J M Smucker (SJM) risk factors, FY2025 10-K

Risks Related to Our Business

1. 01Deterioration of national and global macroeconomic conditions, an economic recession or slow growth, periods of inflation, or economic uncertainty in key markets may adversely affect consumer spending and demand for our products
2. 02Our proprietary brands, packaging designs, and manufacturing methods are essential to the value of our business, and the inability to protect our intellectual property could harm the value of our brands and adversely affect our sales and profitability
3. 03Loss or interruption of supply from primary or single-source suppliers of raw materials and finished goods could have a disruptive effect on our business and adversely affect our results of operations
4. 04Certain of our products are produced at single manufacturing sites
5. 05A significant interruption in the operation of any of our supply chain or distribution capabilities could have an adverse effect on our business, financial condition, and results of operations
6. 06Our business could be harmed by strikes or work stoppages
7. 07The success of our business depends substantially on consumer perceptions of our brands
8. 08We may not be able to attract, develop, and retain the highly skilled people we need to support our business, and our results could be adversely impacted as a result of increased labor and employee-related expenses
9. 09We may not realize the benefits we expect from our cost reduction and other cash management initiatives
10. 10Our success will depend on our continued ability to produce and successfully market products with extended shelf life

Risks Related to Our Industry

1. 11Our operations are subject to the general risks of the food industry
2. 12Changes in our relationships with significant customers, including the loss of our largest customer, could adversely affect our results of operations
3. 13We operate in the competitive food industry and continued demand for our products may be affected by our failure to effectively compete or by changes in consumer preferences
4. 14We may be limited in our ability to pass cost increases onto our customers in the form of price increases or may realize a decrease in sales volume to the extent price increases are implemented
5. 15We must leverage our brand value to compete against private label products and lower-priced alternative brands
6. 16Our ability to competitively serve customers depends on the availability of reliable transportation. Increases in logistics and other transportation-related costs could adversely impact our results of operations

Financial Risks

1. 17Our results may be adversely impacted as a result of increased cost, limited availability, and/or insufficient quality of raw materials, including commodities and agricultural products
2. 18Our efforts to manage commodity, foreign currency exchange, and other price volatility through derivative instruments could adversely affect our results of operations and financial condition
3. 19Weak financial performance, downgrades in our credit ratings, or disruptions in the financial markets may adversely affect our ability to access capital in the future
4. 20Our substantial debt obligations could restrict our operations and financial condition. Additionally, our ability to generate cash to make payments on our indebtedness depends on many factors beyond our control
5. 21A material impairment in the carrying value of acquired goodwill or other intangible assets could negatively affect our consolidated operating results and net worth
6. 22U.S. Retail Pet Foods segment, which represent approximately 80 percent of the total goodwill and indefinite-lived intangible assets as of April 30, 2025
7. 23material indefinite-lived intangible assets are more likely than not impaired as of April 30, 2025. For additional information, refer to Note 7: Goodwill and Other Intangible Assets
8. 24The declaration, payment, and amount of dividends is made at the discretion of our Board and depends on a number of factors

Risks Related to Regulation and Litigation

1. 25We could be subject to adverse publicity or claims from consumers
2. 26Changes in tax, environmental, or other regulations and laws, or their application, or failure to comply with existing licensing, trade, and other regulations and laws could have a material adverse effect on our financial condition
3. 27Our international operations expose us to regulatory risks
4. 28Risks associated with corporate responsibility matters may negatively affect our business and operations
5. 29Risks associated with climate change and other environmental impacts or legal, regulatory, or market measures to address climate change may negatively affect our business and operations
6. 30which requires our processes and controls for such data to evolve as well
7. 31We may be unable to grow market share of our products
8. 32If our information technology systems fail to perform adequately or we are unable to protect such information technology systems against data corruption or cybersecurity incidents, our operations could be disrupted, and we may suffer financial damage or loss because of lost or misappropriated information
9. 33We may face complications with the design or implementation of our new enterprise performance management (“EPM”) system, which may negatively affect our business and operations
10. 34Ongoing geopolitical conflicts and the related disruptions to the global economy could adversely affect our business, financial condition, or results of operations