Flowers Foods (FLO) risk factors, FY2024 10-K

Operational Risks

1. 01Economic conditions may negatively impact demand for our products, which could adversely impact our sales and operating profit
2. 02A disruption or change in the operation of our DSD distribution system could materially and/or negatively affect our results of operations, financial condition and cash flows
3. 03We may not be able to attract or retain the highly skilled people we need for our business
4. 04Labor shortages and increased turnover or increases in employee and employee-related costs could have adverse effects on our profitability
5. 05The costs of maintaining and enhancing the value and awareness of our brands are increasing, which could have an adverse impact on our revenues and profitability
6. 06Our inability to execute our business strategy could adversely affect our business
7. 07We may be adversely impacted by the failure to successfully realize the expected benefits of acquisitions, divestitures or joint ventures
8. 08expectations about the performance of acquired trademarks and brands and the fair value of such trademarks and brands
9. 09Disruption in our supply chain or distribution capabilities from political instability, armed hostilities, incidents of terrorism, natural disasters, weather, inferior product or ingredient supply, or labor strikes could have an adverse effect on our business, financial condition and results of operations
10. 10The third-party vendor management processes may not be appropriately designed to reduce risks related to the delivery of goods, supplies and services

Technology Risks

1. 11We may be adversely impacted if our IT systems fail to perform adequately, including with respect to cybersecurity issues
2. 12We may experience difficulties in deploying the upgrade of our ERP system
3. 13We use, and may continue to expand our use of, AI in our business, and challenges with properly managing its use could result in reputational harm, competitive harm, and legal liability, and adversely affect our business operations

Industry Risks

1. 14Increases in costs and/or shortages of raw materials, fuels and utilities could adversely impact our profitability
2. 15Competition could adversely impact revenues and profitability
3. 16Product removals, damaged product or safety concerns could adversely impact our results of operations
4. 17Consolidation in the retail and foodservice industries could adversely affect our sales and profitability
5. 18Inability to anticipate or respond to changes in consumer preferences may result in decreased demand for our products, which could have an adverse impact on our future growth and operating results
6. 19We rely on several large customers for a significant portion of sales and the loss of one of our large customers or their decision to give higher priority to other brands could adversely affect our business, financial condition or results of operations
7. 20Our large customers may impose requirements on us that may adversely affect our results of operations

Legal and Regulatory Risks

1. 21Government regulation, including labeling or warning requirements, could adversely impact our results of operations and financial condition
2. 22Climate change, or legal, regulatory, or market measures to address climate change, may negatively affect our business and operations
3. 23We are subject to increasing legal complexity and could be party to litigation that may adversely affect our business
4. 24The market price for our common stock following the closing of the Simple Mills Acquisition may be affected by factors different from those that historically have affected or currently affect our common stock
5. 25We may not consummate the Simple Mills Acquisition on the terms currently contemplated or at all
6. 26Failure to complete the Simple Mills Acquisition could negatively impact our stock price and have a material adverse effect on our results of operations, cash flows and financial position
7. 27Our business relationships may be subject to disruption due to uncertainty associated with the Simple Mills Acquisition, which could have a material adverse effect on the results of operations, cash flows and financial position of us pending and following the closing of the Simple Mills Acquisition
8. 28President and Chief Operating Officer
9. 29Chief Human Resources Officer
10. 30Chief Supply Chain Officer
11. 31Chief Strategic Projects Officer
12. 32Chief Information Officer