Darling Ingredients (DAR) risk factors, FY2024 10-K

Risks Related to the Company

1. 01The prices of many of our products are subject to significant volatility
2. 02Our business is dependent on the procurement of raw materials, which is the most competitive aspect of our business
3. 03The DGD Joint Venture subjects us to a number of risks
4. 04Our renewable energy businesses may be affected by energy policies around the world
5. 05We are highly dependent on natural gas, diesel fuel and electricity, the prices of which can be volatile, and such dependency could materially adversely affect our business
6. 06A significant percentage of our revenue is attributable to a limited number of suppliers and customers
7. 07Certain of our operating facilities are highly dependent upon a single or a few suppliers
8. 08We face risks associated with our international activities, which could negatively affect our sales to customers in foreign countries and our operations and assets in such countries
9. 09Seasonal factors and weather, including the physical impacts of climate changes, can impact the availability, quality and volume of raw materials that we process and negatively affect our operations
10. 10If we or our customers are the subject of product liability or other claims or product recalls we may incur significant and unexpected costs and our business reputation could be adversely affected
11. 11In certain markets we are highly dependent upon a single operating facility and various events beyond our control could cause an interruption in the operation of our facilities, which could adversely affect our business in those markets
12. 12We may incur losses and additional costs as a result of our hedging transactions
13. 13Media campaigns related to feed and food ingredient production or fuel production present reputational and other risks
14. 14An impairment in the carrying value of our goodwill or other intangible assets may have a material adverse effect on our results of operations

Risks Related to Legal and Regulatory Compliance

1. 15Our operations are subject to various laws, rules and regulations including those relating to the protection of the environment and to health and safety, and we could incur significant costs to comply with these requirements or be subject to sanctions or held liable for damages, including environmental damages

Risks Relating to Global Disease Outbreaks or Pandemics

1. 16Our business may be negatively impacted by the occurrence of any disease correctly or incorrectly linked to animals
2. 17Our business may be affected by the impact of animal related disease, such as BSE, and by other food safety issues
3. 18The actual or perceived effects of a disease outbreak, epidemic, pandemic or similar widespread public health concern, such as COVID-19, could negatively affect our operations, liquidity, financial condition and results of operations

Risks Related to our Labor Force

1. 19We may be subject to work stoppages at our operating facilities, which could cause interruptions in the manufacturing or distribution of our products
2. 20Certain U.S. multiemployer defined benefit pension plans to which we contribute are underfunded and these plans may require minimum funding contributions or we may be subject to liabilities due to a termination of, or our withdrawal from, such plans
3. 21The proposed Employment Rights Bill is set to overhaul employment law in the UK, with a number of employee friendly proposals which could have an adverse effect on our business due to increased costs associated with being an employer

Risks Related to our Indebtedness

1. 22Our substantial level of indebtedness could adversely affect our financial condition
2. 23Despite our existing level of indebtedness, we and our subsidiaries may still be able to incur substantially more indebtedness, which could further exacerbate the risks to our financial condition described above
3. 24We may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful
4. 25Our ability to repay our indebtedness depends in part on the performance of our subsidiaries, including our non-guarantor subsidiaries, and their ability to make payments

Risks Related to our Common Stock

1. 26The market price of our common stock has been and may continue to be volatile, which could cause the value of your investment to decline
2. 27Our ability to pay any dividends on our common stock may be limited and, consequently, your ability to achieve a return on your investment will depend on appreciation in the price of our common stock
3. 28Future sales of our common stock or the issuance of other equity may adversely affect the market price of our common stock
4. 29Our common stock is an equity security and is subordinate to our existing and future indebtedness
5. 30The issuance of shares of preferred stock could adversely affect holders of common stock, which may negatively impact your investment
6. 31We may incur material costs and liabilities in complying with government regulations
7. 32Downturns and volatility in global economies and commodity and credit markets could materially adversely affect our business, results of operations and financial condition
8. 33We may not successfully identify and complete acquisitions on favorable terms or achieve anticipated synergies relating to any acquisitions, and such acquisitions could result in unknown liabilities, unforeseen operating difficulties and expenditures and require significant management resources
9. 34Our business may be adversely impacted by fluctuations in foreign currency exchange rates, which could affect our ability to comply with our financial covenants
10. 35Large capital projects can take many years to complete, and market conditions could deteriorate over time, negatively impacting project returns
11. 36Changes in consumer preference could negatively impact our business
12. 37If we experience difficulties or a significant disruption in our information systems or if we fail to implement new systems and software successfully, our business could be materially adversely affected
13. 38Increased information technology security threats and more sophisticated computer crime pose a risk to our systems, networks, products and services, while data privacy and cybersecurity laws continue to proliferate presenting heightened regulatory risk
14. 39Artificial intelligence could subject the Company to loss through various internal and external risks
15. 40Our success is dependent on our key personnel
16. 41We could have a material weakness in our internal control over financial reporting that would require remediation
17. 42Changes in our tax rates or exposure to additional income tax liabilities could impact our profitability
18. 43Litigation or regulatory proceedings may materially adversely affect our business, results of operations and financial condition
19. 44Our European pension funds may require minimum funding contributions
20. 45We may divest of certain of our brands or businesses from time to time, which could adversely affect us
21. 46Terrorist attacks or acts of war may cause damage or disruption to us and our employees, facilities, information systems, security systems, suppliers and customers, which could materially and adversely affect our net sales, costs and expenses and financial condition
22. 47We may be unable to protect our intellectual property rights
23. 48Our products, processes, methods, and equipment may infringe upon the intellectual property rights of others, which may cause us to incur unexpected costs or prevent us from selling our products
24. 49The healthcare reform legislation in the United States and its implementing regulations could impact the healthcare benefits we are required to provide our employees in the United States and cause our compensation costs to increase, potentially reducing our net income and adversely affecting our cash flows
25. 50We may incur significant charges and experience disruptions or losses of customer and/or supplier relationships in the event we close or divest all or part of a manufacturing plant or facility
26. 51We may not be able to achieve our climate, sustainability or other such goals, targets or objectives
27. 52The United Kingdom's withdrawal from the EU could have an adverse effect on our business, investments and future operations in Europe