Slide 1: Earnings Report Q3 | November 7, 2023
Earnings Report Q3 | November 7, 2023
Slide 2: Safe Harbor Statement
Safe Harbor Statement The 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
Slide 3: Q3 2023 Business Highlights
Q3 2023 Business Highlights Financial Performance Q3 – 2023 Net Sales $1,625.2 million Net Income $125.0 million EPS Diluted $0.77 Combined Adjusted EBITDA $334.3 million Global Ingredients EBITDA $247.8 million Feed Ingredients EBITDA $161.7 million Food Ingredients EBITDA $86.0 million Fuel Ingred
Slide 4: Q3 2023 Earnings
Q3 2023 Earnings In millions, except % YTD YTD % Balance Sheet Q3-2023 Q3-2022 per share variance 2023 2022 variance As of As of Net Sales $1,625.2 $1,747.6 (7.0%) $5,174.0 $4,764.1 8.6% In millions, except ratio data 9/30/2023 12/31/2022 Gross Margin $386.5 $376.4 2.7% $1,208.6 $1,140.8 5.9% Cash (
Slide 5: EBITDA
EBITDA Combined Adjusted EBITDA Q3 2023 % of Total EBITDA by Segment (In millions) $508.3 $500 $450 $418.4 $413.0 $402.6 $394.7 Fuel 30% $400 $247 $350 $91 $129 $334.3 $330.7 $120 $146 Feed $300 $87 $86 46% Food $250 24% $200 $150 $312 $274 $289 $267 $261 $248 $244 $100 $50 $0 Q1 2022 Q2 2022 Q3 202
Slide 6: Feed Segment
Feed Segment US $ (in millions) Q3-2023 Q3-2022 YTD-2023 YTD-2022 Net Sales $ 1,047,796 $ 1,273,142 $ 3,426,950 $ 3,322,927 Key Drivers Cost of sales & operating expenses 804,312 1,012,899 2,630,797 2,522,728 Gross Margin $ 243,484 $ 260,243 $ 796,153 $ 800,199 • Gross margin management reflects suc
Slide 7: Feed Segment
Feed Segment US $ (in millions, unaudited) Fats Proteins Other Total Rendering Used Cooking Oil Bakery Other Total Net Sales Three Months Ended Oct. 1, 2022 $ 543.3 $ 413.8 $ 51.1 $ 1,008.2 $ 163.6 $ 84.8 $ 16.5 $ 1,273.1 Increase/(Decrease) in sales volumes (31.9) (13.2) - (45.1) 20.3 (8.2) - (33.0
Slide 8: Food Segment
Food Segment Key Drivers US $ (in millions) Q3-2023 Q3-2022 YTD-2023 YTD-2022 • Raw material increase of 18.3% due to Net Sales $ 455,744 $ 347,902 $ 1,328,229 $ 1,071,897 Cost of sales & operating expenses 338,208 256,557 999,418 807,833 Gelnex acquisition Gross Margin $ 117,536 $ 91,345 $ 328,811
Slide 9: Food Segment
Food Segment Q3 2023 % of Sales Breakdown Food Segment Trailing 4Q adjusted EBITDA $300 $280 $260 $240 $220 85% $200 9% $180 $160 $140 $120 6% $100 Collagen Edible fats Other products Trailing 4 Q's Q3 – 23 9
Slide 10: Fuel Segment
Fuel Segment US $ (in millions) Q3-2023 Q3-2022 YTD-2023 YTD-2022 Net Sales $ 121,664 $ 126,555 $ 418,818 $ 369,297 Cost of sales & operating expenses 96,213 101,781 335,193 292,760 Key Drivers Gross Margin $ 25,451 $ 24,774 $ 83,625 $ 76,537 • $62.2 million in cash dividends received from Diamond G
Slide 11: Fuel Segment
Fuel Segment Quarterly Avg. Prices D4 RINs (1.7 Multiple) & Yellow Grease - IL $0.70 $3.50 Diamond Green Diesel $0.60 $3.00 US $ and gallons (in millions) Q3 2023 Q3 2022 YTD-2023 YTD-2022 $0.50 $2.50 Pro forma Adjusted EBITDA $0.40 $2.00 $86.5 $120.3 $463.2 $297.5 (Darling’s share) $0.30 $1.50 Tota
Slide 12: Appendix: Additional Information
APPENDIX ADDITIONAL INFORMATION APPENDIX Appendix ADDITIONAL INFORMATION
Slide 13: Feed Segment – Historical
Feed Segment – Historical US$ (in millions) Q1-2022 Q2-2022 Q3-2022 Q4-2022 Total 2022 Q1-2023 Q2-2023 Q3-2023 Net Sales $ 879.4 $ 1,170.3 $ 1,273.1 $ 1,216.1 $ 4,539.0 $ 1,237.5 $ 1,141.7 $1,047.8 Gross Margin 233.9 306.0 260.2 265.3 1,065.5 287.4 265.2 243.5 Gross Margin % 26.6% 26.1% 20.4% 21.8%
Slide 14: Food Segment – Historical
Food Segment – Historical US$ (in millions) Q1 -2022 Q2-2022 Q3-2022 Q4-2022 Total 2022 Q1-2023 Q2-2023 Q3-2023 Net Sales $ 354.8 $ 369.2 $ 347.9 $ 387.7 $ 1,459.6 $ 396.4 $ 476.1 $ 455.7 Gross Margin 84.5 88.2 91.3 93.3 357.4 106.3 105.0 117.5 Gross Margin % 23.8% 23.9% 26.3% 24.1% 24.5% 26.8% 22.1
Slide 15: Fuel Segment – Historical
Fuel Segment – Historical US$ (in millions) Q1-2022 Q2-2022 Q3-2022 Q4-2022 Total 2022 Q1-2023 Q2-2023 Q3-2023 Net Sales $ 132.0 $ 110.7 $ 126.6 $ 164.3 $ 533.6 $ 157.3 $ 139.9 $ 121.7 Gross Margin 27.3 24.4 24.8 30.2 106.7 30.5 27.7 25.5 Gross Margin % 20.7% 22.1% 19.6% 18.4% 20.0% 19.4% 19.8% 20.9
Slide 16: Historical Pricing
Historical Pricing 2023 Finished Product Pricing 2023 Average Jacobsen Prices (USD) Feed Segment Ingredi ents 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 $68.00 $60.92 $55.80 $61.39
Slide 17: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to (Non-GAAP) Adjusted EBITDA and (Non-GAAP) Pro-Forma Adjusted EBITDA to Foreign Currency For the Three and Nine Months Ended September 30, 2023 and October 1, 2022 (in thousands) Three Months Ended Nine Months Ended (unaudited) (unaudited) Adjusted EBITDA September 30,
Slide 18: 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. It is presented here not as an alternative to net
Slide 19: Earnings Report Q3 | November 7, 2023
EARNINGS REPORT Q3 | November 7, 2023