Seneca Foods (SENEA) risk factors, FY2025 10-K

Other

1. 01Excess capacity in the fruit and vegetable industry has a downward impact on selling price
2. 02Growing cycles and adverse weather conditions may decrease our results from operations
3. 03The commodity materials that we package or otherwise require are subject to price increases that could adversely affect our profitability
4. 04Changes in economic conditions that impact consumer spending could harm our business
5. 05Pandemics or disease outbreaks may disrupt our business, including among other things, our supply chain, our manufacturing operations and customer and consumer demand for our products, and could have a material adverse impact on our business
6. 06Our efforts to manage and mitigate these factors may be unsuccessful, and the effectiveness of these efforts depends on factors beyond our control, including the duration and severity of any pandemic or disease outbreak, as well as third party actions taken to contain its spread and mitigate public health effects
7. 07We depend upon key customers
8. 08If we do not maintain the market shares of our products, our business and revenues may be adversely affected
9. 09Increases in logistics and other transportation-related costs could materially adversely impact our results of operations
10. 10A recall of our products could have a material adverse effect on our business. In addition, we may be subject to significant liability should the consumption of any of our products cause injury, illness or death
11. 11Pending and future litigation may lead us to incur significant costs
12. 12We face risks associated with our defined benefit pension plan
13. 13We generate agricultural food packaging wastes and are subject to substantial environmental regulation
14. 14Our production capacity for certain products and commodities is concentrated in a limited number of facilities, exposing us to a material disruption in production in the event that a disaster strikes
15. 15We may undertake acquisitions or product innovations and may have difficulties integrating them or may not realize the anticipated benefits
16. 16We are dependent upon a seasonal workforce and our inability to hire sufficient employees may adversely affect our business
17. 17Increases in labor costs or work stoppages or strikes could materially and adversely affect our financial condition and results of operations
18. 18Environmental and other regulation of our business, including climate change regulation, could adversely impact us by increasing our production cost or restricting our ability to import certain products into the United States
19. 19There may be increased governmental legislative and regulatory activity in reaction to consumer perception related to enamels
20. 20The implementation of the Food Safety Modernization Act of 2011 may affect operations
21. 21Our results are dependent on successful marketplace initiatives and acceptance by consumers of our products
22. 22Global economic conditions may materially and adversely affect our business, financial condition and results of operations
23. 23Our ability to manage our working capital and our Revolving Credit Facility is critical to our success
24. 24Failure to comply with the requirements of our debt agreements could have a material adverse effect on our business

Risks Relating to Our Stock

1. 25Our existing shareholders, if acting together, may be able to exert control over matters requiring shareholder approval
2. 26Our certificate of incorporation and bylaws contain provisions that discourage corporate takeovers
3. 27the affirmative vote of two-thirds of the shares present and entitled to vote is required to amend our bylaws or remove a director; and
4. 28We have not paid dividends on our common stock in the past

Other Risks

1. 29Tax legislation could impact future cash flows
2. 30The tax status of our insurance subsidiary could be challenged resulting in an acceleration of income tax payments