McCormick & Co., Inc. (MKC)

Risks

• A pandemic, including COVID-19, could have an adverse impact on our business, financial condition, and results of operations.
• Damage to our reputation or brand name, loss of brand relevance, increase in use of private label or other competitive brands by customers or consumers, or product quality or safety concerns could negatively impact our business, financial condition or results of operations.
• Customer consolidation, consumer behaviors, and competitive, economic and other pressures facing our customers, may impact our financial condition or results of operations.
• Our profitability may suffer as a result of competition in our markets.
• Our operations may be impaired as a result of disasters, business interruptions or similar events.
• We may not be able to successfully consummate and manage ongoing acquisition, joint venture and divestiture activities which could have an impact on our results.
• An impairment of the carrying value of goodwill or other indefinite-lived intangible assets could adversely affect our results.
• Streamlining actions to reduce fixed costs, simplify or improve processes, and improve our competitiveness may have a negative effect on employee relations.
• If we are unable to fully realize the benefits from our CCI program, our financial results could be negatively affected.
• Fluctuations in foreign currency markets may negatively impact us.
• The on-going effects of the decision by British voters to exit the European Union may negatively impact our operations.
• We face risks associated with certain pension assets and obligations.
• Climate change may negatively affect our business, financial condition and results of operations.
• ESG issues, including those related to climate change and sustainability, may have an adverse effect on our business, financial condition and results of operations and damage our reputation.
• Increases in interest rates or changes in our credit ratings may negatively impact us.
• Uncertain global economic conditions expose us to credit risks from customers and counterparties.
• Our credit ratings impact the cost and availability of future borrowings and, accordingly, our cost of capital.
• We may incur additional indebtedness to finance our acquisitions that may limit our ability to, among other matters, issue additional indebtedness, meet our debt service requirements, react to rising interest rates, comply with certain covenants and compete with less highly leveraged competitors.
• The deterioration of credit and capital markets may adversely affect our access to sources of funding.
• The uncertainty regarding the planned phase-out of LIBOR may negatively impact our operating results.
• The declaration, payment and amount of dividends is made at the discretion of our board of directors and depends on a number of factors.
• Our intellectual property rights, and those of our customers, could be infringed, challenged or impaired, and reduce the value of our products and brands or our business with customers.
• Our operations and reputation may be impaired if our information technology systems fail to perform adequately or if we are the subject of a data breach or cyber-attack.
• If we are not able to successfully implement our business transformation initiative or utilize information technology systems and networks effectively, our ability to conduct our business may be negatively impacted.
• Laws and regulations could adversely affect our business.
• Litigation, legal or administrative proceedings could have an adverse impact on our business and financial condition or damage our reputation.
• Our international and cross-border operations are subject to additional risks.
• The global nature of our business, changes in tax legislation and the resolution of tax uncertainties create volatility in our effective tax rate.