unable to successfully identify, finance, complete and integrate future strategic acquisitions, or successfully complete or realize the anticipated benefits of strategic divestituresNew
10. 10New products and product line extensions may not gain widespread customer acceptance, may be otherwise discontinued, or cause sales of existing products to decline
11. 11We are subject to cost overruns and delays, regulatory requirements, and miscalculations in capacity needs with respect to our expansion projects and our manufacturing facilities, as well as disruptions to our manufacturing facilities and those of our contract manufacturers and other suppliers
12. 12We rely on a number of contract manufacturers and suppliers, including sole source contract manufacturers and suppliers for certain products, and supply chain issues may result in product shortages or disruptions to the Company’s business
13. 13Reduced availability of transportation or disruptions in our transportation network could adversely affect us
14. 14Investments 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 benefitsNew
15. 15Damage to the reputation of one or more of our leading brands could adversely affect us50% rewritten
16. 16Additionally, claims made in our marketing campaigns may become subject to litigation alleging false advertising and could cause us to alter our marketing plans and may affect sales or result in the imposition of significant damages against us
17. 17We are subject to risks related to our expansion and international operations that could adversely affect our results of operations
18. 18Impairment of our goodwill and other long-lived intangible and tangible assets may result in a reduction in net income59% rewritten

Regulatory and Litigation Risks

1. 19We may be subject to product liability claims, withdrawals or recalls or other legal proceedings and from time to time we are involved in litigation, arbitration or regulatory matters where the outcome is uncertain and which could entail significant expense
2. 20Litigation, arbitration or regulatory matters where the outcome is uncertain could entail significant expense22% rewritten
3. 21Environmental matters create potential liability risks43% rewritten
4. 22Any failure to achieve our sustainability goals or to effectively respond to new or current legal, regulatory or stakeholder sustainability requirements could adversely affect our business and reputation32% rewritten
5. 23Current and future laws and regulations in the countries in which we and our suppliers operate could expose us to increased costs and other adverse consequences
6. 24We are subject to increasingly stringent privacy and data security regulation75% rewritten
7. 25Changes in tax laws and regulations or in our operations may impact our effective tax rate and may adversely affect our business, financial condition and operating results29% rewritten
8. 26Resolutions of tax disputes may adversely affect our earnings and cash flow
9. 27Our amended and restated bylaws include an exclusive forum provision

Financial Risks

1. 28We have substantial indebtedness and we may incur substantially more debt in the future23% rewritten
2. 29Our business is exposed to domestic and foreign currency fluctuations
3. 30The estimates and assumptions on which our financial projections are based may prove to be inaccurate, which may cause our actual results to materially differ from such projections, which may adversely affect expectations regarding our future profitability and cash flows, which may impact our stock price

General Risks

1. 31Our operating results have been, and could be in the future, adversely affected by natural disasters, public health crises, political crises, or other catastrophic events, or unfavorable worldwide, regional and local economic and financial market conditions
2. 32We may not be able to attract, retain and develop key personnel46% rewritten
3. 33Our continued growth and expansion, reliance on third-party service providers and implementation of new accounting standards could adversely affect our internal control over financial reporting
4. 34Our business could be negatively impacted as a result of stockholder activism, an unsolicited takeover proposal or a proxy contest or short sellers