Risk Factors Update Summary

• Adverse macroeconomic conditions, including inflation and public health crises, may impact consumer preferences unpredictably. This change might result in significant shifts in demand for our products.
• Our supply chain disruptions could lead to increased costs, potentially affecting profitability by millions.
• Our largest customer, Walmart, accounted for 19% of consolidated net sales in fiscal 2024, up from 17% in fiscal 2023. This change indicates increased reliance on a single customer.
• The ongoing conflict in Ukraine has resulted in increased inflation and constrained availability of raw materials.
• We recorded a goodwill impairment charge related to our Cheese and Dairy reporting unit in fiscal 2023. This could negatively impact our financial condition and investor confidence.
• The company now faces heightened interest rates, which could impact financial performance significantly.
• Unforeseen complexity in implementing new ERP systems could adversely impact our financial reporting and operations.
• We are required to make significant capital investments to comply with changing regulatory requirements, such as transitioning to cage-free eggs. This could strain our financial resources.
• Internal control over financial reporting is now effective as of September 30, 2024, extending the compliance period.
• Labor strikes or disruptions may hinder our ability to manufacture products, impacting operations significantly.
• The integration of Pet Food operations from the Perfection acquisition may encounter difficulties, impacting anticipated benefits. This could delay expected synergies and affect overall performance.
• The company has updated its equity incentive plans, which may affect shareholder ownership dynamics.
• Changes in governmental administrations and geopolitical events could negatively affect our supply chain operations.