2 unchanged sentences
Market risk refers to the risk of loss from adverse changes in market prices and interest rates.
−Removed: The current COVID-19 outbreak situation remains dynamic and subject to rapid and possibly material change including, but not limited to, changes that may materially affect the operations of our customers and supply chain partners, which ultimately could result in material negative effects on our business and results of operations.
−Removed: Refer to Item 1A, Risk Factors, for additional discussion of our risks associated with pandemics, epidemics or disease outbreaks, such as COVID-19.
+Added: Supply chain costs and inflation.
+Added: We are exposed to risks associated with changes in the costs of our raw materials as well as changes to our supply and distribution costs.
+Added: During the fifty-two weeks ended August 27, 2022, our gross margins and profitability were negatively affected by higher raw material costs, higher freight and logistics costs, and supply chain challenges, including supply chain disruptions resulting from labor shortages as well as disruptions in ingredients, caused, in part, by the COVID-19 pandemic, the uncertain economic environment, and macroeconomic and geopolitical events and trends.
+Added: We expect these cost pressures and supply chain challenges to continue into fiscal year 2023.
+Added: In addition, current or future governmental policies may increase the risk of inflation, which could further increase the costs of ingredients, packaging and finished goods for our business.
+Added: As a result, we have instituted price increases effective in the first and fourth quarters of fiscal year 2022.
+Added: Management believes these price increases and additional cost savings initiatives will enable us to continue to invest in projects that drive growth.
+Added: However, there can be no assurance that the price increases will fully offset the effects of higher raw material and supply and distribution costs on our results of operations and financial condition.
+Added: Refer to Item 1A, Risk Factors, for additional discussion of our risks associated with the costs of our raw materials, our supply chain, and our risks associated with pandemics, epidemics or disease outbreaks, such as COVID-19.
Interest rate risk.
2 unchanged sentences
Interest rate changes do not affect the market value of such debt, but could affect the amount of our interest payments, and accordingly, our future earnings and cash flows, assuming other factors are held constant.
−Removed: Assuming average variable rate debt levels during the year, a 1% increase in interest rates would have increased interest expense by approximately $5.3 million for the fifty-two weeks ended August 28, 2021.
+Added: As of August 27, 2022, the outstanding balance of the Term Facility was $406.5 million.
+Added: Based on the amount outstanding of the Term Facility at the end of fiscal year 2022, a 1% increase in interest rates would increase our annual interest expense by approximately $4.1 million.
Foreign currency risk.
3 unchanged sentences
With the SimplyProtein Sale in September 2020 as well as the restructuring-related business activities in Europe, we have mitigated some of our risk of exposure to changes in foreign currency rates.
−Removed: While inflation may affect our revenue and cost of services and products, we believe the effects of inflation, if any, on our results of operations and financial condition during the fifty-two weeks ended August 28, 2021 have not been significant.
−Removed: However, there can be no assurance that results of operations and financial condition will not be materially affected by inflation in the future.
−Removed: Supply chain.
−Removed: We are exposed to risks associated with changes in the costs of our raw materials as well as changes to our supply and distribution costs.
−Removed: We expect higher raw material and freight costs in fiscal year 2022.
−Removed: As a result, in June 2021, management notified our customers of our plans to institute a price increase effective in September 2021, the first month of our fiscal year 2022.
−Removed: Management believes the price increase and productivity initiatives will enable us to continue to invest in projects that drive growth.
−Removed: However, there can be no assurance that the price increase will fully offset the effects of higher raw material and freight costs on our results of operations and financial condition.
−Removed: We have also begun to see logistics challenges, which we believe have contributed to lower retail and e-commerce sales of our products due to out-of-stock situations, delayed recognition of sales and higher than historical inventory levels.
−Removed: In addition, we could experience additional lost sale opportunities at our retail and e-commerce customers if our products are not available for purchase as a result of disruptions in our supply chain relating to an inability to obtain ingredients or packaging, labor challenges at our logistics providers or our contract manufacturers, or if our customers experience delays in stocking our products.
−Removed: Refer to Item 1A, Risk Factors, for additional discussion of our risks associated with the costs of our raw materials, such as our core ingredients and packaging, and our supply chain.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.