Irving / TX. (di) Darling Ingredients Inc. reported net income of USD 252.4 million, or USD 1.55 per diluted share for second quarter of 2023, compared to net income of USD 202.0 million, or USD 1.23 per diluted share, for second quarter of 2022. The company also reported net sales of USD 1.8 billion for the second quarter of 2023, compared with net sales of USD 1.7 billion for the same period a year ago.
«Second quarter was an incredible quarter for Darling Ingredients. We delivered our strongest financial results in the company’s history, driven by the strength of the vertically integrated business we have built,» said Chairman and CEO Randall C. Stuewe. «Fat prices decreased quarter over quarter, which demonstrated how beneficial that can be for our Fuel segment. The power of our integrated waste fats and oils business combined with best-in-class renewable diesel production was clearly on display this quarter.»
For the six months ended July 1, 2023, Darling Ingredients reported net sales of USD 3.5 billion, compared to net sales of USD 3.0 billion for the same period in 2022. Net income for the first six months of 2023 was USD 438.2 million, or USD 2.69 per diluted share, as compared to net income of USD 390.0 million, or USD 2.37 per diluted share, for the first six months of 2022.
Diamond Green Diesel (DGD) sold a record 387.8 million gallons of renewable diesel for the second quarter 2023 at an average of USD 1.28 per gallon Ebitda. Year-to-date, DGD has sold 643.3 million gallons of renewable diesel at an average of USD 1.17 per gallon Ebitda. During the second quarter, Darling Ingredients received USD 101.4 million in cash dividends from the joint venture. Subsequent to the quarter close, Darling Ingredients received an additional USD 62.2 million in cash dividends from the joint venture.
Combined adjusted Ebitda for the second quarter 2023 was USD 508.3 million, compared to USD 402.6 million for the same period in 2022. On a year-to-date basis, combined adjusted Ebitda totaled USD 926.7 million, as compared to USD 733.2 million for the same period in 2022. Excluding a one-time purchase accounting inventory negative impact of USD 18.5 million in the Food segment due to the Gelnex acquisition, combined adjusted Ebitda would have been USD 526.8 million for the second quarter 2023.
The company repurchased approximately 153,000 shares of common stock during the second quarter of 2023 for approximately USD 9.1 million. Stock repurchased year to date 2023 is approximately 926,000 shares for a total of USD 52.9 million. Approximately USD 321.6 million remains under the company’s Board approved share repurchase program.
As of July 01, 2023, Darling Ingredients had USD 111.5 million in cash and cash equivalents, and USD 956.0 million available under its committed revolving credit agreement. Total debt outstanding as of July 01, 2023, was USD 4.5 billion. The leverage ratio as measured by the company’s bank covenant was 3.11X as of July 01, 2023. Capital expenditures were USD 123.0 million for the second quarter 2023, and USD 234.3 million for the first six months ended July 01, 2023.
The company reaffirms guidance for fiscal year 2023 at USD 1.875 billion combined adjusted Ebitda.