Kraft Heinz (KHC) risk factors, FY2024 10-K

Industry Risks

1. 01We operate in a highly competitive industry
2. 02Our success depends on our ability to correctly predict, identify, and interpret changes in consumer preferences and demand, to offer new products to meet those changes, and to respond to competitive innovation
3. 03Changes in the retail landscape or the loss of key retail customers could adversely affect our financial performance
4. 04Changes in our relationships with significant customers or suppliers, or in other business relationships, could adversely impact us
5. 05We have many iconic brands with long-standing consumer recognition across the globe. Our success depends on our ability to maintain brand image for our existing products, extend our brands to new platforms, and expand our brand image with new product offerings
6. 06We must leverage our brand value to compete against private label products
7. 07We may be unable to drive revenue growth in our key product categories or platforms, increase our market share, or add products that are in faster-growing and more profitable categories
8. 08Product recalls or other product liability claims could materially and adversely affect us
9. 09Climate change and legal or regulatory responses may have a long-term adverse impact on our business and results of operations

Business Risks

1. 10We may not successfully identify, complete, or realize the benefits from strategic acquisitions, divestitures, alliances, joint ventures, or investments
2. 11We may not be able to successfully execute our strategic initiatives
3. 12Our international operations subject us to additional risks and costs and may cause our profitability to decline
4. 13Our intellectual property rights are valuable, and any inability to protect them could reduce the value of our products and brands
5. 14We may be unable to realize the anticipated benefits from prior or future streamlining actions to reduce fixed costs, simplify or improve processes, or improve our competitiveness
6. 15Berkshire Hathaway Inc. has the ability to exert influence over us and significant influence over matters requiring stockholder approval

Financial Risks

1. 16Our level of indebtedness, as well as our ability to comply with covenants under our debt instruments, could adversely affect our business and financial condition
2. 17Additional impairments of the carrying amounts of goodwill or other indefinite-lived intangible assets could negatively affect our financial condition and results of operations
3. 18Our net sales and net income may be exposed to foreign exchange rate fluctuations
4. 19Commodity, energy, and other input prices are volatile and could negatively affect our consolidated operating results
5. 20Volatility in the market value of all or a portion of the derivatives we use to manage exposures to fluctuations in commodity prices may cause volatility in our gross profit and net income

Regulatory Risks

1. 21Our compliance with laws and regulations, and related legal claims or regulatory enforcement actions, could expose us to significant liabilities and damage our reputation
2. 22in, us being subject to regulations, fines, lawsuits, or taxes, or may cause us to change the way in which we operate which could adversely impact our profitability, financial condition, or operating results
3. 23If we fail to maintain an effective system of internal controls, we may not be able to accurately and timely report our financial results, which could negatively impact our business, investor confidence, and the price of our common stock
4. 24A downgrade in our credit rating could adversely impact interest costs or access to future borrowings
5. 25Sales of our common stock in the public market could cause volatility in the price of our common stock or cause the share price to fall
6. 26Our share repurchase program may not be fully consummated and the anticipated enhanced long-term stockholder value may not be realized, and share repurchases could increase the volatility of the price of our stock
7. 27Our ability to pay regular dividends to our stockholders and the amounts of any such dividends are subject to the discretion of the Board and may be limited by our financial condition, debt agreements, or limitations under Delaware law
8. 28Disruptions in the global economy caused by geopolitical conflicts could adversely affect our business, financial condition, and results of operations
9. 29Unanticipated business disruptions and natural events in the locations in which we or our customers, suppliers, distributors, or regulators operate could adversely affect our ability to provide products to our customers or our results of operations
10. 30Our performance may be adversely affected by economic and political conditions in the United States and in various other nations where we do business
11. 31We rely on our management team and other key personnel and may be unable to hire or retain key personnel or a highly skilled and diverse global workforce
12. 32We are significantly dependent on information technology, and we may be unable to protect our information systems against service interruption, misappropriation of data, or breaches of security
13. 33Our results could be adversely impacted as a result of increased pension, labor, and people-related expenses
14. 34Changes in tax laws and interpretations could adversely affect our business
15. 35Volatility of capital markets or macroeconomic factors could adversely affect our business