Darling Ingredients Inc. · NYSE:DAR
Darling Ingredients — Q1 2024 Earnings Presentation
20 slides from Darling Ingredients's earnings presentation, Apr 25, 2024
Slide 1: Financial Results Q1 2024
DARLING INGREDIENTS Financial Results Q1 2024 April 25, 2024
Slide 2: Forward-looking statements
This presentation 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 ma
Slide 3: Q1 2024 Business Highlights
Q1 2024 Business Highlights incites Financial Performance Net Sales Net Income EPS Diluted Combined Adjusted EBITDA Feed Ingredients EBITDA Food Ingredients EBITDA Fuel Ingredients EBITDA Q1 2024 $1,420.3 million $81.2 million $0.50 $280.1 million $106.8 million $61.7 million $133.1 million DAR LING
Slide 4: Q1 2024 Earnings
Q1 2024 Earnings (nauies Net Sales $1.4203 $1712 (207%) coe ians 53036 s4a4a (20%) — BalanceSheet Gross Margin % 214% 237% (97%) 7 “oe fost Reali eas So aa ex) In millions, except ratio data Seam 42/30/2023 EPS Diluted $0.50 S14 (66.1%) Cash and cash equivalents $1455 $1265 Revolver availability Sei
Slide 5: Combined Adjusted EBITDA by quarter
$330.6 $402.6 $394.7 $413.0 $418.4 $508.3 $334.0 $350.9 $280.1 0 100 200 300 400 500 600 Q122 Q222 Q323 Q422 Q123 Q223 Q323 Q423 Q124 Global Ingredients DGD Feed Food Fuel
Slide 6: Feed Segment
Feed Segment * Global raw material volumes remain strong * Global fat prices slowly improving — Imported waste fats now a premium to N. American fats — Palm and soy oil are premium to waste fats - Clearly RD capacity not on-line or capable of pre- treatment * Global premium pet food markets improvin
Slide 7: Food Segment
Food Segment * Rousselot sales volumes robust * Segment revenue lower due to decline in selling price however, margins remain solid given lower raw material input prices * $25 million out-of-period inventory adjustment impacted EBITDA * Identified collagen peptide profiles for targeted health benefi
Slide 8: Continued growth driven by collagen peptides
Continued growth driven by collagen peptides Food Segment EBITDA (millions) $350 $321.2 $300 $2567 $250 $200 $194.9 $167.1 $157.1 150 ° $129.7 il $100 ii 2018 2019 2020 2021 2022 2023
Slide 9: Fuel Segment
Fuel Segment Lower feedstock prices improved earnings sequentially, but supply chain still is slightly above market RINS and LCFS were weaker, and a lower of cost-or-market valuation adjustment impacted DGD earnings Margin outlook remains favorable due to lower fat prices, competitive advantage, opt
Slide 10: Fuel Segment: Diamond Green Diesel
Fuel Segment Diamond Green Diesel (unaudited) US § and gallons (in millions) 12024 Pro forma Adjusted EBITDA (Darling's 5164 share) Total gallons produced 335.4 Total gallons sold/shipped 3315 EBITDA per gallon sold/shipped $0.69 Excluding $21.6 million lower of cost-or-market valuation adjustment a
Slide 11: Appendix
Slide 12: California LCFS and RIN Value History
California LCFS and RIN Value History $250 $200 $150 $100 $50 $0 11/2019 4/1/2019 72019 Monthly Average LCFS Carbon Credit Price (USD/MT) 10/1/2019 11/2020 4/1/2020 7112020 10/1/2020 wv2021 4sv2021 712021 10/1/2021 1/2022 41112022 7192022 10/1/2022 112023 4/1/2023 71912023 10/1/2023 VI2024 200 150 P
Slide 13: Feed Segment — Historical
Feed Segment — Historical (nausites Net Sales. 1,237.5 Gross Margin 287.4 Gross Margin % 23.2% Loss (Gain) on sale of assets 03) SG&A TAT SG&A Margin % 6.0% Operating Income 1227 Adj. EBITDA S$. 215.1 Adj. EBITDA Margin % 17.2% Raw Material Processed (mmts) 3.2 $ 5 1,141.7 265.2 23.2% 03 714 6.8% N2
Slide 14: Feed Segment
Feed Segment US $ (in millions, unaudited) Fats Proteins Other Total Rendering Used Cooking Oil Bakery Other Total Net Sales Three Months Ended April 1, 2023 $ 4903 S 447.2 Ss 69.8 $ 1,007.3 $ B77 $ 749 $ 17.6 $ 12375 Decrease in sales volumes (16.4) (46) 4 (21.0) (2.0) (6.2) | (29.2) Decrease in fi
Slide 15: Food Segment — Historical
Food Segment = Historical (ruites Net Sales $ 3964 $ 476: $ 4557 $ 4238 $ 17524 $3913 fetiesorelte IA 1063 105.0 175 1127 4415 93.4 fice Marcin 26.8% 22.1% 25.8% 26.6% 25.2% 23.8% Loss (gain) on sale of assets 0) aa 4 fe} Hy os Bese 334 337 318 30.2 1285 37 cea Margin 2) 8.4% 7.1% 69% 71% 73% 81% Op
Slide 16: Fuel Segment — Historical
Fuel Segment — Historical inaxies Uso) chases ates ana toltes ont Net Sales $ 1573 $ 1399 $ 1217 144.6 $ 5634 $ 139.2 Gross Margin 30.5 277 25.5 33.2 68 264 Gross Margin % 19.4% 19.8% 20.9% 23.0% 20.7% 19.0% Loss (gain) on sale of assets, (0.0) (OD) (0.0) (0.0) (0.1) (0.4) SG&A 62 5.0 57 67 235 87 D
Slide 17: 2024 Finished Product Pricing
2024 Finished Product Pricing Feed Segment Ingredients January February March Q1 Avg. April May June Q2 Avg. July August Sept. Q3 Avg. Oct. Nov. Dec. Q4 Avg. Year Avg. Bleachable Fancy Tallow - Chicago Renderer / cwt $43.43 $42.04 $44.26 $43.25 Yellow Grease - Illinois / cwt $31.60 $31.50 $32.05 $31
Slide 18: Adjusted EBITDA
Adjusted EBITDA March 30, April 1, (U.S. dollars in thousands) 2024 2023 Net income attributable to Darling 81,157$ 185,801$ Depreciation and amortization 127,509 116,006 Interest expense 62,876 50,299 Income tax expense 3,907 26,974 Restructuring and asset impairment charges - 4,524 Acquisition and
Slide 19: Non-U.S. GAAP Measures
Non-US: GAAP. Meastires 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 ne
Slide 20: Financial Results Q1 2024
inancial Results — Qi 2024 j April 25, 2024