- Net income of $101.9 million, or $0.63 per GAAP diluted share
for fourth quarter and $278.9 or $1.73 per GAAP diluted share for
the year
- Total net sales of $1.4 billion for fourth quarter, $5.7
billion for the fiscal year 2024
- Combined Adjusted EBITDA of $289.5 million for fourth quarter,
$1.08 billion for the year
- Received $68.6 million in cash dividends from Diamond Green
Diesel in fourth quarter, $179.8 million for fiscal year 2024
Darling Ingredients Inc. (NYSE: DAR) today reported net income
of $101.9 million, or $0.63 per diluted share for the fourth
quarter of 2024, compared to net income of $84.5 million, or $0.52
per diluted share, for the fourth quarter of 2023. The company
continued its focus on operational excellence, which resulted in
gross margin improvement in fourth quarter 2024, compared to third
quarter 2024, despite lower fat prices. The company also reported
total net sales of $1.4 billion for the fourth quarter of 2024,
compared with total net sales of $1.6 billion for the same period a
year ago, reflecting lower finished product pricing.
“Darling Ingredients delivered its strongest quarter of the
year, and delivered some notable milestones,” said Randall C.
Stuewe, Chairman and Chief Executive Officer. “We started up one of
the world’s largest sustainable aviation fuel (SAF) units in Port
Arthur, Texas, which is now debt free, and the joint venture
delivered meaningful dividends throughout the year. We integrated
several acquisitions around the world that position the company
well for future growth adapting to global market dynamics.”
For fiscal year ended Dec. 28, 2024, Darling Ingredients
reported net sales of $5.7 billion, compared to net sales of $6.8
billion for the same period in 2023. Net income for fiscal year
2024 was $278.9 million, or $1.73 per diluted share, as compared to
net income of $647.7 million, or $3.99 per diluted share, for
fiscal year 2023.
DGD sold 293.8 million gallons of renewable diesel for the
fourth quarter 2024 at an average of $0.40 per gallon EBITDA.
Darling Ingredients received $68.6 million in cash dividends from
DGD during the fourth quarter of 2024. For full year 2024, DGD sold
1.25 billion gallons at an average of $0.46 per gallon EBITDA.
Combined Adjusted EBITDA for the fourth quarter of 2024 was
$289.5 million, compared to $350.9 million for the same period in
2023. For fiscal year 2024, Combined Adjusted EBITDA totaled $1.08
billion, as compared to $1.61 billion for the same period in
2023.
As of Dec. 28, 2024, Darling Ingredients had $76.0 million in
cash and cash equivalents, and $1.16 billion available under its
committed revolving credit agreement. Total debt outstanding as of
Dec. 28, 2024, was $4.0 billion. The preliminary leverage ratio as
measured by the company’s bank covenant was 3.93X as of Dec. 28,
2024. Capital expenditures were $73.3 million for the fourth
quarter 2024, and $332.5 million for the year.
“Global raw material volumes remain robust and stronger fat
prices in the first quarter of 2025 should provide lift as pending
tariffs and the Clean Fuel Production Credit provide greater
certainty to the value of domestic feedstocks,” Stuewe said.
“Currently, we expect 2025 to be stronger than 2024, gaining
momentum throughout the year as DGD turnarounds are completed and
SAF sales command a larger percentage of our mix.”
Given fourth quarter 2024 run rates and only one period into the
new year, the company is providing guidance of $1.25 to $1.30
billion Combined Adjusted EBITDA and will provide updates as the
year progresses.
Darling Ingredients Inc. and
Subsidiaries
Consolidated Operating
Results
For the Three and Twelve
Months Ended December 28, 2024 and December 30, 2023
(in thousands, except per share
data)
Three Months Ended
Twelve Months Ended
(unaudited)
(unaudited)
$ Change
(unaudited)
$ Change
December 28,
December 30,
Favorable
December 28,
December 30,
Favorable
2024
2023
(Unfavorable)
2024
2023
(Unfavorable)
Net sales to third parties
$
1,194,900
$
1,226,490
$
(31,590
)
$
4,746,292
$
5,460,259
$
(713,967
)
Net sales to related party - Diamond Green
Diesel
222,793
387,593
(164,800
)
968,883
1,327,821
(358,938
)
Total net sales
1,417,693
1,614,083
(196,390
)
5,715,175
6,788,080
(1,072,905
)
Costs and expenses:
Cost of sales and operating expenses
(excludes depreciation and amortization, shown separately
below)
1,083,931
1,177,652
93,721
4,437,337
5,143,060
705,723
Gain on sale of assets
(4,056
)
(8,282
)
(4,226
)
(4,157
)
(7,421
)
(3,264
)
Selling, general and administrative
expenses
107,514
132,620
25,106
492,105
542,534
50,429
Restructuring and asset impairment
charges
5,794
13,133
7,339
5,794
18,553
12,759
Acquisition and integration costs
2,440
1,726
(714
)
7,842
13,884
6,042
Change in fair value of contingent
consideration
(4,491
)
5,167
9,658
(46,706
)
(7,891
)
38,815
Depreciation and amortization
128,158
137,929
9,771
503,825
502,015
(1,810
)
Total costs and expenses
1,319,290
1,459,945
140,655
5,396,040
6,204,734
808,694
Equity in net income of Diamond Green
Diesel
24,036
4,690
19,346
149,082
366,380
(217,298
)
Operating income
122,439
158,828
(36,389
)
468,217
949,726
(481,509
)
Other expense:
Interest expense
(54,911
)
(68,453
)
13,542
(253,858
)
(259,223
)
5,365
Foreign currency gain/(loss)
(1,669
)
(206
)
(1,463
)
(1,154
)
8,133
(9,287
)
Other income, net
9,486
2,825
6,661
22,309
16,310
5,999
Total other expense
(47,094
)
(65,834
)
18,740
(232,703
)
(234,780
)
2,077
Equity in net income of other
unconsolidated subsidiaries
2,885
1,508
1,377
11,994
5,011
6,983
Income from operations before income
taxes
78,230
94,502
(16,272
)
247,508
719,957
(472,449
)
Income tax expense/(benefit)
(25,547
)
7,246
32,793
(38,337
)
59,568
97,905
Net income
103,777
87,256
16,521
285,845
660,389
(374,544
)
Net income attributable to noncontrolling
interests
(1,869
)
(2,740
)
871
(6,965
)
(12,663
)
5,698
Net income attributable to Darling
$
101,908
$
84,516
$
17,392
$
278,880
$
647,726
$
(368,846
)
Basic income per share:
$
0.64
$
0.53
$
0.11
$
1.75
$
4.05
$
(2.30
)
Diluted income per share:
$
0.63
$
0.52
$
0.11
$
1.73
$
3.99
$
(2.26
)
Number of diluted common shares:
161,071
161,935
161,418
162,387
Segment Financial
Tables (in thousands)
Feed Ingredients
Food Ingredients
Fuel Ingredients
Corporate
Total
Three Months Ended December 28, 2024
(unaudited)
Total net sales
$
924,157
$
361,686
$
131,850
$
—
$
1,417,693
Cost of sales and operating expenses
714,843
268,582
100,506
—
1,083,931
Gross margin
209,314
93,104
31,344
—
333,762
Gain on sale of assets
(1,210
)
(1,550
)
(1,296
)
—
(4,056
)
Selling, general and administrative
expenses
60,497
30,665
7,459
8,893
107,514
Restructuring and asset impairment
charges
3,671
2,123
—
—
5,794
Acquisition and integration costs
—
—
—
2,440
2,440
Change in fair value of contingent
consideration
(4,491
)
—
—
—
(4,491
)
Depreciation and amortization
90,648
26,119
9,189
2,202
128,158
Equity in net income of Diamond Green
Diesel
—
—
24,036
—
24,036
Segment operating income/(loss)
$
60,199
$
35,747
$
40,028
$
(13,535
)
$
122,439
Equity in net income of other
unconsolidated subsidiaries
2,885
—
—
—
2,885
Segment income/(loss)
63,084
35,747
40,028
(13,535
)
125,324
Segment Adjusted EBITDA
(Non-GAAP)
$
150,027
$
63,989
$
25,181
$
(8,893
)
$
230,304
DGD Adjusted EBITDA (Darling's Share)
(Non-GAAP)
—
—
59,159
—
59,159
Combined Adjusted EBITDA
(Non-GAAP)
$
150,027
$
63,989
$
84,340
$
(8,893
)
$
289,463
Reconciliation of Net Income/(loss) to
(Non-GAAP) Segment Adjusted EBITDA and (Non-GAAP) Combined Adjusted
EBITDA:
Net income attributable to Darling
$
63,084
$
35,747
$
40,028
$
(36,951
)
$
101,908
Net income attributable to noncontrolling
interests
1,869
1,869
Income tax benefit
(25,547
)
(25,547
)
Interest expense
54,911
54,911
Foreign currency loss
1,669
1,669
Other income, net
(9,486
)
(9,486
)
Segment income/(loss)
$
63,084
$
35,747
$
40,028
$
(13,535
)
$
125,324
Restructuring and asset impairment
charges
3,671
2,123
—
—
5,794
Acquisition and integration costs
—
—
—
2,440
2,440
Change in fair value of contingent
consideration
(4,491
)
—
—
—
(4,491
)
Depreciation and amortization
90,648
26,119
9,189
2,202
128,158
Equity in net income of Diamond Green
Diesel
—
—
(24,036
)
—
(24,036
)
Equity in net income of other
unconsolidated subsidiaries
(2,885
)
—
—
—
(2,885
)
Segment Adjusted EBITDA
(Non-GAAP)
$
150,027
$
63,989
$
25,181
$
(8,893
)
$
230,304
DGD Adjusted EBITDA (Darling's Share)
(Non-GAAP) *
59,159
59,159
Combined Adjusted EBITDA
(Non-GAAP)
$
150,027
$
63,989
$
84,340
$
(8,893
)
$
289,463
*See reconciliation of DGD Net Income to
(Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated
Statements of Income
Feed Ingredients
Food Ingredients
Fuel Ingredients
Corporate
Total
Three Months Ended December 30, 2023
(unaudited)
Total net sales
$
1,045,642
$
423,836
$
144,605
$
—
$
1,614,083
Cost of sales and operating expenses
755,062
311,163
111,427
—
1,177,652
Gross margin
290,580
112,673
33,178
—
436,431
Loss (gain) on sale of assets
1
(8,243
)
(40
)
—
(8,282
)
Selling, general and administrative
expenses
77,281
30,195
6,714
18,430
132,620
Restructuring and asset impairment
charges
3,934
9,199
—
—
13,133
Acquisition and integration costs
—
—
—
1,726
1,726
Change in fair value of contingent
consideration
5,167
—
—
—
5,167
Depreciation and amortization
98,400
26,655
8,480
4,394
137,929
Equity in net income of Diamond Green
Diesel
—
—
4,690
—
4,690
Segment operating income/(loss)
$
105,797
$
54,867
$
22,714
$
(24,550
)
$
158,828
Equity in net income of other
unconsolidated subsidiaries
1,508
—
—
—
1,508
Segment income/(loss)
$
107,305
$
54,867
$
22,714
$
(24,550
)
$
160,336
Segment Adjusted EBITDA
(Non-GAAP)
$
213,298
$
90,721
$
26,504
$
(18,430
)
$
312,093
DGD Adjusted EBITDA (Darling's Share)
(Non-GAAP)
—
—
38,816
—
38,816
Combined Adjusted EBITDA
(Non-GAAP)
$
213,298
$
90,721
$
65,320
$
(18,430
)
$
350,909
Reconciliation of Net Income/(loss) to
(Non-GAAP) Segment Adjusted EBITDA and (Non-GAAP) Combined Adjusted
EBITDA:
Net income attributable to Darling
$
107,305
$
54,867
$
22,714
$
(100,370
)
$
84,516
Net income attributable to noncontrolling
interests
2,740
2,740
Income tax expense
7,246
7,246
Interest expense
68,453
68,453
Foreign currency loss
206
206
Other income, net
(2,825
)
(2,825
)
Segment income/(loss)
$
107,305
$
54,867
$
22,714
$
(24,550
)
$
160,336
Restructuring and asset impairment
charges
3,934
9,199
—
—
13,133
Acquisition and integration costs
—
—
—
1,726
1,726
Change in fair value of contingent
consideration
5,167
—
—
—
5,167
Depreciation and amortization
98,400
26,655
8,480
4,394
137,929
Equity in net income of Diamond Green
Diesel
—
—
(4,690
)
—
(4,690
)
Equity in net income of other
unconsolidated subsidiaries
(1,508
)
—
—
—
(1,508
)
Segment Adjusted EBITDA
(Non-GAAP)
$
213,298
$
90,721
$
26,504
$
(18,430
)
$
312,093
DGD Adjusted EBITDA (Darling's Share)
(Non-GAAP) *
38,816
38,816
Combined Adjusted EBITDA
(Non-GAAP)
$
213,298
$
90,721
$
65,320
$
(18,430
)
$
350,909
*See reconciliation of DGD Net Income to
(Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated
Statements of Income
Feed Ingredients
Food Ingredients
Fuel Ingredients
Corporate
Total
Twelve Months Ended December 28, 2024
(unaudited)
Total net sales
$
3,675,609
$
1,489,101
$
550,465
$
—
$
5,715,175
Cost of sales and operating expenses
2,886,125
1,115,348
435,864
—
4,437,337
Gross margin
789,484
373,753
114,601
—
1,277,838
Gain on sale of assets
(669
)
(1,758
)
(1,730
)
—
(4,157
)
Selling, general and administrative
expenses
279,095
119,604
32,370
61,036
492,105
Restructuring and asset impairment
charges
3,671
2,123
—
—
5,794
Acquisition and integration costs
—
—
—
7,842
7,842
Change in fair value of contingent
consideration
(46,706
)
—
—
—
(46,706
)
Depreciation and amortization
350,141
109,102
35,876
8,706
503,825
Equity in net income of Diamond Green
Diesel
—
—
149,082
—
149,082
Segment operating income/(loss)
$
203,952
$
144,682
$
197,167
$
(77,584
)
$
468,217
Equity in net income of other
unconsolidated subsidiaries
11,994
—
—
—
11,994
Segment income/(loss)
$
215,946
$
144,682
$
197,167
$
(77,584
)
$
480,211
Segment Adjusted EBITDA
(Non-GAAP)
$
511,058
$
255,907
$
83,961
$
(61,036
)
$
789,890
DGD Adjusted EBITDA (Darling's Share)
(Non-GAAP)
—
—
289,945
—
289,945
Combined Adjusted EBITDA
(Non-GAAP)
$
511,058
$
255,907
$
373,906
$
(61,036
)
$
1,079,835
Reconciliation of Net Income/(loss) to
(Non-GAAP) Segment Adjusted EBITDA and (Non-GAAP) Combined Adjusted
EBITDA:
Net income attributable to Darling
$
215,946
$
144,682
$
197,167
$
(278,915
)
$
278,880
Net income attributable to noncontrolling
interests
6,965
6,965
Income tax benefit
(38,337
)
(38,337
)
Interest expense
253,858
253,858
Foreign currency loss
1,154
1,154
Other income, net
(22,309
)
(22,309
)
Segment income/(loss)
$
215,946
$
144,682
$
197,167
$
(77,584
)
$
480,211
Restructuring and asset impairment
charges
3,671
2,123
—
—
5,794
Acquisition and integration costs
—
—
—
7,842
7,842
Change in fair value of contingent
consideration
(46,706
)
—
—
—
(46,706
)
Depreciation and amortization
350,141
109,102
35,876
8,706
503,825
Equity in net income of Diamond Green
Diesel
—
—
(149,082
)
—
(149,082
)
Equity in net income of other
unconsolidated subsidiaries
(11,994
)
—
—
—
(11,994
)
Segment Adjusted EBITDA
(Non-GAAP)
$
511,058
$
255,907
$
83,961
$
(61,036
)
$
789,890
DGD Adjusted EBITDA (Darling's Share)
(Non-GAAP) *
289,945
289,945
Combined Adjusted EBITDA
(Non-GAAP)
$
511,058
$
255,907
$
373,906
$
(61,036
)
$
1,079,835
*See reconciliation of DGD Net Income to
(Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated
Statements of Income
Feed Ingredients
Food Ingredients
Fuel Ingredients
Corporate
Total
Twelve Months Ended December 30,
2023
Total net sales
$
4,472,592
$
1,752,065
$
563,423
$
—
$
6,788,080
Cost of sales and operating expenses
3,385,859
1,310,581
446,620
—
5,143,060
Gross margin
1,086,733
441,484
116,803
—
1,645,020
Loss (gain) on sale of assets
814
(8,144
)
(91
)
—
(7,421
)
Selling, general and administrative
expenses
310,363
128,464
23,543
80,164
542,534
Restructuring and asset impairment
charges
4,026
14,527
—
—
18,553
Acquisition and integration costs
—
—
—
13,884
13,884
Change in fair value of contingent
consideration
(7,891
)
—
—
—
(7,891
)
Depreciation and amortization
360,249
94,991
34,466
12,309
502,015
Equity in net income of Diamond Green
Diesel
—
—
366,380
—
366,380
Segment operating income/(loss)
$
419,172
$
211,646
$
425,265
$
(106,357
)
$
949,726
Equity in net income of other
unconsolidated subsidiaries
5,011
—
—
—
5,011
Segment income/(loss)
$
424,183
$
211,646
$
425,265
$
(106,357
)
$
954,737
Segment Adjusted EBITDA
(Non-GAAP)
$
775,556
$
321,164
$
93,351
$
(80,164
)
$
1,109,907
DGD Adjusted EBITDA (Darling's Share)
(Non-GAAP)
501,987
501,987
Combined Adjusted EBITDA
(Non-GAAP)
$
775,556
$
321,164
$
595,338
$
(80,164
)
$
1,611,894
Reconciliation of Net Income/(loss) to
(Non-GAAP) Segment Adjusted EBITDA and (Non-GAAP) Combined Adjusted
EBITDA:
Net income attributable to Darling
$
424,183
$
211,646
$
425,265
$
(413,368
)
$
647,726
Net income attributable to noncontrolling
interests
12,663
12,663
Income tax expense
59,568
59,568
Interest expense
259,223
259,223
Foreign currency gain
(8,133
)
(8,133
)
Other income, net
(16,310
)
(16,310
)
Segment income/(loss)
$
424,183
$
211,646
$
425,265
$
(106,357
)
$
954,737
Restructuring and asset impairment
charges
4,026
14,527
—
—
18,553
Acquisition and integration costs
—
—
—
13,884
13,884
Change in fair value of contingent
consideration
(7,891
)
—
—
—
(7,891
)
Depreciation and amortization
360,249
94,991
34,466
12,309
502,015
Equity in net income of Diamond Green
Diesel
—
—
(366,380
)
—
(366,380
)
Equity in net income of other
unconsolidated subsidiaries
(5,011
)
—
—
—
(5,011
)
Segment Adjusted EBITDA
(Non-GAAP)
$
775,556
$
321,164
$
93,351
$
(80,164
)
$
1,109,907
DGD Adjusted EBITDA (Darling's Share)
(Non-GAAP) *
501,987
501,987
Combined Adjusted EBITDA
(Non-GAAP)
$
775,556
$
321,164
$
595,338
$
(80,164
)
$
1,611,894
*See reconciliation of DGD Net Income to
(Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated
Statements of Income
Darling Ingredients Inc. and
Subsidiaries
Balance Sheet
Disclosures
As of December 28, 2024 and
December 30, 2023
(in thousands)
(unaudited)
December 28,
December 30,
2024
2023
Cash and cash equivalents
$
75,973
$
126,502
Property, plant and equipment, net
2,713,669
2,935,185
Current portion of long-term debt
133,020
60,703
Long-term debt, net of current portion
3,908,978
4,366,370
Other Financial Data
As of December 28,
2024
(unaudited)
December 28,
2024
Revolver availability
$
1,159,611
Capital expenditures - YTD
$
332,465
Preliminary Leverage Ratio
3.93x
Diamond Green Diesel Joint
Venture
Consolidated Statements of
Income
For the Three and Twelve
Months Ended December 31, 2024 and December 31, 2023
(in thousands)
Three Months Ended
Twelve Months Ended
(unaudited)
(unaudited)
$ Change
(unaudited)
$ Change
December 31,
December 31,
Favorable
December 31,
December 31,
Favorable
2024
2023
(Unfavorable)
2024
2023
(Unfavorable)
Revenues:
Operating revenues
$
1,245,722
$
1,633,795
$
(388,073
)
$
5,065,592
$
6,990,622
$
(1,925,030
)
Expenses:
Total costs and expenses less lower of
cost or market inventory valuation adjustment and depreciation,
amortization and accretion expense
1,009,285
1,495,293
486,008
4,309,768
5,925,778
1,616,010
Lower of cost or market (LCM) inventory
valuation adjustment
118,120
60,871
(57,249
)
175,934
60,871
(115,063
)
Depreciation, amortization and accretion
expense
69,489
58,881
(10,608
)
264,992
230,921
(34,071
)
Total costs and expenses
1,196,894
1,615,045
418,151
4,750,694
6,217,570
1,466,876
Operating income
48,828
18,750
30,078
314,898
773,052
(458,154
)
Other income
7,778
3,454
4,324
22,114
10,317
11,797
Interest and debt expense, net
(8,301
)
(12,072
)
3,771
(38,673
)
(49,857
)
11,184
Income before income tax expense
48,305
10,132
38,173
298,339
733,512
(435,173
)
Income tax expense
233
752
519
175
752
577
Net income
$
48,072
$
9,380
$
38,692
$
298,164
$
732,760
$
(434,596
)
Reconciliation of DGD Net Income to
(Non-GAAP) DGD Adjusted EBITDA:
Net income
$
48,072
$
9,380
$
298,164
$
732,760
Income tax expense
233
752
175
752
Interest and debt expense, net
8,301
12,072
38,673
49,857
Other income
(7,778
)
(3,454
)
(22,114
)
(10,317
)
Operating income
48,828
18,750
314,898
773,052
Depreciation, amortization and accretion
expense
69,489
58,881
264,992
230,921
DGD Adjusted EBITDA (Non-GAAP)
118,317
77,631
579,890
1,003,973
Darling's Share 50%
50
%
50
%
50
%
50
%
DGD Adjusted EBITDA (Darling's Share)
(Non-GAAP)
$
59,159
$
38,816
$
289,945
$
501,987
Diamond Green Diesel Joint
Venture
Condensed Consolidated Balance
Sheets
December 31, 2024 and December
31, 2023
(in thousands)
December 31,
December 31,
2024
2023
(unaudited)
Assets:
Cash
$
353,446
$
236,794
Total other current assets
1,137,821
1,640,636
Property, plant and equipment, net
3,868,943
3,838,800
Other assets
100,307
89,697
Total assets
$
5,460,517
$
5,805,927
Liabilities and members' equity:
Revolver
$
—
$
250,000
Total other current portion of long term
debt
29,809
28,639
Total other current liabilities
319,688
417,918
Total long term debt
707,158
737,097
Total other long term liabilities
17,195
16,996
Total members' equity
4,386,667
4,355,277
Total liabilities and members'
equity
$
5,460,517
$
5,805,927
Reconciliation of Net Income
to (Non-GAAP) Adjusted EBITDA and (Non-GAAP) Pro forma
Adjusted EBITDA to Foreign
Currency
For the Three and Twelve
Months Ended December 28, 2024 and December 30, 2023
(in thousands)
Three Months Ended
Twelve Months Ended
Adjusted EBITDA
December 28,
December 30,
December 28,
December 30,
(U.S. dollars in thousands)
2024
2023
2024
2023
(unaudited)
(unaudited)
(unaudited)
Net income attributable to Darling
101,908
84,516
278,880
647,726
Depreciation and amortization
128,158
137,929
503,825
502,015
Interest expense
54,911
68,453
253,858
259,223
Income tax expense (benefit)
(25,547
)
7,246
(38,337
)
59,568
Restructuring and asset impairment
charges
5,794
13,133
5,794
18,553
Acquisition and integration costs
2,440
1,726
7,842
13,884
Change in fair value of contingent
consideration
(4,491
)
5,167
(46,706
)
(7,891
)
Foreign currency loss/(gain)
1,669
206
1,154
(8,133
)
Other income, net
(9,486
)
(2,825
)
(22,309
)
(16,310
)
Equity in net income of Diamond Green
Diesel
(24,036
)
(4,690
)
(149,082
)
(366,380
)
Equity in net income of other
unconsolidated subsidiaries
(2,885
)
(1,508
)
(11,994
)
(5,011
)
Net income attributable to noncontrolling
interests
1,869
2,740
6,965
12,663
Adjusted EBITDA (Non-GAAP)
$
230,304
$
312,093
$
789,890
$
1,109,907
Foreign currency exchange impact
1,410
(1
)
—
1,334
(2
)
—
Pro forma Adjusted EBITDA to Foreign
Currency (Non-GAAP)
$
231,714
$
312,093
$
791,224
$
1,109,907
DGD Adjusted EBITDA (Darling's share)
(Non-GAAP)*
$
59,159
$
38,816
$
289,945
$
501,987
Combined Adjusted EBITDA (Non-GAAP)
$
289,463
$
350,909
$
1,079,835
$
1,611,894
*See reconciliation of DGD Net Income to
(Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated
Statements of Income
(1) The average rates for the three months
ended December 28, 2024 were €1.00:$1.07, R$1.00:$0.17 and
C$1.00:$0.72 as compared to the average rates for the three months
ended December 30, 2023 of €1.00:$1.07, R$1.00:$0.20 and
C$1.00:$0.73, respectively.
(2) The average rates for the twelve
months ended December 28, 2024 were €1.00:$1.08, R$1.00:$0.19 and
C$1.00:$0.73 as compared to the average rates for the twelve months
ended December 30, 2023 of €1.00:$1.08, R$1.00:$0.20 and
C$1.00:$0.74, respectively.
About Darling Ingredients
A pioneer in circularity, Darling Ingredients Inc. (NYSE: DAR)
takes material from the animal agriculture and food industries, and
transforms them into valuable ingredients that nourish people, feed
animals and crops, and fuel the world with renewable energy. The
company operates over 260 facilities in more than 15 countries and
processes about 15% of the world’s animal agricultural by-products,
produces about 30% of the world’s collagen (both gelatin and
hydrolyzed collagen), and is one of the largest producers of
renewable energy. To learn more, visit darlingii.com. Follow us on
LinkedIn.
Darling Ingredients will host a conference call at 9 a.m.
Eastern Time (8 a.m. Central Time) on Feb. 6, 2025, to discuss
fourth quarter and fiscal year 2024 financial results, which will
be released earlier that day. At this time, the company will
provide additional details regarding its 2025 outlook. A
presentation accompanying supplemental financial data will also be
available at darlingii.com/investors.
To access the call as a listener, please register for the
audio-only webcast.
To join the call as a participant to ask a question, please
register in advance to receive a confirmation email with the
dial-in number and PIN for immediate access on Feb. 6, or call
833-470-1428 (United States) or 404-975-4839 (international) using
access code 054278.
A replay of the call will be available online via the webcast
registration link two hours after the call ends. A transcript will
be posted at darlingii.com/investors within 24 hours.
Use of Non-GAAP Financial
Measures:
Segment Adjusted EBITDA is
not a recognized accounting measurement under GAAP; it should not
be considered as an alternative to net income/(loss), as a measure
of operating results, or as an alternative to cash flow as a
measure of liquidity. It is presented here not as an alternative to
net income (loss), but rather as a measure of the segment’s
operating performance. Segment Adjusted EBITDA consists of net
income/(loss) plus depreciation and amortization, restructuring and
asset impairment charges, acquisition and integration costs, change
in fair value of contingent consideration, foreign currency
loss/(gain), net income/(loss) attributable to noncontrolling
interests, interest expense, income tax provision, other
income/(expense), equity in net (income)/loss of unconsolidated
subsidiaries and equity in net (income)/loss of Diamond Green
Diesel. Management believes that Segment Adjusted EBITDA is useful
in evaluating the segment’s operating performance because the
calculation of Segment Adjusted EBITDA generally eliminates
non-cash and certain other items for reasons unrelated to overall
operating performance and also believes this information is useful
to investors.
Adjusted EBITDA is not a
recognized accounting measurement under GAAP; it should not be
considered as an alternative to net income, as a measure of
operating results, or as an alternative to cash flow as a measure
of liquidity. It is presented here not as an alternative to net
income, but rather as a measure of the Company's operating
performance. Since EBITDA (generally, net income plus interest
expense, taxes, depreciation and amortization) is not calculated
identically by all companies, the presentation in this report may
not be comparable to EBITDA or Adjusted EBITDA presentations
disclosed by other companies. Adjusted EBITDA is calculated above
and represents for any relevant period, net income/(loss) plus
depreciation and amortization, restructuring and asset impairment
charges, acquisition and integration costs, change in fair value of
contingent consideration, foreign currency loss/(gain), net
income/(loss) attributable to non-controlling interests, interest
expense, income tax provision, other income/(expense) and equity in
net (income)/loss of unconsolidated subsidiaries. Management
believes that Adjusted EBITDA is useful in evaluating the Company's
operating performance compared to that of other companies in its
industry because the calculation of Adjusted EBITDA generally
eliminates the effects of financing, income taxes, non-cash and
certain other items that may vary for different companies for
reasons unrelated to overall operating performance and also
believes this information is useful to investors.
The Company’s management uses Adjusted EBITDA as a measure to
evaluate performance and for other discretionary purposes. In
addition to the foregoing, management also uses or will use
Adjusted EBITDA to measure compliance with certain financial
covenants under the Company’s Senior Secured Credit Facilities, 6%
Notes, 5.25% Notes and 3.625% Notes that were outstanding at
December 28, 2024. However, the amounts shown above for Adjusted
EBITDA differ from the amounts calculated under similarly titled
definitions in the Company’s Senior Secured Credit Facilities, 6%
Notes, 5.25% Notes and 3.625% Notes, as those definitions permit
further adjustments to reflect certain other nonrecurring costs,
non-cash charges and cash dividends from the DGD Joint Venture.
Additionally, the Company evaluates the impact of foreign exchange
on operating cash flow, which is defined as segment operating
income (loss) plus depreciation and amortization.
Pro forma Adjusted EBITDA to Foreign
Currency is not a recognized accounting measurement
under GAAP; it should not be considered as an alternative to net
income, as a measure of operating results, or as an alternative to
cash flow as a measure of liquidity. It is presented here not as an
alternative to net income, but rather as a measure of the Company's
operating performance. Management believes Pro forma Adjusted
EBITDA to Foreign Currency is useful in evaluating the Company’s
operating performance on a constant currency basis and also
believes this information is useful to investors.
Combined Adjusted EBITDA is
not a recognized accounting measurement under GAAP; it should not
be considered as an alternative to net income, as a measure of
operating results, or as an alternative to cash flow as a measure
of liquidity. It is presented here not as an alternative to net
income, but rather as a measure of the Company’s operating
performance. Combined Adjusted EBITDA consists of Adjusted EBITDA
plus DGD Adjusted EBITDA (Darling’s Share). When Combined Adjusted
EBITDA is presented by segment, Combined Adjusted EBITDA consists
of Segment Adjusted EBITDA plus DGD Adjusted EBITDA (Darling’s
Share). Management believes that Combined Adjusted EBITDA is useful
in evaluating the Company's operating performance compared to that
of other companies in its industry because the calculation of
Combined Adjusted EBITDA generally eliminates the effects of
financing, income taxes, non-cash and certain other items that may
vary for different companies for reasons unrelated to overall
operating performance and also believes this information is useful
to investors.
Information reconciling forward-looking Combined Adjusted EBITDA
to net income is unavailable to the Company without unreasonable
effort. The Company is not able to provide reconciliations of
Combined Adjusted EBITDA to net income because certain items
required for such reconciliations are outside of the Company’s
control and/or cannot be reasonably predicted, such as the impact
of volatile commodity prices on the Company’s operations, impact of
foreign currency exchange fluctuations, depreciation and
amortization and the provision for income taxes. Preparation of
such reconciliations for Darling Ingredients Inc. and the Company’s
joint venture, Diamond Green Diesel, would require a
forward-looking balance sheet, statement of operations and
statement of cash flows, prepared in accordance with GAAP for each
entity, and such forward-looking financial statements are
unavailable to the Company without unreasonable effort. The Company
provides guidance for its Combined Adjusted EBITDA outlook that it
believes will be achieved; however, it cannot accurately predict
all the components of the Combined Adjusted EBITDA calculation.
DGD Adjusted EBITDA is not
reflected in the Adjusted EBITDA or the Pro forma Adjusted EBITDA
to Foreign Currency. DGD Adjusted EBITDA is not a recognized
accounting measure under GAAP; it should not be considered as an
alternative to net income/(loss) or equity in net income/(loss) of
Diamond Green Diesel, as a measure of operating results, or as an
alternative to cash flow as a measure of liquidity and is not
intended to be a presentation in accordance with GAAP. The Company
calculates DGD Adjusted EBITDA by taking DGD’s net income/(loss)
plus income tax expense/(benefit), interest and debt expense, net,
and DGD’s depreciation, amortization and accretion expense less
other income. Management believes that DGD Adjusted EBITDA is
useful in evaluating the Company’s operating performance because
the calculation of DGD Adjusted EBITDA generally eliminates
non-cash and certain other items at DGD unrelated to overall
operating performance and also believes this information is useful
to investors. The Company calculates Darling’s Share of DGD
Adjusted EBITDA by taking DGD Adjusted EBITDA and then multiplying
by 50% to get Darling’s Share of DGD’s Adjusted EBITDA.
EBITDA per gallon is not a
recognized accounting measurement under GAAP; it should not be
considered as an alternative to net income or equity in income of
Diamond Green Diesel, as a measure of operating results, or as an
alternative to cash flow as a measure of liquidity and is not
intended to be a presentation in accordance with GAAP. EBITDA per
gallon is presented here not as an alternative to net income or
equity in income of Diamond Green Diesel, but rather as a measure
of Diamond Green Diesel's operating performance. Since EBITDA per
gallon (generally, net income plus interest expense, taxes,
depreciation and amortization divided by total gallons sold) is not
calculated identically by all companies, this presentation may not
be comparable to EBITDA per gallon presentations disclosed by other
companies. Management believes that EBITDA per gallon is useful in
evaluating Diamond Green Diesel's operating performance compared to
that of other companies in its industry because the calculation of
EBITDA per gallon generally eliminates the effects of financing,
income taxes and certain non-cash and other items presented on a
per gallon basis that may vary for different companies for reasons
unrelated to overall operating performance.
Cautionary Statements Regarding
Forward-Looking Information:
This media release includes “forward-looking” statements that
are subject to risks and uncertainties that could cause actual
results to differ materially from those expressed or implied in the
statements. Statements that are not statements of historical facts
are forward-looking statements and are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. Words such as “estimate,” “guidance,” “outlook,”
“project,” “planned,” “contemplate,” “potential,” “possible,”
“proposed,” “intend,” “believe,” “anticipate,” “expect,” “may,”
“will,” “would,” “should,” “could,” and similar expressions are
intended to identify forward-looking statements. All statements
other than statements of historical facts included in this release
are forward-looking statements. Forward-looking statements are
based on the Company's current expectations and assumptions
regarding its business, the economy and other future conditions.
The Company cautions readers that any such forward-looking
statements it makes are not guarantees of future performance and
that actual results may differ materially from anticipated results
or expectations expressed in its forward-looking statements as a
result of a variety of factors, including many that are beyond the
Company's control.
Important factors that could cause actual results to differ
materially from the Company’s expectations include: existing and
unknown future limitations on the ability of the Company's direct
and indirect subsidiaries to make their cash flow available to the
Company for payments on the Company's indebtedness or other
purposes; reduced demands or prices for biofuels, biogases or
renewable electricity; global demands for grain and oilseed
commodities, which have exhibited volatility, and can impact the
cost of feed for cattle, hogs and poultry, thus affecting available
rendering feedstock and selling prices for the Company’s products;
reductions in raw material volumes available to the Company due to
weak margins in the meat production industry as a result of higher
feed costs, reduced consumer demand, reduced volume due to
government regulations affecting animal production or other
factors, reduced volume from food service establishments, or
otherwise; reduced demand for animal feed; reduced finished product
prices, including a decline in fat, used cooking oil, protein or
collagen (including, without limitation, collagen peptides and
gelatin) finished product prices; changes to government policies
around the world relating to renewable fuels and greenhouse gas
(“GHG”) emissions that adversely affect prices, margins or markets
(including for the DGD Joint Venture), including programs like
renewable fuel standards, low carbon fuel standards (“LCFS”),
renewable fuel mandates and tax credits for biofuels, or loss or
diminishment of tax credits due to failure to satisfy any
eligibility requirements, including, without limitation, in
relation to the blender tax credit or the Clean Fuels Production
Credit (“CFPC”); climate related adverse results, including with
respect to the Company’s climate goals, targets or commitments;
possible product recall resulting from developments relating to the
discovery of unauthorized adulterations to food or food additives
or products which do not meet specifications, contract requirements
or regulatory standards; the occurrence of 2009 H1N1 flu (initially
known as “Swine Flu”), highly pathogenic strains of avian influenza
(collectively known as “Bird Flu”), severe acute respiratory
syndrome (“SARS”), bovine spongiform encephalopathy (or “BSE”),
porcine epidemic diarrhea (“PED”) or other diseases associated with
animal origin in the U.S. or elsewhere, such as the outbreak of
African Swine Fever in China and elsewhere; the occurrence of
pandemics, epidemics or disease outbreaks, such as the COVID-19
outbreak; unanticipated costs and/or reductions in raw material
volumes related to the Company’s compliance with the existing or
unforeseen new U.S. or foreign (including, without limitation,
China) regulations (including new or modified animal feed, Bird
Flu, SARS, PED, BSE or ASF or similar or unanticipated regulations)
affecting the industries in which the Company operates or its value
added products; risks associated with the DGD Joint Venture,
including possible unanticipated operating disruptions, a decline
in margins on the products produced by the DGD Joint Venture and
issues relating to the announced SAF upgrade project (including,
without limitation, operational, mechanical, product quality,
market based or other such issues); risks and uncertainties
relating to international sales and operations, including
imposition of tariffs, quotas, trade barriers and other trade
protections by foreign countries; tax changes, such as global
minimum tax measures, or issues related to administration, guidance
and/or regulations associated with biofuel policies, including
CFPC, and risks associated with the qualification and sale of such
credits; difficulties or a significant disruption (including,
without limitation, due to cyber-attack) in the Company’s
information systems, networks or the confidentiality, availability
or integrity of our data or failure to implement new systems and
software successfully; risks relating to possible third-party
claims of intellectual property infringement; increased
contributions to the Company’s pension and benefit plans, including
multiemployer and employer-sponsored defined benefit pension plans
as required by legislation, regulation or other applicable U.S. or
foreign law or resulting from a U.S. mass withdrawal event; bad
debt write-offs; loss of or failure to obtain necessary permits and
registrations; continued or escalated conflict in the Middle East,
North Korea, Ukraine or elsewhere, including the Russia-Ukraine war
and the Israeli-Palestinian conflict and other associated or
emerging conflicts in the Middle East; uncertainty regarding the
exit of the U.K. from the European Union; uncertainty regarding any
administration changes in the U.S. or elsewhere around the world,
including, without limitation, impacts to trade, tariffs and/or
policies impacting the Company (such as biofuel policies and
mandates); and/or unfavorable export or import markets. These
factors, coupled with volatile prices for natural gas and diesel
fuel, inflation rates, climate conditions, currency exchange
fluctuations, general performance of the U.S. and global economies,
disturbances in world financial, credit, commodities and stock
markets, and any decline in consumer confidence and discretionary
spending, including the inability of consumers and companies to
obtain credit due to lack of liquidity in the financial markets,
among others, could cause actual results to vary materially from
the forward-looking statements included in this report or
negatively impact the Company’s results of operations. Among other
things, future profitability may be affected by the Company’s
ability to grow its business, which faces competition from
companies that may have substantially greater resources than the
Company. The Company’s announced share repurchase program may be
suspended or discontinued at any time and purchases of shares under
the program are subject to market conditions and other factors,
which are likely to change from time to time. For more detailed
discussion of these factors and other risks and uncertainties
regarding the Company, its business and the industries in which it
operates, see the Company’s filings with the SEC, including the
Risk Factors discussion in Item 1A of Part I of the Company's
Annual Report on Form 10-K for the fiscal year ended December 30,
2023. The Company cautions readers that all forward-looking
statements speak only as of the date made, and the Company
undertakes no obligation to update any forward-looking statements,
whether as a result of changes in circumstances, new events or
otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250206441697/en/
Darling Ingredients Contacts Investors: Suann
Guthrie Senior VP, Investor Relations, Sustainability &
Communications (469) 214-8202; suann.guthrie@darlingii.com
Media: Jillian Fleming Director, Global Communications
(972) 541-7115; jillian.fleming@darlingii.com
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