The company faces risks from fluctuating commodity prices (raw materials, energy), foreign currency exchange rate changes, and interest rate fluctuations. Lower restaurant traffic and frozen potato demand, customer share losses, and a voluntary product withdrawal negatively impact sales volume. Higher manufacturing costs, restructuring charges, and increased depreciation are expected to offset volume growth and cost-saving initiatives. Legal proceedings and integration risks from acquisitions also pose potential financial challenges.
Financial Upside
Improved sales volume and product mix are expected to drive sales growth, particularly in international markets. The restructuring plan, including facility closures and cost reductions, aims to improve operating efficiency, profitability, and cash flow. The company anticipates cost savings from the restructuring plan and expects to reduce working capital. Recent customer contract wins and the lapping of prior year ERP system transition impacts are expected to increase volume in the second half of fiscal 2025.
