What the changes say
- Del Monte Foods acquisition adds regulatory, bankruptcy-sale, financing, integration, customer-retention and employee-retention risks.
What changed since the prior 10-K
New
- New
Summary of Principal Risk Factors
The company highlights broad risks that could cause financial-performance and stock-price volatility.
- NewRisks Related to Global Market Conditions
Changes in the United States trade policy, including the impact of baseline tariffs, may have a material adverse effect on our business and results of operations
Changing U.S. tariffs and retaliatory trade restrictions could raise costs or disrupt products sourced from Costa Rica, Guatemala, Ecuador and Mexico.
- NewRisks Related to Our Business and Operations
Our acquisition of Del Monte Foods may not be consummated and we may incur significant time and expenses to consummate this strategic acquisition
The Del Monte Foods acquisition could fail to close because of regulatory approvals, including Hart-Scott-Rodino review, or simultaneous bankruptcy-sale closings.
- NewRisks Related to Our Business and Operations
Our acquisition of Del Monte Foods may not deliver the anticipated benefits we expect
Even if completed, the Del Monte Foods acquisition may not deliver benefits because of integration, financing, systems, employee and customer-retention challenges.
- NewRegulatory Risks
potential changes, or any future changes in any of the countries in which we operate, to our business. However, such changes could adversely affect our business, financial position and results of operations
Complex, changing international tax, value-added, sales, excise, tariff and transfer-tax rules could create additional taxes, penalties and litigation costs.
- NewRisks Related to Our Information Systems
Security breaches and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer
Cyberattacks could expose employee data, trade secrets and intellectual property, triggering competitive losses, litigation or GDPR and CCPA penalties.
- NewRisks Related to Our Information Systems
Our ability to operate efficiently and remain competitive may depend in part on our ability to adapt to technological innovation in our industry
AI tools used for contaminant detection, logistics, forecasting and risk management may produce errors, increase costs or create compliance, privacy and vendor risks.
Dropped
- DroppedRisks Related to Global Market Conditions
influenced by various factors including price, product quality, brand recognition and customer loyalty, effectiveness of marketing and promotional activity, and the ability to identify and satisfy evolving consumer preferences
- DroppedRisks Related to Our Business and Operations
subsidiary. Any media coverage resulting therefrom, could create a negative public perception of our business, which in turn could have a negative impact on our products’ acceptance by consumers or customers
- DroppedRisks Related to Environmental Concerns/Agricultural Operations
and/or our costs of purchased fruit may increase. These risks can be exacerbated when a substantial portion of our production of a specific product is grown in one region, provided by a limited number of suppliers, or when it endangers one of our primary products
- DroppedRisks Related to Environmental Concerns/Agricultural Operations
Regulations concerning the use of pesticides, fertilizers and other agricultural products could adversely impact us by increasing our production costs or restricting our ability to import certain products into our selling markets
Competition in bananas, pineapples, fresh produce and fresh-cut products, including multinational, regional and local rivals.
- DroppedRisks Related to Environmental Concerns/Agricultural Operations
We may be subject to liability and/or increased costs for environmental damage from the use of herbicides, pesticides and other substances or environmental contamination of our owned or leased property
- DroppedRisks Related to Our Information Systems
We rely on information systems in managing our operations and any breaches of our information system security measures, or those third parties upon which we rely, could disrupt our internal operations and may have an adverse effect on our business
- DroppedRisks Related to Our Information Systems
litigation alleging non-compliance. In such cases, the cost to remediate any damages to our information technology systems that we may suffer in connection with a cyber-attack could be significant
Reworded
- 95% rewrittenRisks Related to Our Information Systems
Our operations and reputations could be harmed if our information technology systems fail to perform adequately
The company newly identifies legacy IT systems and hardware nearing end of support, increasing risks of cybersecurity incidents, errors and disruptions.
Was: Our operations and reputation may be impaired if our information technology systems fail to perform adequately
- 83% rewrittenRisks Related to Environmental Concerns/Agricultural Operations
Adverse weather, natural disasters and other conditions affecting the environment, including the effects of climate change, could result in substantial losses and weaken our financial condition
The climate and weather discussion now says severe conditions may occur more frequently and removes the prior $1.4 million minimum loss figure.
- 79% rewrittenRegulatory Risks
Changes in tax laws in any of the jurisdictions in which we operate or in which we establish holding companies, or adverse outcomes from tax audits could cause fluctuations in our overall tax rate and adversely impact our operating results
The provided excerpt shows no substantive visible change; it continues to focus on tax-law, tax-rate and audit-related effects.
- 78% rewrittenRisks Related to Our Business and Operations
We are dependent on our relationships with key suppliers to obtain a number of our products
One Philippine grower supplied approximately 13% of 2025 banana net sales versus 12% in 2024, and its contract expires February 28, 2026; Vietnam and Cambodia sourcing was added.
- 73% rewrittenRisks Related to Global Market Conditions
Our industry is highly competitive, which could adversely affect our profitability
The provided excerpts show the same perishability and competitive pressures, with no substantive change visible in the supplied prior-year text.
- 68% rewrittenRegulatory Risks
We are subject to regulations concerning food safety and protection of health and the environment
The discussion now specifies jurisdictions where facilities are located and products distributed, and emphasizes material compliance costs and penalties.
- 67% rewrittenRisks Related to Our Business and Operations
We may not be able to successfully consummate and manage ongoing acquisition, joint venture and business partnership activities, which could have an adverse impact on our results
The acquisition section now expressly covers the Del Monte Foods transaction and changes capital diversion to diversion of capital and management time and attention.
- 65% rewrittenRisks Related to Our Business and Operations
Adverse perception, events or rumors relating to our Del Monte® brand could have a material adverse effect on our business
The provided excerpts show the same Del Monte brand, food-safety and supplier labor-rights reputation concerns, with no substantive visible change.
- 55% rewrittenRisks Related to Global Market Conditions
We may not be able to increase prices to fully offset continued pricing pressures on various commodities, raw materials and other costs, which may impact our financial condition or results of operations
Was: We may not be able to increase prices to fully offset continued inflationary pressures on various commodities, raw materials and other costs, which may impact our financial condition or results of operations
- 50% rewrittenRisks Related to Environmental Concerns/Agricultural Operations
Costs of compliance with climate change laws could have a material adverse impact on our results of operations
Was: The effects of climate change and climate change laws could have a material adverse impact on our financial condition and results of operations
- 46% rewrittenRisks Related to Our Financing
Increases in interest rates could increase the cost of servicing our indebtedness and have an adverse effect on our results of operations and cash flows
- 41% rewrittenRegulatory Risks
The enforcement of regulations concerning the marketing and labeling of food products could adversely affect our reputation
- 41% rewrittenRisks Related to Our Business and Operations
Our strategy of diversifying our product lines, expanding into new geographic markets and increasing the value-added services that we provide to our customers may not be successful
- 40% rewrittenRisks Related to Our Corporate Structure
Our organizational documents contain certain anti-takeover provisions that could delay, deter or prevent a change in control
- 23% rewrittenRisks Related to Our Corporate Structure
Our principal shareholders are able to significantly influence all matters requiring shareholder approval
- 21% rewrittenRegulatory Risks
Environmental, social and governance matters and any related reporting obligations may impact our businesses
All 42 risk factors
Headings as the filing states them, in filing order.
Other
- 01Summary of Principal Risk FactorsNew
Risks Related to Global Market Conditions
- 02Changes in the United States trade policy, including the impact of baseline tariffs, may have a material adverse effect on our business and results of operationsNew
- 03We may not be able to increase prices to fully offset continued pricing pressures on various commodities, raw materials and other costs, which may impact our financial condition or results of operations55% rewritten
- 04Our profit margins for many of our products, including bananas, pineapples, avocados and other fresh produce, are volatile and we may not be able to increase prices to address cost increases
- 05Our industry is highly competitive, which could adversely affect our profitability73% rewritten
- 06Consolidation of retailers, wholesalers and distributors in the food industry may result in downward pressure on sales prices
- 07We are subject to material currency exchange risks because our operations involve transactions denominated in various currencies, which could negatively affect our operating results
Risks Related to Our Business and Operations
- 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
- 09Shortages of qualified labor, increases in wage and benefit costs, changes in laws and other labor regulations, and labor disruptions could impact our financial results and decrease our profitability
- 10We are dependent on our relationships with key suppliers to obtain a number of our products78% rewritten
- 11Disruption of our supply chain could adversely affect our business
- 12Our strategy of diversifying our product lines, expanding into new geographic markets and increasing the value-added services that we provide to our customers may not be successful41% rewritten
- 13Some of our products contain genetically modified organisms (“GMOs”) or are gene-edited and we may in the future need to develop and market such products based on adverse market conditions
- 14Demand for our products is subject to changing consumer preferences, and a reduction in demand for any one or more of our products could negatively impact our sales and profits
- 15Adverse perception, events or rumors relating to our Del Monte® brand could have a material adverse effect on our business65% rewritten
- 16We rely on protection of our intellectual property and proprietary rights
- 17Our acquisition of Del Monte Foods may not be consummated and we may incur significant time and expenses to consummate this strategic acquisitionNew
- 18Our acquisition of Del Monte Foods may not deliver the anticipated benefits we expectNew
- 19We may not be able to successfully consummate and manage ongoing acquisition, joint venture and business partnership activities, which could have an adverse impact on our results67% rewritten
- 20A sustained lack of profitability could cause us to incur impairment charges of our intangible and long-lived assets and/or record valuation allowances against our deferred tax assets
- 21Any failure to adequately store, maintain and deliver quality perishable foods could materially adversely affect our business, financial condition and operating results
Regulatory Risks
- 22We are subject to the risk of product contamination and product liability claims which could materially and adversely affect our results and financial condition
- 23We are subject to regulations concerning food safety and protection of health and the environment68% rewritten
- 24We are subject to legal and environmental risks arising from the transportation of our products and our commercial shipping and logistics business that could result in significant cash outlays
- 25Environmental, social and governance matters and any related reporting obligations may impact our businesses21% rewritten
- 26We are exposed to political, economic and other risks from operating a multinational business, which could have a material adverse effect on our results and financial condition
- 27The enforcement of regulations concerning the marketing and labeling of food products could adversely affect our reputation41% rewritten
- 28Changes in tax laws in any of the jurisdictions in which we operate or in which we establish holding companies, or adverse outcomes from tax audits could cause fluctuations in our overall tax rate and adversely impact our operating results79% rewritten
- 29potential changes, or any future changes in any of the countries in which we operate, to our business. However, such changes could adversely affect our business, financial position and results of operationsNew
Risks Related to Environmental Concerns/Agricultural Operations
- 30Our agricultural plantings are potentially subject to damage from crop disease or insect infestations, which could adversely impact our operating results and financial condition
- 31Adverse weather, natural disasters and other conditions affecting the environment, including the effects of climate change, could result in substantial losses and weaken our financial condition83% rewritten
- 32Water scarcity in our growing regions could adversely affect our agricultural operations and our profitability
- 33Costs of compliance with climate change laws could have a material adverse impact on our results of operations50% rewritten
Risks Related to Our Information Systems
- 34Our operations and reputations could be harmed if our information technology systems fail to perform adequately95% rewritten
- 35Security breaches and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to sufferNew
- 36Our ability to operate efficiently and remain competitive may depend in part on our ability to adapt to technological innovation in our industryNew
Risks Related to Our Financing
- 37Our indebtedness could limit our financial and operating flexibility and subject us to other risks
- 38Increases in interest rates could increase the cost of servicing our indebtedness and have an adverse effect on our results of operations and cash flows46% rewritten
Risks Related to Our Corporate Structure
- 39Our principal shareholders are able to significantly influence all matters requiring shareholder approval23% rewritten
- 40Our organizational documents contain certain anti-takeover provisions that could delay, deter or prevent a change in control40% rewritten
- 41Our shareholders have limited rights under Cayman Islands law
General Risks
- 42Our success depends on the services of our senior executives, the loss of any one of which could disrupt our operations
Other Del Monte 10-Ks
- FY2024 10-K risk factors42 risks
Del Monte Corp's risk profile is dominated by commodity price volatility, supply chain disruptions, customer concentration, and climate/agricultural vulnerabilities.
Filed Feb 24, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.