Darling Ingredients Inc. released its financial results for the fourth quarter of 2023, reporting a net income of $84.5 million, or $0.52 per diluted share. This marks a decline from the same period in 2022, where the company recorded a net income of $156.6 million, or $0.96 per diluted share. The decrease in net income is primarily attributed to a reduction in Darling’s share of earnings from Diamond Green Diesel (DGD). Additionally, net sales for the fourth quarter of 2023 amounted to $1.6 billion, down from $1.8 billion for the corresponding period in the previous year.
For the fiscal year ending Dec. 30, 2023, Darling Ingredients reported net sales of $6.8 billion, compared to $6.5 billion in fiscal year 2022. Net income for fiscal year 2023 totaled $647.7 million, or $3.99 per diluted share, down from $737.7 million, or $4.49 per diluted share, in fiscal year 2022.
Randall C. Stuewe, Chairman and CEO of Darling Ingredients, expressed satisfaction with the company’s performance, noting it as the sixth consecutive year of record growth in volumes and combined adjusted EBITDA. Stuewe emphasized the resilience of Darling’s vertically integrated business model in delivering robust earnings amidst commodity volatility.
In the fourth quarter of 2023, DGD sold 336.6 million gallons of renewable diesel at an average of $0.23 per gallon EBITDA. Throughout 2023, DGD sold 1.2 billion gallons of renewable diesel with an average EBITDA of $0.81 per gallon. Darling Ingredients received $163.6 million in cash dividends from the joint venture during the year.
Combined adjusted EBITDA for the fourth quarter of 2023 amounted to $350.9 million, compared to $413.0 million for the same period in 2022. For fiscal year 2023, combined adjusted EBITDA totaled $1.61 billion, up from $1.54 billion in fiscal year 2022.
As of Dec. 30, 2023, Darling Ingredients held $126.5 million in cash and cash equivalents, with $832.5 million available under its committed revolving credit agreement. Total debt outstanding was $4.4 billion, with a leverage ratio of 3.26X as measured by the company’s bank covenant. Capital expenditures for the fourth quarter of 2023 were $174.9 million, and $555.5 million for fiscal year 2023.
Stuewe reiterated Darling Ingredients’ commitment to driving shareholder value and expressed optimism for a strong performance in 2024, citing the company’s robust business foundation.
