Darling Ingredients: Delivers Another Record Quarter

Irving / TX. (di) Darling Ingredients Inc. reported another record quarter, with net income of USD 202 million, or USD 1.23 per diluted share for the second quarter 2022, compared to net income of USD 196.6 million, or USD 1.17 per diluted share, for the second quarter 2021. The company also reported net sales of USD 1.65 billion for the second quarter of 2022, as compared with net sales of USD 1.2 billion for the same period a year ago. Second quarter 2022 highlights:

  • Net income of USD 202 million, or USD 1.23 per GAAP diluted share
  • Net Sales of USD 1.65 billion
  • Combined adjusted Ebitda of USD 402.6 million
  • Repurchased USD 48.7 million of stock

«Darling Ingredients delivered another record quarter, setting an all-time quarterly high of USD 402.6 million in combined adjusted Ebitda,» said Randall C. Stuewe, Chairman and Chief Executive Officer of Darling Ingredients Inc. «This quarter’s outstanding performance illustrates our diversified platform of specialty ingredients and decarbonization solutions and our ability to adapt to dynamic market conditions.»

For the six months ended July 2, 2022, Darling Ingredients reported net sales of USD 3 billion, compared to net sales of USD 2.2 billion for the same period in 2021. Net income attributed to Darling Ingredients for the first six months of 2022 was USD 390 million, or USD 2.37 per diluted share, as compared to net income of USD 348.3 million, or USD 2.08 per diluted share, for the first six months of 2021.

Combined adjusted Ebitda was USD 402.6 million for the second quarter 2022, compared to USD 353.7 million for the same period in 2021. On a year-to-date basis, combined adjusted Ebitda totaled USD 733.2 million for 2022, as compared to USD 638.5 million for the same period in 2021.

Under Darling Ingredients’ share repurchase program, the company repurchased approximately 700,000 shares of common stock during the second quarter for a total of USD 48.7 million, bringing the total stock repurchased year to date 2022 as of July 2, 2022, to approximately 971,000 shares of common stock for a total of USD 65.9 million.

As of July 02, 2022, Darling had USD 146.8 million in cash and cash equivalents, and USD 1.4 billion available under its committed revolving credit agreement. Total debt outstanding as of July 2, 2022 was USD 2.9 billion. The leverage ratio as measured by the company’s bank covenant was 2.59 as of July 2, 2022. Second quarter capital expenditures totaled approximately USD 79.9 million.

On May 02, 2022, Darling Ingredients completed the acquisition of Valley Proteins, one of the largest independent rendering companies in the United States. On Aug. 1, 2022, the company completed its acquisition of FASA Group, the largest independent rendering company in Brazil. The company used cash on hand and borrowings under the company’s amended credit agreement to fund the acquisitions.

Darling Ingredients reaffirms its previously announced forecast for full year 2022 of USD 1.55-USD 1.6 billion combined adjusted Ebitda.

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