Mccormick & (MKC) risk factors, 2025 10-K

Risks Related to Our Company, Business and Operations

1. 01Deterioration of global economic conditions, an economic recession or slow growth, periods of inflation, or economic uncertainty in our key markets may adversely affect customer and consumer spending as well as demand for our products
2. 02We have many iconic brands with long-standing consumer recognition. Our success depends on our ability to maintain our brand image for our existing products, extend our brands to new platforms, and expand our brand image with new product offerings
3. 03Customer consolidation, consumer behaviors, and competitive, economic and other pressures facing our customers, may impact our financial condition or results of operations
4. 04The inability to maintain mutually beneficial relationships with large customers could adversely affect our business, financial condition and results of operations
5. 05Issues regarding procurement of raw materials may negatively impact us
6. 06Disruption of our supply chain could adversely affect our business
7. 07Our results of operations can be adversely affected by labor shortages, turnover and labor cost increases or any failure to effectively manage changes in our workforce
8. 08We may not be able to increase prices to fully offset inflationary pressures on costs, such as raw and packaging materials, labor and distribution costs, which may impact our financial condition or results of operations
9. 09Our profitability may suffer as a result of competition in our markets
10. 10Ongoing geopolitical conflicts and the related implications may negatively impact our operations
11. 11Our operations may be impaired as a result of disasters, business interruptions or similar events
12. 12We may not be able to successfully consummate and manage ongoing acquisition, joint venture and divestiture activities which could have an impact on our results
13. 13An impairment of the carrying value of goodwill or other indefinite-lived intangible assets could adversely affect our results
14. 14Streamlining actions to reduce fixed costs, simplify or improve processes, and improve our competitiveness may have a negative effect on employee relations
15. 15If we are unable to fully realize the benefits from our CCI program or streamlining actions to reduce fixed costs, simplify or improve our competitiveness, our financial results could be negatively affected
16. 16Fluctuations in foreign currency markets may negatively impact us
17. 17We face risks associated with certain pension assets and obligations
18. 18Climate change, or legal, regulatory or market measures to address climate change, may negatively affect our business, financial condition and results of operations
19. 19perceived to have failed or been delayed in achieving, or improperly report our progress toward achieving these goals and commitments, it could negatively affect consumer or customer preference for our products or investor confidence in our stock, as well as expose us to enforcement actions and litigation
20. 20ESG issues, including those related to climate change and sustainability, may have an adverse effect on our business, financial condition and results of operations and damage our reputation

Risks Relating to Credit and Capital Markets, Our Credit Rating, Borrowings and Dividends

1. 21Increases in interest rates or changes in our credit ratings may negatively impact us
2. 22Our credit ratings impact the cost and availability of future borrowings and, accordingly, our cost of capital
3. 23We may incur additional indebtedness to finance our acquisitions that may limit our ability to, among other matters, issue additional indebtedness, meet our debt service requirements, react to rising interest rates, comply with certain covenants and compete with less highly leveraged competitors
4. 24The deterioration of credit and capital markets may adversely affect our access to sources of funding
5. 25Uncertain global economic conditions expose us to credit risks from customers and counterparties
6. 26The declaration, payment and amount of dividends is made at the discretion of our board of directors and depends on a number of factors

Risks Related to Intellectual Property, Information Technology, and Cyber-Security

1. 27Our intellectual property rights, and those of our customers, could be infringed, challenged or impaired, and reduce the value of our products and brands or our business with customers
2. 28Our operations and reputation may be impaired if our information technology systems fail to perform adequately or if we are the subject of a data breach or cyber-attack
3. 29If we are not able to successfully implement our business transformation initiative or utilize information technology systems and networks effectively, our ability to conduct our business may be negatively impacted

Risks Related to Our Global Business, Litigation, Laws and Regulations

1. 30Laws and regulations could adversely affect our business
2. 31Litigation, legal or administrative proceedings could have an adverse impact on our business and financial condition or damage our reputation
3. 32Our international and cross-border operations are subject to additional risks
4. 33As a global business, our tax rate from period to period can be affected by many factors, including changes in tax