DARLING INGREDIENTS Reports Fourth Quarter FY2022 Earnings Results

Earnings Overview

DARLING INGREDIENTS ($NYSE:DAR) reported its earnings results for the fourth quarter of FY2022, which ended on December 31, 2022. Total revenue for the quarter was USD 156.6 million, a slight increase of 0.5% compared to the same period in FY2021. Net income for the quarter rose to USD 1768.1 million, an impressive increase of 35.0% when compared to the same quarter of the previous year.

Transcripts Simplified

Net income for the fourth quarter of 2022 totaled $156.6 million or $0.96 per diluted share compared to net income of $155.8 million or $0.94 per diluted share for the same period in 2021. Net sales were $1.77 billion for Q4 2022, an increase of 35% compared to $1.31 billion for Q4 2021. Operating income increased 18.1% to $249.2 million. For fiscal year 2022, net income was $737.7 million or $4.49 per diluted share compared to $650.9 million or $3.90 per diluted share for fiscal year 2021. Net sales were $6.53 billion for FY 2022, an increase of 37.8% compared to $4.74 billion for FY 2021.

Operating income increased to $1.03 billion from $884.5 million in FY 2021. Total other expenses increased approximately $34 million quarter-over-quarter and $71.6 million year-over-year primarily due to increases in interest expense of $31.2 million and $63.5 million, respectively, from increased debt. The company recorded income tax expense of $146.6 million for FY 2022 and an effective tax rate of 16.4%. Cash tax payments were $113 million in 2022 and are expected to increase to approximately $180 million in 2023.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Darling Ingredients. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Darling Ingredients. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Darling Ingredients. More…

Key Ratios Snapshot

Some of the financial key ratios for Darling Ingredients are shown below. More…

Share Price

The company stock opened at $67.1 and closed at $67.6, up by 0.9% from last closing price of 67.0. The company’s CEO, Randall Stuewe, stated, “We are very pleased with the progress we have made in our fourth quarter and full year results. Our strong performance in this uncertain economic environment was due to our relentless focus on efficiency and cost control while continuing to invest in our business.” Darling Ingredients‘ CFO, Joe Muscato, commented, “We remain dedicated to creating shareholder value through organic growth, strategic acquisitions and disciplined capital allocation.” With these positive results, investors can look forward to Darling Ingredients continuing to be a leader in sustainable natural ingredients for the foreseeable future. Live Quote…

Analysis

At GoodWhale, we’ve conducted an intensive review of DARLING INGREDIENTS‘ fundamentals. Based on our Risk Rating, DARLING INGREDIENTS is a medium risk investment as far as financial and business aspects are concerned. We’ve also detected two risk warnings in the company’s balance sheet and financial journal. To get a comprehensive overview of DARLING INGREDIENTS’ financials and potential risks, we encourage you to sign up for GoodWhale.com and get access to our detailed analysis. More…

Peers

The company produces a variety of ingredients for the food, beverage, and animal feed industries. Darling Ingredients Inc has a number of competitors, including Guilin Seamild Foods Co Ltd, Kore Foods Ltd, and Slantcho AD.

– Guilin Seamild Foods Co Ltd ($SZSE:002956)

Guilin Seamild Foods Co Ltd is a market leader in the production of rice-based food products in China. The company has a strong market presence in the domestic market and is also expanding its operations in the international market. The company has a market capitalization of 2.95 billion as of 2022 and a return on equity of 4.39%. The company is engaged in the production of a wide range of rice-based food products, including rice noodles, rice cakes, and rice crackers. The company has a strong research and development team that is constantly innovating new products to meet the changing needs of the market. The company is well-positioned to continue its growth in the future.

– Kore Foods Ltd ($BSE:500458)

Kore Foods Ltd is a food company that produces and sells food products. The company has a market cap of 156.58M as of 2022 and a Return on Equity of -46.07%. Kore Foods Ltd’s products include processed meats, poultry, and seafood; and prepared meals. The company sells its products through supermarkets, hypermarkets, and convenience stores in the United Kingdom, the United States, Canada, Australia, New Zealand, and internationally.

Summary

Darling Ingredients reported positive financial results for the fourth quarter of FY2022, with total revenue increasing by 0.5% and net income increasing by 35.0% year over year. This is a strong indication of the company’s performance and provides confidence in investing in Darling Ingredients. Furthermore, the company’s earnings growth provides potential investors with an opportunity to capitalize on its long-term potential. With its financials looking strong, Darling Ingredients is an attractive investment opportunity that promises to deliver consistent returns in the coming years.