Darling Ingredients: Reports Q4 and FY-2023 Results

Irving / TX. (di) Darling Ingredients Inc. reported net income of USD 84.5 million, or USD 0.52 per diluted share for fourth quarter of 2023, compared to net income of USD 156.6 million, or USD 0.96 per diluted share, for fourth quarter of 2022. The decrease in net income was primarily due to a decrease in Darling’s share of Diamond Green Diesel (DGD) earnings. The company also reported net sales of USD 1.6 billion for the fourth quarter of 2023, compared with net sales of USD 1.8 billion for the same period a year ago.

For the fiscal year ended December 30, 2023, Darling Ingredients reported net sales of USD 6.8 billion, compared to net sales of USD 6.5 billion for fiscal year 2022. Net income for fiscal year 2023 was USD 647.7 million, or USD 3.99 per diluted share, as compared to net income of USD 737.7 million, or USD 4.49 per diluted share in fiscal year 2022.

«Darling Ingredients had another great year with its 6th record year of growth in volumes and combined adjusted Ebitda,» said Randall C. Stuewe, Darling Ingredients Chairman and Chief Executive Officer. «Our vertically integrated business continues to demonstrate that Darling Ingredients can deliver strong earnings that offsets commodity volatility.»

DGD sold 336.6 million gallons of renewable diesel for the fourth quarter 2023 at an average of USD 0.23 per gallon Ebitda. In 2023, DGD sold 1.2 billion gallons of renewable diesel at an average of USD 0.81 per gallon Ebitda. Darling Ingredients received a total of USD 163.6 million in cash dividends from the joint venture in 2023.

Combined adjusted Ebitda for the fourth quarter 2023 was USD 350.9 million, compared to USD 413.0 million for the same period in 2022. Combined adjusted Ebitda for fiscal year 2023 totaled USD 1.61 billion, as compared to USD 1.54 billion in fiscal year 2022.

As of December 30, 2023, Darling Ingredients had USD 126.5 million in cash and cash equivalents, and USD 832.5 million available under its committed revolving credit agreement. Total debt outstanding as of December 30, 2023, was USD 4.4 billion. The leverage ratio as measured by the company’s bank covenant was 3.26X as of December 30, 2023. Capital expenditures were USD 174.9 million for the fourth quarter 2023, and USD 555.5 million for fiscal year 2023.

Stuewe: «Darling Ingredients is committed to continuing to drive shareholder results. We have built a strong business and remain optimistic on a strong performance in 2024.»

For additional information please read the Company’s PDF file below (140 KB):

20240228-DARLING-FY2023.