Primo Water (PRMW)

Risks

• The COVID-19 pandemic has adversely affected, and may continue to affect our business, financial condition and results of operations.
• We may be unable to compete successfully in the markets in which we operate.
• Our ingredients, packaging supplies and other costs are subject to price increases, and we may be unable to effectively pass rising costs on to our customers.
• If we are unable to maintain relationships with our raw material suppliers, we may incur higher supply costs or be unable to deliver products to our customers.
• If we fail to manage our operations successfully, our business and results of operations may be negatively affected.
• Our geographic diversity subjects us to the risk of currency fluctuations.
• Uncertainty in the financial markets and other adverse changes in general economic conditions in the countries in which we do business could adversely affect our industry, business and results of operations.
• Substantial disruption to production at our production facilities could occur.
• Our business is dependent on our ability to maintain access to our water sources; water scarcity, government regulation of water access and poor quality could negatively affect our long-term financial performance.
• Climate change may have a long-term adverse impact on our business and results of operations.
• Our success depends, in part, on our intellectual property, which we may be unable to protect.
• Our business is seasonal and adverse weather conditions could negatively affect our business, financial condition and results of operations.
• Global or regional catastrophic events could affect our operations and results of operations.
• We may devote a significant amount of our management’s attention and resources to our ongoing review of strategic opportunities, and we may not be able to fully realize the potential benefit of any such alternatives that we pursue.
• We may not realize the expected revenue and cost synergies related to our acquisitions.
• Changes in future business conditions could cause business investments and/or recorded goodwill, indefinite life intangible assets or other intangible assets to become impaired, resulting in substantial losses and write-downs that would negatively affect our results of operations.
• We have a significant amount of outstanding indebtedness, which could adversely affect our financial health, and future cash flows may not be sufficient to meet our obligations.
• Our Revolving Credit Facility and the indentures governing our outstanding notes each contain various covenants limiting the discretion of our management in operating our business, which could prevent us from capitalizing on business opportunities and taking some corporate actions.
• A portion of our debt may be variable rate debt, and changes in interest rates could adversely affect us by causing us to incur higher interest costs with respect to such variable rate debt.
• Our success depends in part upon our ability to recruit, retain and prepare succession plans for our CEO, CFO, senior management and key employees.
• Our business could be adversely affected by increased labor costs.
• We may not be able to renew collective bargaining agreements on satisfactory terms, or we could experience strikes.
• Our products may not meet health and safety standards or could become contaminated and we could be liable for injury, illness or death caused by consumption of our products.
• Litigation or legal proceedings could expose us to significant liabilities and damage our reputation.
• Changes in the legal and regulatory environment in the jurisdictions in which we operate could negatively affect our results of operations, adversely affect demand for our products and services or result in litigation.
• We are subject to risks associated with our international operations, including compliance with applicable U.S. and foreign anti-corruption laws and regulations, such as the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act of 2010 and other applicable anti-corruption laws, which may increase the cost of doing business in international jurisdictions.
• We are subject to the risk of increased taxes.
• We depend on key information systems and third-party service providers.
• If we are unable to securely maintain our customers’ confidential or credit card information, or other private data relating to our employees or our Company, we could be subject to negative publicity, costly government enforcement actions or private litigation, which could damage our business reputation and negatively affect our results of operations.
• We may not continue our quarterly dividend and shareowners may never obtain a return on their investment.
• We also face other risks that could adversely affect our business, results of operations or financial condition, which include: