Irving / TX. (di) Darling Ingredients Inc. reported net income of USD 188.1 million, or USD 1.14 per diluted share for first quarter 2022, compared to net income of USD 151.8 million, or USD 0.90 per diluted share, for first quarter 2021. The company also reported net sales of USD 1.37 billion for the first quarter of 2022, as compared with net sales of USD 1.0 billion for the same period a year ago.
«Our global ingredients business had a record quarter, earning USD 244.1 million in Ebitda, driven by strong raw material volumes across the globe, robust finished products prices, including record high fat prices, and growing demand for green energy,» said Randall C. Stuewe, Chairman and Chief Executive Officer of Darling Ingredients Inc. «Adding USD 86.6 million in Ebitda from Diamond Green Diesel, Darling Ingredients earned USD 330.7 million in combined adjusted Ebitda for the first quarter of 2022. We kicked off the year with a very strong first quarter and carry tremendous momentum for the rest of the year.»
Darling Ingredients forecasts full year 2022 combined adjusted Ebitda at USD 1.55-USD 1.6 billion. The global ingredients business is estimated to exceed USD 1 billion in Ebitda. Diamond Green Diesel is estimated to produce 750 million gallons of renewable diesel at USD 1.25 per gallon Ebitda, bringing Darling Ingredients’ share of Ebitda for DGD to USD 468.8 million.
First quarter capital expenditures totaled approximately USD 71.6 million. The company also repurchased approximately USD 17.2 million of stock in the first quarter of 2022. As of April 2, 2022, Darling had USD 99.5 million in cash and cash equivalents, and USD 1.1 billion available under its committed revolving credit agreement. Total debt outstanding as of April 2, 2022 was USD 1.7 billion. The leverage ratio as measured by the company’s bank covenant was 1.69 as of April 2, 2022. On May 2, 2022, the company completed its acquisition of Valley Proteins. The company used borrowings under its senior credit facility to fund the acquisition.
Combined adjusted Ebitda was USD 330.7 million for the first quarter 2022, compared to USD 284.8 million for the same period in 2021.