Darling Ingredients Inc. · NYSE:DAR
Darling Ingredients — Q1 2021 Earnings Presentation
20 slides from Darling Ingredients's earnings presentation, May 11, 2021
Slide 1: First Quarter 2021 Conference Call
First Quarter 2021 Conference Call Exhibit 99.2
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains “forward-looking” statements that are subject to risks and uncertainties that could cause the actual results of Darling Ingredients Inc. (the “Company”) to differ materially from those expressed or implied in the statements. Statements that are not st
Slide 3: Summary Highlights First Quarter 2021 Business Update
Summary Highlights First Quarter 2021 Business Update • Record first quarter global ingredients EBITDA of $176.6 million • Q1 2021 combined adjusted EBITDA totaled a record $284.8 million • Substantial growth in net income increasing $66.3 million or 77.5% for Q1 2021 when compared to the prior year
Slide 4: Financial Highlights
Financial Highlights Financials (in millions, except per share data) Q1-2021 Q1-2020 % Variance Net sales $1,046.7 $852.8 22.7% Gross margin 273.9 205.9 33.0% Gross margin % 26.2% 24.1% 8.7% Net income $151.8 $85.5 77.5% EPS diluted $0.90 $0.51 76.5% $110 $126 $122 $146 $177 $104 $69 $96 $68 $108 $0
Slide 5: Financial Highlights: Segment EBITDA and 2021 Guidance
Financial Highlights Financials (in millions) Q1-2021 Q1-2020 % Variance Segment EBITDA Feed $124.4 $70.2 77.2% Food 46.4 39.4 17.8% Fuel 128.7 118.8 8.4% Corporate (14.7) (15.1) 2.6% Total Combined adjusted EBITDA $284.8 $213.3 33.5% Feed 42% Food 15% Fuel 43% Q1 2021 % of Total EBITDA by Segment (
Slide 6: Feed Segment
Feed Segment Key Drivers: • Higher protein and animal fat prices drove the overall feed segment sales up 27.1% quarter over quarter on flat raw materials processed. Gross margin increased $52.7 million or 42.4% quarter over quarter led by higher commodity prices across all products sold. • UCO volum
Slide 7: Food Segment
Food Segment • Net sales for the food segment grew $27.8 million or 10.3% in Q1 2021 compared to the prior year, driven by higher collagen volume sales and higher edible fat prices. • Segment income improved $12.4 million or was 65.2% higher driven by higher sales and by a reduction of depreciation
Slide 8: Fuel Segment
Fuel Segment (Includes Diamond Green Diesel JV consolidated EBITDA) Key Drivers: • Q1-2021 Combined adjusted EBITDA of $128.7 million, with DGD earning $2.77 per gallon on 78.0 million gallons sold • Fuel segment incurred $778,000 of additional restructuring charges related primarily to severance ex
Slide 9: 400-million-gallon expansion, Norco
April 2021 400-million-gallon expansion Existing 290-million-gallon plant Page 9 | First Quarter 2021 Financial Results | 05.12.2021
Slide 10: Port Arthur, TX 470-million-gallon facility
April 2021 Port Arthur, TX 470-million-gallon facility Page 10 | First Quarter 2021 Financial Results | 05.12.2021
Slide 11: Appendix Additional Information
Appendix Additional Information
Slide 12: California LCFS & RIN value history
California LCFS & RIN value history Source: The Jacobson and StoneX Page 12 | First Quarter 2021 Financial Results | 05.12.2021 $0 $50 $100 $150 $200 $250 1 / 1 / 2 0 1 6 4 / 1 / 2 0 1 6 7 / 1 / 2 0 1 6 1 0 / 1 / 2 0 1 6 1 / 1 / 2 0 1 7 4 / 1 / 2 0 1 7 7 / 1 / 2 0 1 7 1 0 / 1 / 2 0 1 7 1 / 1 / 2 0 1
Slide 13: Feed Segment - Historical
Feed Segment - Historical (1) Does not include Unconsolidated Subsidiaries EBITDAPage 13 | First Quarter 2021 Financial Results | 05.12.2021 US$ (in millions) Q1-2019 Q2-2019 Q3-2019 Q4-2019 Total 2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Total 2020 Q1-2021 Net Sales 495.8$ 487.4$ 497.0$ 490.4$ 1,970.6$
Slide 14: Historical Pricing
Historical Pricing Jacobson, Wall Street Journal and Thomson Reuters Page 14 | First Quarter 2021 Financial Results | 05.12.2021 2021 Avg. Jacobsen Prices January February March Q1Avg. April May June Q2 Avg. July August September Q3 Avg. October November December Q4 Avg. BFT - Chicago Renderer / cwt
Slide 15: Food Segment - Historical
Food Segment - Historical (1) Adjusted for the $13.1 million gain on the asset sale in China for Q2-19 and FY-19 Page 15 | First Quarter 2021 Financial Results | 05.12.2021 US$ (in millions) Q1-2019 Q2-2019 Q3-2019 Q4-2019 Total 2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Total 2020 Q1-2021 Net Sales 279.2
Slide 16: Fuel Segment - Historical
Fuel Segment - Historical (1) Includes Fuel Segment EBITDA and Darling's share of DGD EBITDA. * Excludes feed stock (raw material) processed at the DGD joint venture. Page 16 | First Quarter 2021 Financial Results | 05.12.2021 Diamond Green Diesel (50% Joint Venture) US$ and gallons (in millions) Q1
Slide 17: Non-U.S. GAAP Measures
Non-U.S. GAAP Measures 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 and is not intended to be a presentation in accord
Slide 18: Adjusted EBITDA
Adjusted EBITDA Page 18 | First Quarter 2021 Financial Results | 05.12.2021 Adjusted EBITDA April 3, March 28, (U.S. dollars in thousands) 2021 2020 Net income attributable to Darl ing 151,766$ 85,510$ Depreciation and amortization 78,534 84,671 Interest expense 16,428 19,090 Income tax expense 28,7
Slide 19: Upcoming IR Events
Upcoming IR Events • BMO FTM Conference- 5.19.21 • Baird Global Consumer Conference– 6.08.21 • Tudor, Pickering Holt Hotter ‘N Hell Conference – 6.10.21 • Roth Capital Virtual London Conference – 6.22.21 Page 19 | First Quarter 2021 Financial Results | 05.12.2021
Slide 20: We Create Solutions That Sustain Life
WE CREATE SOLUTIONS THAT SUSTAIN LIFE 4 WEARE.DARLINGIICOM HEALTH « NUTRIENTS 4 BIOENERGY « SERVICES DARLING INGREDIENTS