Darling Ingredients: Reports Q3-2021 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 (Q3-2021) ended October 02, 2021.

Q3-2021 Financial Results

  • Net income of USD 146.8 million, or USD 0.88 per GAAP diluted share
  • Net Sales of USD 1.2 billion
  • Combined adjusted Ebitda of USD 289.6 million
  • Global Ingredients business reported Q3 Ebitda of USD 229.6 million
  • Renewable diesel JV, Diamond Green Diesel (DGD) contributed USD 60.0 million of Ebitda to Darling
  • Darling repurchased approximately USD 22 million of common stock in the third quarter

Darling reported net sales of USD 1.2 billion for the third quarter of 2021, as compared with net sales of USD 851 million for the same period a year ago. Net income attributable to Darling for the three months ended October 2, 2021 was USD 146.8 million, or USD 0.88 per diluted share, compared to net income of USD 101.1 million, or USD 0.61 per diluted share, for the third quarter of 2020.

«We produced another strong quarterly earnings in our global ingredients business, reporting adjusted Ebitda of approximately USD 230 million for the third quarter,» said Randall C. Stuewe, Chairman and Chief Executive Officer of Darling Ingredients Inc. «Demand for protein products and low carbon feedstocks around the world continue to provide positive tailwinds for our global platform, enabling us to deliver what we expect to be our best annual financial results in Darling Ingredients’ history and in line with our previous guidance of combined adjusted Ebitda of USD 1.275 billion for the year.»

«DGD’s Norco, Louisiana expansion project was completed ahead of schedule and continues to ramp up and should reach our expected operating capacity within the next week,» stated Stuewe. «Our Port Arthur DGD III project continues to make exceptional progress on construction and remains on target for completion in the first half of 2023.»

Under Darling’s current share repurchase authorization, the Company repurchased 319,330 shares of common stock during the third quarter for a total of USD 22.3 million. Darling has approximately USD 102 million remaining under its current authorization which was extended to August 13, 2022. For the first nine months of 2021, the Company has repurchased approximately USD 98 million of common stock.

For the nine months ended October 2, 2021, Darling reported net sales of USD 3.4 billion, as compared with net sales of USD 2.6 billion for the same period of 2020. Net Income attributable to Darling for the first nine months of 2021 was USD 495.2 million, or USD 2.96 per diluted share, as compared to a net income of USD 252.1 million, or USD 1.51 per diluted share, for the first nine months of 2020.

As of October 2, 2021, Darling had USD 67.4 million in cash and cash equivalents, and USD 912.6 million available under its committed revolving credit agreement. Total debt outstanding as of October 2, 2021 was USD 1.38 billion. Capital expenditures (exclusive of DGD investments) of USD 191.7 million were made during the first nine months of fiscal 2021, compared to USD 184.9 million in the first nine months of fiscal 2020.

Combined adjusted Ebitda was USD 289.6 million for the third quarter of 2021, compared to USD 218.5 million for the same period in 2020. On a year-to-date basis, combined adjusted Ebitda totaled USD 928.1 million for 2021, compared to USD 627.0 million on a year-to-date basis for 2020.