Darling Ingredients Inc. · NYSE:DAR
Darling Ingredients — Q1 2025 Earnings Presentation
23 slides from Darling Ingredients's earnings presentation, Apr 24, 2025
Slide 1: Financial Results Q1 2025
Financial Results Q1 2025 April 24, 2025
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 2025 Financial Highlights (unaudited)
Q1 2025 Financial Highlights (unaudited) Total Net Sales $1,380.6 million Net Loss $(26.2) million EPS Diluted $(0.16) Debt Paydown $146.2 million Diamond Green Diesel $129.5 million Dividends Received Common Stock Repurchased $35 million Combined Adjusted EBITDA* $195.8 million Segment Combined Adj
Slide 4: Q1 2025 Earnings
Q1 2025 Earnings In millions, Q1-2025* Q1-2024* % variance except per share Balance Sheet Total Net Sales $1,380.6 $1,420.3 (2.8%) In millions, except ratio As of As of Gross Margin $311.4 $303.6 2.6% Gross Margin % 22.6% 21.4% 5.6% data 3/29/2025* 12/28/2024 Net Income/(Loss) ($26.2) $81.2 (132.3%)
Slide 5: Combined Adjusted EBITDA
Combined Adjusted EBITDA (in millions, unaudited) Q1 2025 % of Total Combined Adjusted Combined Adjusted EBITDA EBITDA by Segment 350 300 $289.5 $280.1 $273.6 11.8% 250 $236.7 $195.8 200 150 34.5% 53.7% 100 50 0 1Q24 2Q24 3Q24 4Q24 1Q25 Global Ingredients DGD Feed Food Fuel 5
Slide 6: Feed Segment
Feed Segment US$ (in thousands) Q1 2025* Q1 2024* • Global raw material volumes are steady and expected to improve Total net sales $ 896,283 $ 889,848 Cost of sales and operating expenses 714,015 705,769 Gross margin 182,268 184,079 • Higher fat pricing flowed through in March, and continues to impr
Slide 7: Feed Segment Reconciliation
Feed Segment Reconciliation of Net Income/(Loss) to (Non-GAAP) Segment Adjusted EBITDA US $ (in thousands) Q1 2025* Q1 2024* Segment income** $ 23,639 $ 46,799 Change in fair value of contingent consideration 5,441 (25,249) Depreciation and amortization 84,130 87,569 Equity in net income of other un
Slide 8: Food Segment
Food Segment US $ (in thousands) Q1 2025* Q1 2024* • Collagen peptides have regained strength, Total net sales $ 349,240 $ 391,282 Cost of sales and operating expenses 246,781 298,145 and demand for Darling Ingredients’ library of Gross margin 102,459 93,137 collagen products is strong (Gain)/Loss o
Slide 9: Food Segment Reconciliation
Food Segment Reconciliation of Net Income/(Loss) to (Non-GAAP) Segment Adjusted EBITDA US $ (in thousands) Q1 2025* Q1 2024* Segment income** $ 41,370 $ 32,819 Depreciation and amortization 29,562 28,868 Segment Adjusted EBITDA (Non-GAAP) $ 70,932 $ 61,687 *Unaudited ** When presented by Segment, no
Slide 10: Fuel Segment
Fuel Segment US $ (in thousands) Q1 2025* Q1 2024* • $129.5 million in cash dividends from Diamond Total net sales $ 135,071 $ 139,169 Green Diesel Cost of sales and operating expenses 108,447 112,752 Gross margin 26,624 26,417 • Transitioned from the blender’s tax credit to the Gain on sale of asse
Slide 11: Fuel Segment Reconciliation
Fuel Segment Reconciliation of Net Income/(Loss) to (Non-GAAP) Segment Adjusted EBITDA US $ (in thousands) Q1 2025* Q1 2004* Segment income** $ (20,921) $ 87,836 Depreciation and amortization 8,589 8,667 Equity in net (income)/loss of Diamond Green Diesel 30,523 (78,419) Segment Adjusted EBITDA (Non
Slide 12: Fuel Segment: Diamond Green Diesel
Fuel Segment Quarterly Avg. Prices D4 RINs (1.7 Multiple) & Yellow Grease - IL Diamond Green Diesel (unaudited) $0.70 $3.50 $0.60 $3.00 US $ and gallons (in millions) Q1 2025 Q1 2024 $0.50 $2.50 Pro forma Adjusted EBITDA (Darling’s $0.40 $2.00 $6.0 $115.1 share) $0.30 $1.50 $0.20 $1.00 Total gallons
Slide 13: Appendix
Appendix 13
Slide 14: California LCFS and RIN Value History
California LCFS and RIN Value History Monthly Average LCFS Carbon Credit Price (USD/MT) Biofuel RIN Values (cents/RIN) Source: Argus $250 250 $200 200 $150 150 $100 100 $50 50 $0 0 2021 2022 2023 2024 2025 6/1/2021 9/1/2021 6/1/2022 9/1/2022 6/1/2023 9/1/2023 6/1/2024 9/1/2024 12/1/2021 12/1/2022 12
Slide 15: Feed Segment – Historical
Feed Segment – Historical (unaudited) Total US$ (in millions) Q1-2024 Q2-2024 Q3-2024 Q4-2024 2024 Q1-2025 Total Net Sales $ 889.8 $ 934.1 $ 927.5 $ 924.2 $ 3,675.6 $ 896.3 Gross Margin 184.1 196.3 199.8 209.3 789.5 182.3 Gross Margin % 20.7% 21.0% 21.5% 22.6% 21.5% 20.3% Loss (Gain) on sale of asse
Slide 16: Feed Segment Sales
Feed Segment Sales (unaudited) US $ (in millions) Fats Proteins Other Total Rendering Used Cooking Oils Bakery Other Total Net sales three months ended March 30, 2024 $ 311.2 $ 367.6 $ 76.7 $ 755.5 $ 75.8 $ 44.9 $ 13.6 $ 889.8 Increase/(decrease) in sales volumes (7.6) 2.4 - (5.2) (0.4) (2.2) - (7.8
Slide 17: Food Segment – Historical
Food Segment – Historical (unaudited) Total US$ (in millions) Q1-2024 Q2-2024 Q3-2024 Q4-2024 2024 Q1-2025 Total Net Sales $ 391.3 $ 378.8 $ 357.3 $ 361.7 $ 1,489.1 $ 349.2 Gross Margin 93.1 102.1 85.4 93.1 373.8 102.5 Gross Margin % 23.8% 26.9% 23.9% 25.7% 25.1% 29.3% Loss (gain) on sale of assets
Slide 18: Fuel Segment – Historical
Fuel Segment – Historical (unaudited) Total US$ (in millions) Q1-2024 Q2-2024 Q3-2024 Q4-2024 2024 Q1-2025 Total Net Sales $ 139.2 $ 142.3 $ 137.1 $ 131.9 $ 550.5 $ 135.1 Gross Margin 26.4 28.5 28.3 31.3 114.6 26.6 Gross Margin % 19.0% 20.0% 20.7% 23.8% 20.8% 19.7% Loss (gain) on sale of assets (0.4
Slide 19: Historical Pricing
Historical Pricing 2025 Finished Product Pricing 2025 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. Yellow Grease - Illinois / cwt $33.50 $34.39 $34.50 $34.13 Used Cooking Oil (
Slide 20: Reconciliation of Net Income to Combined Adjusted EBITDA
Reconciliation of Net Income (Non-GAAP) Adjusted EBITDA to (Non-GAAP) Pro-Forma Adjusted EBITDA to Foreign Currency and to (Non-GAAP) Combined Adjusted EBITDA For the Three Months Ended March 29, 2025 and March 30, 2024 (in thousands, unaudited) Three Months Ended Adjusted EBITDA March 29, March 30,
Slide 21: Non-U.S. GAAP Measures
Non-U.S. GAAP Measures Segment Adjusted EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income/(loss), 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 alt
Slide 22: Non-U.S. GAAP Measures (cont.)
Non-U.S. GAAP Measures (cont.) Combined 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 a
Slide 23: Financial Results Q1 2025
Financial Results Q1 2025 April 24, 2025