The company faces market risks from fluctuating foreign currency exchange rates, interest rates, and commodity prices. Credit risk exists from counterparties and top customers. Litigation and regulatory proceedings, including potential Clean Water Act violations, pose uncertain costs. Uncertainties in estimating future cash flows for goodwill and intangible assets exist. Economic pressures on consumers and supply chain disruptions are also noted as risks.
Financial Upside
The acquisition of Sovos Brands is expected to increase net sales and generate cost synergies. Cost savings initiatives, including those related to the Snyder's-Lance acquisition, are projected to generate ongoing savings. The company is pursuing share repurchase programs and has issued new debt. A sale of the noosa yogurt business is in progress.
