Darling Ingredients Inc. · NYSE:DAR
Darling Ingredients — Q1 2022 Earnings Presentation
18 slides from Darling Ingredients's earnings presentation, May 10, 2022
Slide 1: Q1 May 2022 Earnings Report
1 18 Q 1 | M AY 2 0 2 2 EARNINGS REPORT Exhibit 99.2
Slide 2: Safe Harbor Statement
2 18 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 n
Slide 3: Summary Highlights
3 18 Financial Highlights • $330.7 million - Combined adjusted EBITDA • $244.1 million – Record quarter EBITDA for Global Ingredients • $86.6 million, $1.11/gallon EBITDA - Diamond Green Diesel • $17.2 million – Stock repurchased SUMMARY HIGHLIGHTS Diamond Green Diesel (DGD) • 750 million gallons –
Slide 4: Financial Highlights
4 18 Q1-22 EARNINGS Financial Highl ights Darling Financials In millions, except per share Q1-2022 Q1-2021 % variance Net Sales $1,366.3 $1,046.7 30.5% Gross Margin 345.8 273.9 26.2% Gross Margin % 25.3% 26.2% -3.3% Net Income $188.1 $151.8 23.9% EPS Diluted $1.14 $0.90 26.7% Financials In millions
Slide 5: Combined Adjusted EBITDA by Segment
5 18 Q1-22 EARNINGS Financial Highl ights Food 17% Feed 51% Fuel 32% Food Feed Fuel Combined Adjusted EBITDA Q1 2022 % of Total EBITDA by Segment $177 $222 $230 $224 $244 $108 $132 $60 $83 $87 $0 $150 $300 $450 Global Ingredients DGD $284.8 $353.7 $289.6 (In millions) $306.8 Q1-21 Q2-21 Q3-21 Q4-21
Slide 6: Feed Segment Key Drivers
6 18 Q1 - 22 EARNINGS Key Drivers • Raw materials volumes globally increased 3.6% YOY • Margins playing catchup with Euro energy and rising prices • Global meat demand is robust • Restaurant frequenting improving, UCO volume up • Petfood volumes growing with strong pricing • Fat prices continue to e
Slide 7: Food Segment Key Drivers
7 18 Q1 - 22 EARNINGS Key Drivers • Hydrolyzed collagen business on plan and rapidly improving • Supply chain disruptions still impacting continental shipments; raw material pricing improving • Improving edible fat prices driven by energy demand • Strong casing sales and improved contribution Food S
Slide 8: Fuel Segment Key Drivers
8 18 Q1 - 22 EARNINGS Key Drivers • Escalating energy prices in Europe supporting stronger earnings in our green energy business. • Op de Beeck contributing and under expansion • Successful turnaround completed on DGD 1 • DGD margins adjusting to rapidly rising feedstock prices, volatile heating oil
Slide 9: Appendix Additional Information
9 18 APPENDIX ADDITIONAL INFORMATION Q1-22 EARNINGS
Slide 10: California LCFS RIN Value History
10 18 Q1-22 EARNINGS Cal i fornia LCFS RIN Value History
Slide 11: Feed Segment – Historical
11 18 Q1-22 EARNINGS Feed Segment – Historical US$ (in millions) Q1-2021 Q2-2021 Q3-2021 Q4-2021 Total 2021 Q1-2022 Net Sales $ 651.4 $ 771.9 $ 769.6 $ 846.5 $ 3,039.5 $ 879.4 Gross Margin 176.9 215.5 216.0 224.9 833.3 233.9 Gross Margin % 27.1% 27.9% 28.1% 26.6% 27.4% 26.6% Gain on sale of assets (
Slide 12: Food Segment – Historical
12 18 Q1-22 EARNINGS Food Segment – Historical US$ (in millions) Q1-2021 Q2-2021 Q3-2021 Q4-2021 Total 2021 Q1 -2022 Net Sales $ 298.1 $ 317.0 $ 311.9 $ 344.7 $ 1,271.6 $ 354.8 Gross Margin 71.7 78.5 70.5 71.7 292.4 84.5 Gross Margin % 24.0% 24.8% 22.6% 20.8% 23.0% 23.8% Loss/(gain) on sale of asset
Slide 13: Fuel Segment – Historical
13 18 Q1-22 EARNINGS F u e l S e g m e n t – H i s t o r i c a l US$ (in millions) Q1-2021 Q2-2021 Q3-2021 Q4-2021 Total 2021 Q1-2022 Net Sales $ 97.2 $ 109.7 $ 104.4 $ 118.9 $ 430.2 $ 132.0 Gross Margin 25.4 26.6 39.8 24.5 116.3 27.3 Gross Margin % 26.1% 24.2% 38.1% 20.6% 27.0% 20.7% Gain on sale o
Slide 14: Historical Pricing
14 18 Q1-22 EARNINGS Historical Pr ic ing 2022 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 $67.00 $72.03 $75.00 $71.39 Yellow Grease
Slide 15: Adjusted EBITDA
15 18 Q1-22 EARNINGS Adjusted EBITDA Adjusted EBITDA April 2, April 3, (U.S. dollars in thousands) 2022 2021 Net income attributable to Darling 188,053$ 151,766$ Depreciation and amortization 79,246 78,534 Interest expense 15,603 16,428 Income tax expense 26,083 28,708 Restructuring and asset impair
Slide 16: Event Calendar
16 18 BMO Farm to Market Conference May 19 – New York Evercore Clean Energy & Transition Technologies Conference June 14-15 – New York EVENT CALENDAR Q1 – 22 Earnings Roth Capital Partners London Conference June 21-22 – New York Cowen Next Gen Fuel Summit June 16– Virtual
Slide 17: Non-U.S. GAAP Measures
17 18 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
Slide 18: Q1 May 2022 Earnings Report
18 18 Q 1 | M AY 2 0 2 2 EARNINGS REPORT