Darling Ingredients Inc. · NYSE:DAR
Darling Ingredients — Q3 2021 Earnings Presentation
19 slides from Darling Ingredients's earnings presentation, Nov 9, 2021
Slide 1: Third Quarter 2021 Conference Call
Third 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 Third Quarter 2021 Business Update
Summary Highlights Third Quarter 2021 Business Update • Strong third quarter global ingredients EBITDA of $229.6 million • Q3 2021 combined adjusted EBITDA totaled $289.6 million • DGD reported $1.95 EBITDA/gallon, generating $60.0 million EBITDA – Darling’s share • Maintaining 2021 combined adjuste
Slide 4: Financial Highlights
Financial Highlights Financials (in millions, except per share) Q3-2021 Q3-2020 % Variance YTD 2021 YTD 2020 % Variance Net sales $1,185.9 $850.6 39.4% $3,431.3 $2,552.1 34.5% Gross margin 326.3 212.2 53.8% 920.8 634.5 45.1% Gross margin % 27.5% 24.9% 10.4% 26.8% 24.9% 7.6% Net income $146.8 $101.1
Slide 5: Financial Highlights: Segment EBITDA
Financial Highlights Financials (in millions) Q3-2021 Q3-2020 % Variance YTD 2021 YTD 2020 % Variance Segment EBITDA Feed $161.2 $72.3 123.0% $446.2 $227.7 96.0% Food 46.2 41.7 10.8% 145.5 117.4 24.0% Fuel 95.6 117.1 (18.4)% 378.5 322.9 17.2% Corporate (13.4) (12.6) (6.4%) (42.2) (40.9) (3.2%) Total
Slide 6: Feed Segment
Feed Segment Key Drivers: • Higher protein and animal fat prices drove the overall feed segment sales up 59.3% quarter over quarter on slightly higher raw materials processed. Gross margin increased $94.5 million or 77.8% quarter over quarter led by higher commodity prices across all products sold •
Slide 7: Food Segment
Food Segment • Net sales for the food segment grew $20.0 million or 6.9% in Q3 2021 compared to the prior year, driven by higher collagen volume sales and higher edible fat prices. • Segment income improved $10.1 million or was 48.1% higher driven primarily by higher sales. Slightly higher SG&A expe
Slide 8: Fuel Segment
Fuel Segment (Includes Diamond Green Diesel JV consolidated EBITDA) Key Drivers: • Q3-2021 Combined adjusted EBITDA of $95.6 million, with DGD earning $1.95 per gallon on 61.7 million gallons sold • DGD – Norco, LA expansion is running at its operating capacity, ahead of the original plan. The Norco
Slide 9: Port Arthur, TX 470-million-gallon facility
October 2021 Port Arthur, TX 470-million-gallon facility Page 9 | Third Quarter 2021 Financial Results | 11.10.2021
Slide 10: Appendix Additional Information
Appendix Additional Information
Slide 11: California LCFS & RIN value history
California LCFS & RIN value history Source: The Jacobson and StoneX Page 11 | Third Quarter 2021 Financial Results | 11.10.2021 0 50 100 150 200 250 Monthly Average LCFS Carbon Credit Price (USD/MT)
Slide 12: Feed Segment - Historical
Feed Segment - Historical (1) Does not include Unconsolidated Subsidiaries EBITDAPage 12 | Third Quarter 2021 Financial Results | 11.10.2021 US$ (in millions) Q1-2020 Q2-2020 Q3-2020 Q4-2020 Total 2020 Q1-2021 Q2-2021 Q3-2021 Net Sales 512.6$ 503.7$ 483.0$ 572.8$ 2,072.1$ 651.4$ 771.9$ 769.6$ Gross
Slide 13: Historical Pricing
Historical Pricing Jacobson, Wall Street Journal and Thomson Reuters Page 13 | Third Quarter 2021 Financial Results | 11.10.2021 2021 Total Year Avg. Jacobsen Prices January February March Q1Avg. April May June Q2 Avg. July August September Q3 Avg. October November December Q4 Avg. Avg. BFT - Chicag
Slide 14: Food Segment - Historical
Food Segment - Historical Page 14 | Third Quarter 2021 Financial Results | 11.10.2021 US$ (in millions) Q1-2020 Q2-2020 Q3-2020 Q4-2020 Total 2020 Q1-2021 Q2-2021 Q3-2021 Net Sales 270.3$ 278.9$ 291.8$ 344.6$ 1,185.7$ 298.1$ 317.0$ 311.9$ Gross Margin 64.9 58.8 65.1 76.3 265.0 71.7 78.5 70.5 Gross M
Slide 15: 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 15 | Third Quarter 2021 Financial Results | 11.10.2021 Diamond Green Diesel (50% Joint Venture) US$ and gallons (in millions) Q1
Slide 16: 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 17: Adjusted EBITDA
Adjusted EBITDA Page 17 | Third Quarter 2021 Financial Results | 11.10.2021 Adjusted EBITDA October 2, September 26, October 2, September 26, (U.S. dollars in thousands) 2021 2020 2021 2020 Net income attributable to Darl ing 146,812$ 101,125$ 495,160$ 252,074$ Depreciation and amortization 77,826 8
Slide 18: Upcoming IR Events
Upcoming IR Events • Stephens Investment Conference – 12-02-21 • BMO ESG Virtual Conference – 12-07-21 • Goldman Sachs Global Energy and Clean Technology Conference – 01-05-22 Page 18 | Third Quarter 2021 Financial Results | 11.10.2021
Slide 19: We create solutions that sustain life
WE CREATE SOLUTIONS THAT SUSTAIN LIFE 4 WEARE.DARLINGIICOM HEALTH « NUTRIENTS 4 BIOENERGY « SERVICES DARLING INGREDIENTS