Irving / TX. (di) Darling Ingredients Inc. reported net income of USD 185.8 million, or USD 1.14 per diluted share for first quarter of 2023, compared to net income of USD 188.1 million, or USD 1.14 per diluted share, for first quarter of 2022. The company also reported net sales of USD 1.8 billion for the first quarter of 2023, compared with net sales of USD 1.4 billion for the same period a year ago.
Combined adjusted Ebitda for the first quarter 2023 was USD 418.4 million, compared to USD 330.7 million for the same period in 2022.
«Darling Ingredients is off to a very solid start in 2023. Raw material volumes are in line with expectations, our global collagen and gelatin business remains robust and Diamond Green Diesel is expected to gain tremendous momentum in second quarter as lower fat prices will boost renewable diesel margins on expected higher volumes,» said Randall C. Stuewe, Chairman and Chief Executive Officer. «The power of the vertically integrated business we have built will become evident over the next few quarters. Darling’s low-carbon feedstocks, coupled with Diamond Green Diesel best-in-class margins, will illustrate the margin potential for renewable diesel in a lower priced feedstock environment while still delivering strong core ingredients earnings supplemented by the recently completed Gelnex acquisition.»
Under the company’s share repurchase program, the company repurchased approximately 773,000 shares of common stock during the first quarter of 2023 for a total of approximately USD 43.8 million, and has approximately USD 330.7 million remaining under the share repurchase program.
As of April 1, 2023, Darling Ingredients had USD 132.6 million in cash and cash equivalents, and USD 866.1 million available under its committed revolving credit agreement. Total debt outstanding as of April 1, 2023, was USD 4.7 billion. The leverage ratio as measured by the company’s bank covenant was 3.19x as of April 1, 2023. Capital expenditures were USD 111.3 million for the first quarter 2023.
Company guidance for fiscal year 2023 is USD 1.875 billion combined adjusted Ebitda.