Darling Ingredients' waste fats and oils shine in Q2

09 Aug 2023 --- US-based Darling Ingredients has reported rising net sales of US$1.8 billion for the second financial quarter, up from US$1.7 billion in the same period the previous year. Its integrated waste fats and oils division was mainly in focus during that period.

“Fat prices decreased quarter over quarter, which demonstrated how beneficial that can be for our fuel segment. The power of our integrated waste fats and oils business combined with best-in-class renewable diesel production was clearly on display this last quarter,” says Randall Stuewe, chairman and CEO at Darling Ingredients. 

The company’s net income stands at US$252 million, up from US$202 million for the same period the previous year. The combined adjusted earnings before tax, interest and depreciation (EBITDA) is reported at US$508 million, with the global ingredients business EBITDA at US$260.9 million.

Renewables and repurchased stock
The combined adjusted EBITDA on a year-to-date basis totaled US$927 million compared with US$733 million for the same period the previous year. The acquisition of Brazilian bovine collagen producer Gelnex cost the company US$19 million, impacting the overall earnings. 

The two companies entered into a definitive agreement wherein the acquirer will purchase all of the shares of Gelnex for approximately US$1.2 billion. The acquisition is subject to all standard regulatory approvals and was completed in Q1 of 2023.

Darling Ingredients repurchased 153,000 shares of common stock valued at US$9 million. 

Approximately 926,000 shares in stock have been repurchased for US$52.9 million, since the start of the year, leaving about US$321.6 million under the board’s share repurchase program.  

Capital expenditure
Darling Ingredients’ net sales for the first six months of the year stand at US$3.5 billion, compared to US$3 billion for the same period in 2022. The net income for that period was US$438.2 million compared with US$390 the previous year.

The company’s debt is US$4.5 billion, and reports US$123 million in capital expenditures. Darling Ingredients reaffirms guidance for the fiscal year 2023 at $1.88 billion combined adjusted EBITDA.

Edited by Inga de Jong