Darling Ingredients Reports First Quarter 2021 Financial Results

Irving / TX. (di) Darling Ingredients Inc., a global developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a wide range of ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, industrial, fuel, bioenergy, and fertilizer industries, announced financial results for the three-month (Q1-2021) ended April 03, 2021.

Q1-2021 Financial Results

  • Net income of USD 151.8 million, or USD 0.90 per GAAP diluted share
  • Net Sales of USD 1.05 billion
  • Combined adjusted Ebitda of USD 284.8 million
  • Global Ingredients business Q1 Ebitda of USD 176.6 million, best quarter in the Company’s history
  • Diamond Green Diesel (DGD) earned a record USD 2.77 Ebitda per gallon, contributing USD 108.2 million of Ebitda to Darling’s fuel segment

Darling reported net sales of USD 1.05 billion for the first quarter of 2021, as compared with net sales of USD 852.8 million for the same period a year ago. Net income attributable to Darling for the three months ended April 3, 2021 was USD 151.8 million, or USD 0.90 per diluted share, compared to net income of USD 85.5 million, or USD 0.51 per diluted share, for the first quarter of 2020.

«Our worldwide team delivered the best quarter in our Company’s history as our global ingredients business generated USD 176.6 million of Ebitda in the first quarter,» said Randall C. Stuewe, Chairman and Chief Executive Officer of Darling Ingredients Inc. «Adding the strong Q1 performance of DGD, our 2021 is off to a great start with USD 284.8 million of combined adjusted Ebitda.»

«Both of the renewable diesel projects at DGD remain on track, with the expansion at Norco, LA due to begin production in the middle of Q4 of 2021 and the 470 million gallon facility under construction in Port Arthur expected to be operational in the second half of 2023,» Stuewe added. «With the startup of the Norco expansion, we believe that DGD will be able to sell approximately 365 million gallons of renewable diesel this year. The record USD 2.77 Ebitda per gallon reported in Q1 by DGD, leads us to believe that DGD’s Ebitda per gallon will average in the range of USD 2.25 to USD 2.40 Ebitda per gallon for all of 2021,» Stuewe stated.

«As a result of the solid performance of our global ingredients business to start the year and an improved outlook for DGD, we are increasing our combined adjusted Ebitda guidance to a range of USD 1.075 billion to USD 1.150 billion for 2021. This new guidance range is 28 percent to 35 percent better than our 2020 performance and sets up our global business for continued growth and improved profitability into the future,» commented Stuewe.

As of April 3, 2021, Darling had USD 71.4 million in cash and cash equivalents, and USD 879.9 million available under its committed revolving credit agreement. Total debt outstanding at the end of the three months ended April 3, 2021 was USD 1.4 billion.

Combined adjusted Ebitda was USD 284.8 million for the first quarter of 2021, compared to USD 213.3 million for the same period in 2020.