Darling Ingredients Inc. Reports First Quarter 2019 Financial Results: Robust Global Food Segment, Steady Fuel Segment Performance

For the first quarter of 2019, the Company reported net sales of $835.1 million, as compared with net sales of $875.4 million for the first quarter of 2018.  Net income attributable to Darling for the three months ended March 30, 2019 was $18.0 million, or $0.11 per diluted share, compared to a net income of $97.3 million, or $0.58 per diluted share, for the first quarter of 2018.  The year-over-year decrease in net income for the first quarter 2019 is primarily due to the inclusion of the 2017 retroactive blenders tax credit ("BTC") in the results for the first quarter 2018, as compared to no BTC, to date, in 2019. Additionally, lower pet grade protein margins, higher energy costs due to a difficult winter, FX variance and costs associated with North America flooding negatively impacted earnings.

For the first quarter of 2019, the Company reported net sales of $835.1 million, as compared with net sales of $875.4 million for the first quarter of 2018.  Net income attributable to Darling for the three months ended March 30, 2019 was $18.0 million, or $0.11 per diluted share, compared to a net income of $97.3 million, or $0.58 per diluted share, for the first quarter of 2018.  The year-over-year decrease in net income for the first quarter 2019 is primarily due to the inclusion of the 2017 retroactive blenders tax credit ("BTC") in the results for the first quarter 2018, as compared to no BTC, to date, in 2019. Additionally, lower pet grade protein margins, higher energy costs due to a difficult winter, FX variance and costs associated with North America flooding negatively impacted earnings.

Comments on the First Quarter 2019

"Our teams executed well during the first quarter 2019 despite headwinds impacting our finished product pricing, challenging weather events disrupting some of our operations in North America and African Swine Fever pressuring the global marketplace," said Randall C. Stuewe, Chairman and Chief Executive Officer of Darling Ingredients Inc. "Global volumes trended higher, the Food segment reported record results, and we delivered overall improved adjusted EBITDA when adjusting the prior year for the BTC and a stronger U.S. dollar."

"Construction is underway on Super Diamond that increases annual production capacity at our Diamond Green Diesel JV to 675 million gallons of renewable diesel plus additional renewable naphtha. We anticipate completion in fourth quarter 2021," Stuewe concluded.