Darling Ingredients: Reports Q3-2022 Financial Results

Irving / TX. (di) Darling Ingredients Inc. reported net income attributable to the company of USD 191 million, or USD 1.17 per diluted share for the third quarter 2022, compared to net income attributable to the company of USD 146.8 million, or USD 0.88 per diluted share, for the third quarter 2021. The company also reported net sales of USD 1.7 billion for the third quarter of 2022, as compared with net sales of USD 1.2 billion for the same period a year ago.

«Darling Ingredients delivered another strong quarter, carrying great momentum to finish the year with record earnings,» said Randall C. Stuewe, Chairman and Chief Executive Officer of the company Inc. «Strong worldwide demand for fats and proteins will continue to be a tailwind for our global ingredients business. Diamond Green Diesel III is expected to come on-line within the next week, six months ahead of schedule. This, once again, showcases our strength and expertise to satisfy demand for decarbonization solutions in a meaningful way.»

For the nine months ended October 01, 2022, the company reported net sales of USD 4.8 billion, compared to net sales of USD 3.4 billion for the same period in 2021. Net income attributable to the company for the first nine months of 2022 was USD 581.1 million, or USD 3.54 per diluted share, as compared to net income attributable to the company of USD 495.2 million, or USD 2.96 per diluted share, for 9M-2021.

Combined adjusted Ebitda was USD 394.7 million for the third quarter 2022, compared to USD 289.6 million for the same period in 2021. On a year-to-date basis, combined adjusted Ebitda totaled USD 1.13 billion for 2022, as compared to USD 928 million for the same period in 2021.

Under the company’ share repurchase program, the company repurchased approximately 609,000 shares of common stock during the third quarter for a total of USD 37.2 million, bringing the total stock repurchased year to date 2022 as of October 01, 2022, to approximately 1.58 million shares of common stock for a total of USD 103.1 million.

As of October 01, 2022, Darling had USD 126.1 million in cash and cash equivalents, and USD 1.35 billion available under its committed revolving credit agreement. Total debt outstanding as of October 01, 2022 was USD 3.3 billion. The leverage ratio as measured by the company’s bank covenant was 2.48 as of October 01, 2022. Year-to-date capital expenditures totaled approximately USD 257.1 million.

On August 01, 2022, the company completed the acquisition of FASA Group, the largest independent rendering company in Brazil. On October 018, 2022, the company announced it had entered into a definitive agreement to acquire all of the shares of Gelnex, a leading global producer of collagen products for approximately USD 1.2 billion USD in cash. the company also announced on Nov. 2, 2022, that it has entered into a definitive agreement to purchase Polish rendering company, Miropasz Group for approximately €110 million Euros.

the company reaffirms its previously announced forecast for full year 2022 of USD 1.55-USD 1.6 billion combined adjusted Ebitda.

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