Darling Ingredients: Reports Q3-2024 Financial Results

Irving / TX. (di) Darling Ingredients Inc. reported net income of USD 16.9 million, or USD 0.11 per diluted share for the third quarter of 2024, compared to net income of USD 125.0 million, or USD 0.77 per diluted share, for the third quarter of 2023. The decrease in net income was primarily due to a sharp year-over-year decline in fat prices and lower earnings within Diamond Green Diesel (DGD). The company also reported total net sales of USD 1.4 billion for the third quarter of 2024, compared with total net sales of USD 1.6 billion for the same period a year ago, reflecting lower finished product pricing.

«During the third quarter, Darling Ingredients continued to navigate challenging markets. Even with these headwinds, our core ingredients cash flows and dividends from DGD allowed us to reduce debt by about USD 192 million,» said Randall C. Stuewe, Chairman and Chief Executive Officer. «The environment for 2025 is shaping up nicely. Our sustainable aviation fuel plant is in the process of commissioning, the evolving regulatory landscape is increasingly supportive of the use of waste fats and oils as feedstocks in renewable fuels, paving the way for greater growth and improved margins.»

For the nine months ended September 28, 2024, Darling Ingredients reported net sales of USD 4.3 billion, compared to net sales of USD 5.2 billion for the same period in 2023. Net income for the first nine months of 2024 was USD 177.0 million, or USD 1.10 per diluted share, as compared to net income of USD 563.2 million, or USD 3.47 per diluted share, for the first nine months of 2023.

DGD sold 316.6 million gallons of renewable diesel for the third quarter 2024 at an average of USD 0.25 per gallon Ebitda. Darling Ingredients received USD 111.2 million cash dividends from Diamond Green Diesel during the third quarter of 2024. Year-to-date 2024, DGD has sold 959.5 million gallons at an average of USD 0.48 per gallon Ebitda.

Combined adjusted Ebitda for the third quarter of 2024 was USD 236.7 million, compared to USD 334.3 million for the same period in 2023. On a year-to-date basis, combined adjusted Ebitda totaled USD 790.4 million, as compared to USD 1.26 billion for the same period in 2023.

As of September 28, 2024, Darling Ingredients had USD 114.8 million in cash and cash equivalents, and USD 1.0 billion available under its committed revolving credit agreement. Total debt outstanding as of September 28, 2024, was USD 4.25 billion. The projected leverage ratio as measured by the company’s bank covenant was 4.04x as of September 28, 2024. Capital expenditures were USD 67.4 million for the third quarter 2024, and USD 259.1 million for the first nine months ended September 28, 2024.

For the full year, Darling Ingredients expects earnings of USD 1.15 billion to USD 1.175 billion combined adjusted Ebitda. This reflects assumptions of steady raw material volumes, volatile global commodity markets and uncertain regulatory programs. The company anticipates improved performance in 2025.