Oil-Dri Corp. of America (ODC) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01Our future growth and financial performance are meaningfully impacted by successful new product introductions
2. 02We face intense competition in our markets
3. 03Our periodic results may be volatile
4. 04Uncertainties in economic conditions and their impact on consumer spending patterns could adversely impact our business, financial condition, and results of operations
5. 05Acquisitions involve a number of risks, any of which could cause us not to realize the anticipated benefits
6. 06We depend on a limited number of customers for a large portion of our net sales
7. 07Price or trade concessions, or the failure to make them to retain customers, could adversely affect our sales and profitability
8. 08Increases in energy, commodity, transportation, labor and other costs would increase our operating costs, and we may be unable to pass all these increases on to our customers in the form of higher prices and surcharges
9. 09Increasingly competitive labor markets, changes in the availability of our workers, and labor shortages in our supply chain, could result in increased costs, such as increased wage rates to attract and retain employees, and could negatively affect our ability to efficiently operate our facilities and overall business
10. 10Our business could be negatively affected by supply, capacity, labor, information technology, logistics and other disruptions or the costs incurred to avoid these disruptions
11. 11We depend on our mining operations for a majority of our supply of sorbent minerals
12. 12We may not be successful in acquiring adequate additional reserves in the future
13. 13The loss of any key member of our senior management team and other key personnel may impede the implementation of our business plans in a timely manner

Risks Related to Regulatory Compliance

1. 14Environmental, health and safety matters create potential compliance and other liability risks
2. 15Government regulation imposes significant costs on us, and future regulatory changes (or related customer responses to regulatory changes) could increase those costs or limit our ability to produce and sell our products
3. 16We face risks to our domestic and international sales and business operations due to political, regulatory, economic and other conditions
4. 17conflicts. These developments, as well as the risks outlined above, could have a material adverse effect on the Company’s business, financial condition and results of operations
5. 18We may incur adverse safety events or product liability claims that may be costly, create adverse publicity and may add further governmental regulation
6. 19Goodwill, long-lived, and other intangible assets recorded as a result of our acquisitions could become impaired
7. 20We may be subjected to increased taxes or fluctuating tax rates, which could adversely affect our results of operations and/or cash flows

Risks Related to Our Common Stock

1. 21We cannot guarantee that that our share repurchases will enhance long-term shareholder value
2. 22Our principal stockholders have the ability to control matters requiring a stockholder vote and could delay, deter or prevent a change in control of our company
3. 23We are a “controlled company” within the meaning of the New York Stock Exchange (“NYSE”) rules and, as a result, qualify for, and intend to rely on, exemptions from certain corporate governance requirements
4. 24The market price of our Common Stock may be volatile
5. 25Future sales of our Common Stock could depress its market price
6. 26Future dividends on our Common Stock may be restricted or eliminated
7. 27Technology failures or cyber security breaches or other unauthorized access to our information technology systems or sensitive or proprietary information could have an adverse effect on the Company's business and operations
8. 28Technology failures or cyber security breaches or other unauthorized access to information technology systems of our customers, suppliers or vendors could have an adverse effect on the Company's business and operations
9. 29Our business could be adversely affected by a widespread threat to public health
10. 30We are subject to various legal and regulatory proceedings, including litigation in the ordinary course of business, which may adversely impact our business, financial condition and results of operations
11. 31Failure to maintain effective internal control over financial reporting could have a material adverse effect on our business, operating results and stock price
12. 32Failure to maintain a level of corporate social responsibility could damage our reputation and could adversely affect our business, financial condition or results of operations
13. 33Our business could be adversely affected by labor disputes and an inability to renew collective bargaining agreements at acceptable terms
14. 34We will no longer qualify as a "smaller reporting company" and, commencing with our Quarterly Report on Form 10-Q for the period ending October 31, 2024, we may no longer take advantage of reduced disclosure and reporting requirements applicable to smaller reporting companies