The company acquired Graphico, Inc., a Japan-based distributor, for $19.9 million, net of cash acquired, and expects it to contribute to greater expansion in the Asia-Pacific region. Strategic acquisitions are an important component of the company's overall strategy and product category diversification.

During the first quarter of 2024, the company exited the MEGALAC supplement portion of its Animal Nutrition business. In the second quarter, the company sold its Passport food safety business, Passport Food Safety Solutions, Inc. These actions reflect a portfolio optimization strategy.

The Company is focused on expanding in the locations in which we already do business and entering into new geographic locations, both of which require significant resources and investments which would affect our risk profile. The company has subsidiary operations in eight countries and exports products to over 130 other countries.

The Company continues to focus on controlling costs. Historically, the company has been able to mitigate the effects of cost increases primarily by implementing cost reduction programs. The company is also focused on improving efficiency in manufacturing and distribution.

During the third quarter of 2024, the company continued to experience a decline in market share and a deterioration in the financial performance for its Vitamins, Minerals and Supplements (“VMS”) business, which includes the VITAFUSION and L'IL CRITTERS trade name, primarily due to significant product competition coming from new category entrants, including private label.

The Company increased qualified dual sources of materials to approximately 60% of its total spend on direct materials as part of its resilient supply focus. The company is also managing its supply chain network and its ability to meet demands.

The company faces intense competition from consumer products companies, including private label and retailer-branded products. This competition may require the company to reduce prices, impacting profitability. The use of evolving technology to develop more complex pricing models by retailers has led and may continue to lead to pricing pressures in some categories.

Volatility and increases in the costs of raw materials, energy, labor, shipping, and other services could significantly affect profit margins if the company is unable to pass along higher costs in the form of price increases or otherwise achieve cost efficiencies.

A limited number of customers account for a large percentage of the company's net sales. Walmart is the company's largest customer, accounting for approximately 23% of net sales in 2024. Changes in the strategies of any of the company's largest customers could materially harm net sales and profitability.

The company competes in the household and personal care consumer product categories, which are highly innovative categories, characterized by a continuous flow of new products and line extensions, and require significant advertising and promotion. The company competes in these categories primarily on the basis of product innovation and performance, brand recognition, price, value and other consumer benefits.

The growing number of sales channels and business models, such as niche brands, internet-only brands and retailer co-developed and owned brands, have increased competition in certain product categories, particularly within personal care, specialty hair and skin care and dietary supplements, from less well capitalized competitors.

Because of the competitive retail environment, the company faces pricing pressure from its retail customers and customers selling through other channels, particularly high-volume retail customers including, internet-based retailers, who have increasingly sought to obtain pricing concessions or better trade terms that could reduce margins.

The company has increased qualified dual sources of materials to approximately 60% of its total spend on direct materials as part of its resilient supply focus. Alternative sources of supply are available in case of the disruption or termination of the supply agreements.

Volatility, and increases in the costs of raw materials without offsetting price increases, disruptions in production or transportation, or increases in the costs of energy, labor, shipping and other necessary services, or other inflationary pressures, could significantly affect profit margins if the company is unable to pass along any higher costs in the form of price increases.

The company initiates planned and unplanned expansion projects with respect to its facilities and those of its contract manufacturers and other suppliers which are subject to risks of, and the company has from time to time experienced, delay or cost overruns resulting from numerous factors.

The company relies extensively on information technology systems, some of which are managed by third-party service providers, to conduct its business. Increased information technology security threats and more sophisticated computer crime pose a potential risk to the security of the company's information technology systems, networks, and services, and those of its customers and other business partners.

The use of evolving technology to develop more complex pricing models by retailers has led and may continue to lead to pricing pressures in some categories.

Our future performance and growth depend on our ability to successfully identify, develop and introduce new products, product line extensions, products in adjacent categories to our current products, and anticipate changes in consumer preferences.

As of December 31, 2024, the company had approximately $2,205.0 million of total consolidated indebtedness, net of debt issuance costs. This amount of indebtedness could have important consequences, including making it more difficult for the company to satisfy its obligations.

On January 29, 2025, the Board declared a 4% increase in the regular quarterly dividend from $0.28375 to $0.295 per share, equivalent to an annual dividend of $1.18 per share payable to stockholders of record as of February 14, 2025. The increase raises the annual dividend payout from $277.0 to approximately $287.0 on an annualized basis.

The Company repurchases shares of its Common Stock from time to time pursuant to its publicly announced share repurchase programs. As a result of the Company's stock repurchases, there remains $658.9 of share repurchase availability under the 2021 Share Repurchase Program as of December 31, 2024.

Changing focus and sensitivity by governmental, non-governmental organizations, customers, consumers and investors to ESG issues, including those related to diversity and inclusion, climate change, plastic usage and ingredients, could result in increased operating or manufacturing costs and compliance challenges, which could adversely affect our business.

We are committed to transparency and accountability that will drive continuous progress. As part of our commitment to transparency and accountability, we publish workplace demographics of our employees in our Sustainability Reports.

We are subject to regulations regarding the transportation, storage or use of certain chemicals to protect the environment, as well as the Commission's rules with respect to "conflict minerals."

We collect, use and store personal data of our employees, customers and other third parties in the ordinary course of business, and we are required to comply with increasingly complex and changing data privacy and security laws and regulations.

Major developments in trade relations, including the imposition of new or increased tariffs or sanctions by the U.S. and/or other countries or other changes put in place by the new U.S. presidential administration, and any emerging nationalist trends in specific countries could alter the trade environment and consumer purchasing.

We believe that inflation and recessionary concerns are continuing to drive a decline in consumer spending for our most discretionary brands, Waterpik and Flawless, as consumers reduce spending in these categories and shift to lower cost alternatives.