Lamb Weston Holdings (LW) risk factors, FY2025 10-K

Business and Operating Risks

1. 01We may not be able to offset cost increases on inputs necessary for the production and distribution of our products, such as labor, raw materials, energy, fuel, and packaging materials
2. 02Disruption to our supply chain could adversely affect our business
3. 03Labor shortages or stoppages, an inability to attract and retain key personnel, increased turnover or increases in labor costs could adversely affect our business, financial condition, and results of operations
4. 04Our business, financial condition, and results of operations could be adversely affected by the political and economic conditions of the countries in which we conduct business and other factors related to our international operations, including foreign currency risks and trade barriers
5. 05Changes in our relationships with significant customers could adversely affect us
6. 06Changes in our relationships with our growers could adversely affect us
7. 07Disruption of our access to export mechanisms could have an adverse impact on our business, financial condition, and results of operations
8. 08Our operations are dependent on a wide array of third parties
9. 09Damage to our reputation as a trusted partner to customers and good corporate citizen could have a material adverse effect on our business, financial condition, and results of operations
10. 10We may not realize the anticipated cost savings and/or operating efficiencies associated with strategic initiatives, including our FY25 Restructuring Plan and recently announced Cost Savings Program
11. 11If we are unable to execute on large capital projects or complete or realize the projected benefits of acquisitions, divestitures and other strategic transactions, our business, financial condition, and results of operations could be materially and adversely affected

Industry Risks

1. 12Our business is affected by potato crop performance
2. 13The sophistication and buying power of some of our customers could have a negative impact on profits
3. 14Increased competition may result in reduced sales or profits
4. 15An imbalance of industry supply and demand may result in reduced sales or profits
5. 16We must identify changing consumer preferences and consumption trends and develop and offer food products to our customers that help meet those preferences and trends

Financial and Economic Risks

1. 17Our substantial debt may limit cash flow available to invest in the ongoing needs of our business and could prevent us from fulfilling our debt obligations
2. 18The agreements governing our debt contain various covenants that impose restrictions on us that may affect our ability to operate our business
3. 19We face risks related to financial and credit market disruptions and other economic conditions
4. 20Impairment in the carrying value of goodwill, other intangible assets, or long-lived assets could result in the incurrence of impairment charges and negatively impact our financial results and net worth

Cybersecurity and Technology Risks

1. 21Problems with the transition, design, or implementation of our new ERP system have and could further interfere with our business and operations and adversely affect our financial condition
2. 22We 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

Legal and Regulatory Risks

1. 23We may be subject to product liability claims and product recalls or withdrawals, which could negatively impact our relationships with customers and harm our business
2. 24business could also be adversely affected if consumers lose confidence in the food safety system generally, even if such loss of confidence is unrelated to products in our portfolio
3. 25Regulations imposed by the FDA or EFSA around acrylamide formation in potato products could adversely affect us
4. 26If we fail to comply with the many laws and regulations applicable to our business, we may face lawsuits or incur significant fines and penalties
5. 27Climate change, or legal, regulatory, or market measures to address climate change, may negatively affect our business and operations
6. 28Our intellectual property rights are valuable, and any inability to protect and/or enforce them could reduce the value of our products and brands