EX-99.1 2 exh991-pressreleaseq32.htm EXHIBIT 99.1 PRESS RELEASE Document

EXHIBIT 99.1

    News Release
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DARLING INGREDIENTS INC. REPORTS THIRD QUARTER 2020 FINANCIAL RESULTS


IRVING, TEXAS, Nov. 3, 2020/PRNewswire/ Darling Ingredients Inc. (NYSE: DAR, “Darling”) --

Third Quarter 2020
•Net income of $101.1 million, or $0.61 per GAAP diluted share
•Net Sales of $850.6 million
•Combined adjusted EBITDA of $218.5 million
•Diamond Green Diesel (“DGD”) earned $2.41 EBITDA per gallon on approximately 80 million gallons sold
•Global Ingredients business trailing twelve month EBITDA of $467.6 million demonstrates the continued strength and diversity of the platform

Darling reported net sales of $850.6 million for the third quarter of 2020, as compared with net sales of $842.0 million for the same period a year ago. Net income attributable to Darling for the three months ended September 26, 2020 was $101.1 million, or $0.61 per diluted share, compared to a net income of $25.7 million, or $0.15 per diluted share, for the third quarter of 2019.

“Better results in our food segment combined with a strong performance in our international fuel segment, drove the results for our best quarterly performance of 2020,” said Randall C. Stuewe, Chairman and Chief Executive Officer of Darling Ingredients Inc. “We continue to see improved margins in our global rendering through better cost management and our hydrolyzed collagen sales most affected by the economic impact of COVID have seen a solid turnaround.”

“DGD had record sales volume of 80 million gallons for the third quarter as our vertically integrated supply chain that supports the lowest cost production system and the lowest carbon scoring feedstocks in North America continued to produce strong results. The plant turnaround in October was completed on schedule as we look to finish up 2020 on a positive note producing 285 million gallons of renewable diesel for the year,” Stuewe added.

“Our balance sheet remains strong as we paid down our outstanding term loan B by $145 million during the third quarter. Our leverage ratio as measured by our bank covenant was 1.93 at the end of the third quarter as we continue to work on achieving an investment grade rating in the future. Our capital expenditures stood at approximately $185 million for the first nine months of 2020, as we continue to effectively manage our capital expenditures,” commented Stuewe.

For the nine months ended September 26, 2020, Darling reported net sales of $2.6 billion, as compared with net sales of $2.5 billion for the same period of 2019. Net Income attributable to Darling for the first nine months of 2020 was $252.1 million, or $1.51 per diluted share, as compared to a net income of $70.0 million, or $0.42 per diluted share, for the first nine months of 2019.

In October 2020, Darling acquired a private company that owned rendering plants located in Belgium for approximately $29 million. This acquisition adds approximately 50 million pounds of protein meals and 50 million pounds of animal fats to Darling’s capabilities, giving the company a stronger position in rendered poultry products in Belgium.

As of September 26, 2020, Darling had $66.0 million in cash and cash equivalents, and $934.3 million available under committed revolving credit agreements. Total debt outstanding at the end of the third quarter of 2020 was $1.5 billion.








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Combined adjusted EBITDA was $218.5 million for the third quarter of 2020, compared to $147.8 million for the same period in 2019. On a year-to-date basis, combined adjusted EBITDA totaled $627.0 million for 2020, compared to $440.5 million on a year-to-date basis for 2019.
Segment Financial Tables (in thousands)
Three Months Ended September 26, 2020Feed IngredientsFood IngredientsFuel IngredientsCorporateTotal
Net sales$483,025 $291,842 $75,702 $— $850,569 
Cost of sales and operating expenses361,576 226,745 50,047 — 638,368 
Gross margin$121,449 $65,097 $25,655 $— $212,201 
Loss/(gain) on sale of assets167 16 (61)— 122 
Selling, general and administrative expenses49,028 23,366 5,038 12,561 89,993 
Depreciation and amortization53,764 20,648 8,633 2,685 85,730 
Equity in net income of Diamond Green Diesel— — 91,099 — 91,099 
Segment operating income/(loss)$18,490 $21,067 $103,144 $(15,246)$127,455 
Equity in net income of unconsolidated subsidiaries$906 $— $— $— $906 
Segment income/(loss)$19,396 $21,067 $103,144 $(15,246)$128,361 
Segment EBITDA$72,254 $41,715 $20,678 $(12,561)$122,086 
DGD Adjusted EBITDA (Darling's Share)$— $— $96,435 $— $96,435 
Combined adjusted EBITDA$72,254 $41,715 $117,113 $(12,561)$218,521 

Three Months Ended September 28, 2019Feed IngredientsFood IngredientsFuel IngredientsCorporateTotal
Net sales$496,978 $276,467 $68,604 $— $842,049 
Cost of sales and operating expenses379,792 214,643 58,488 — 652,923 
Gross margin$117,186 $61,824 $10,116 $— $189,126 
Loss/(gain) on sale of assets(2,429)(253)13 — (2,669)
Selling, general and administrative expenses47,319 22,811 912 12,507 83,549 
Depreciation and amortization50,182 19,743 7,895 2,587 80,407 
Equity in net income of Diamond Green Diesel— — 32,020 — 32,020 
Segment operating income/(loss)$22,114 $19,523 $33,316 $(15,094)$59,859 
Equity in net loss of unconsolidated subsidiaries$(665)$— $— $— $(665)
Segment income/(loss)$21,449 $19,523 $33,316 $(15,094)$59,194 
Segment EBITDA$72,296 $39,266 $9,191 $(12,507)$108,246 
DGD Adjusted EBITDA (Darling's Share)$— $— $39,548 $— $39,548 
Combined adjusted EBITDA$72,296 $39,266 $48,739 $(12,507)$147,794 




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Segment Financial Tables (in thousands) continued

Nine Months Ended September 26, 2020Feed IngredientsFood IngredientsFuel IngredientsCorporateTotal
Net sales$1,499,340 $841,070 $211,674 $— $2,552,084 
Cost of sales and operating expenses1,117,931 652,334 147,358 — 1,917,623 
Gross margin$381,409 $188,736 $64,316 $— $634,461 
Loss/(gain) on sale of assets293 (30)(53)— 210 
Selling, general and administrative expenses153,459 71,406 10,645 40,869 276,379 
Depreciation and amortization159,968 60,925 24,705 8,113 253,711 
Equity in net income of Diamond Green Diesel— — 252,411 — 252,411 
Segment operating income/(loss)$67,689 $56,435 $281,430 $(48,982)$356,572 
Equity in net income of unconsolidated subsidiaries$2,467 $— $— $— $2,467 
Segment income/(loss)$70,156 $56,435 $281,430 $(48,982)$359,039 
Segment EBITDA$227,657 $117,360 $53,724 $(40,869)$357,872 
DGD Adjusted EBITDA (Darling's Share)$— $— $269,177 $— $269,177 
Combined adjusted EBITDA$227,657 $117,360 $322,901 $(40,869)$627,049 

Nine Months Ended September 28, 2019Feed IngredientsFood IngredientsFuel IngredientsCorporateTotal
Net sales$1,480,244 $830,466 $193,767 $— $2,504,477 
Cost of sales and operating expenses1,143,606 643,091 161,855 — 1,948,552 
Gross margin$336,638 $187,375 $31,912 $— $555,925 
Loss/(gain) on sale of assets(7,343)(13,518)16 — (20,845)
Selling, general and administrative expenses142,615 68,129 583 38,242 249,569 
Depreciation and amortization148,271 59,115 24,055 7,616 239,057 
Equity in net income of Diamond Green Diesel— — 94,390 — 94,390 
Segment operating income/(loss)$53,095 $73,649 $101,648 $(45,858)$182,534 
Equity in net loss of unconsolidated subsidiaries$(1,087)$— $— $— $(1,087)
Segment income/(loss)$52,008 $73,649 $101,648 $(45,858)$181,447 
Segment EBITDA$201,366 $132,764 $31,313 $(38,242)$327,201 
DGD Adjusted EBITDA (Darling's Share)$— $— $113,270 $— $113,270 
Combined adjusted EBITDA$201,366 $132,764 $144,583 $(38,242)$440,471 








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Darling Ingredients Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
September 26, 2020 and December 28, 2019
(in thousands)
September 26,December 28,
20202019
ASSETS(unaudited)
Current assets:
Cash and cash equivalents$65,845 $72,935 
Restricted cash110 110 
Accounts receivable, net373,583 406,338 
Inventories406,805 362,957 
Prepaid expenses52,359 46,599 
Income taxes refundable3,940 3,317 
Other current assets28,532 25,032 
Total current assets931,174 917,288 
Property, plant and equipment, net1,789,172 1,802,411 
Intangible assets, net474,793 526,394 
Goodwill1,239,343 1,223,291 
Investment in unconsolidated subsidiaries742,875 689,354 
Operating lease right-of-use assets142,269 124,726 
Other assets45,598 47,400 
Deferred income taxes15,762 14,394 
$5,380,986 $5,345,258 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt$26,185 $90,996 
Accounts payable, principally trade206,998 239,252 
Income taxes payable19,013 8,895 
Current operating lease liabilities40,973 37,805 
Accrued expenses330,385 311,391 
Total current liabilities623,554 688,339 
Long-term debt, net of current portion1,448,019 1,558,429 
Long-term operating lease liabilities105,821 91,424 
Other noncurrent liabilities102,559 115,785 
Deferred income taxes265,844 247,931 
Total liabilities2,545,797 2,701,908 
Commitments and contingencies
Total Darling's stockholders' equity2,773,920 2,565,819 
Noncontrolling interests61,269 77,531 
Total stockholders' equity$2,835,189 $2,643,350 
$5,380,986 $5,345,258 





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Darling Ingredients Inc. and Subsidiaries
Consolidated Operating Results
For the Three-Month and Nine-Month Periods Ended September 26, 2020 and
September 28, 2019
(in thousands, except per share data)
(unaudited)

Three Months EndedNine Months Ended
$ Change$ Change
September 26,September 28,FavorableSeptember 26,September 28,Favorable
20202019(Unfavorable)20202019(Unfavorable)
Net sales$850,569 $842,049 $8,520 $2,552,084 $2,504,477 $47,607 
Costs and expenses:
Cost of sales and operating expenses638,368 652,923 14,555 1,917,623 1,948,552 30,929 
Loss (gain) on sale of assets
122 (2,669)(2,791)210 (20,845)(21,055)
Selling, general and administrative expenses
89,993 83,549 (6,444)276,379 249,569 (26,810)
Depreciation and amortization85,730 80,407 (5,323)253,711 239,057 (14,654)
Total costs and expenses814,213 814,210 (3)2,447,923 2,416,333 (31,590)
Equity in net income of Diamond Green Diesel91,099 32,020 59,079 252,411 94,390 158,021 
Operating income127,455 59,859 67,596 356,572 182,534 174,038 
Other expense:
Interest expense(18,793)(19,359)566 (55,803)(60,088)4,285 
Debt extinguishment costs— — — — (12,126)12,126 
Foreign currency gain/(loss)(1,239)466 (1,705)(709)(654)(55)
Other expense, net(1,912)(2,614)702 (5,278)(7,158)1,880 
Total other expense(21,944)(21,507)(437)(61,790)(80,026)18,236 
Equity in net income/(loss) of unconsolidated subsidiaries
906 (665)1,571 2,467 (1,087)3,554 
Income before income taxes106,417 37,687 68,730 297,249 101,421 195,828 
Income tax expense4,812 10,850 6,038 43,058 23,900 (19,158)
Net income101,605 26,837 74,768 254,191 77,521 176,670 
Net income attributable to noncontrolling interests
(480)(1,116)636 (2,117)(7,530)5,413 
Net income attributable to Darling$101,125 $25,721 $75,404 $252,074 $69,991 $182,083 
Basic income per share:$0.62 $0.16 $0.46 $1.55 $0.42 $1.13 
Diluted income per share:$0.61 $0.15 $0.46 $1.51 $0.42 $1.09 
Number of diluted common shares:166,997 168,266 166,974 168,453 


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Darling Ingredients Inc. and Subsidiaries
Consolidated Statement of Cash Flows
Periods Ended September 26, 2020 and September 28, 2019
(in thousands)
(unaudited)
Nine Months Ended
Sept 26,Sept 28,
Cash flows from operating activities:20202019
Net income$254,191 $77,521 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization253,711 239,057 
Loss/(gain) on disposal of property, plant, equipment and other assets210 (20,845)
Gain on insurance proceeds from insurance settlements— (1,371)
Deferred taxes13,362 (4,765)
Increase (decrease) in long-term pension liability(7,960)1,122 
Stock-based compensation expense19,202 18,543 
Write-off deferred loan costs2,419 4,721 
Deferred loan cost amortization4,242 4,435 
Equity in net income of Diamond Green Diesel and other unconsolidated subsidiaries(254,878)(93,303)
Distribution of earnings from Diamond Green Diesel and other unconsolidated subsidiaries207,165 57,118 
Changes in operating assets and liabilities, net of effects from acquisitions:
  Accounts receivable36,083 20,388 
  Income taxes refundable/payable8,282 8,058 
  Inventories and prepaid expenses(43,980)(34,371)
  Accounts payable and accrued expenses(10,832)(19,799)
  Other(10,804)6,173 
Net cash provided by operating activities470,413 262,682 
Cash flows from investing activities:
Capital expenditures(184,919)(245,092)
Acquisition, net of cash acquired— (1,431)
Investment in unconsolidated subsidiary— (2,000)
Gross proceeds from disposal of property, plant and equipment and other assets1,291 15,402 
Proceeds from insurance settlement— 1,371 
Payments related to routes and other intangibles(3,712)(3,150)
Net cash used by investing activities(187,340)(234,900)
Cash flows from financing activities:
Proceeds from long-term debt24,085 511,985 
Payments on long-term debt(171,640)(566,107)
Borrowings from revolving credit facility390,971 325,485 
Payments on revolving credit facility(415,800)(332,884)
Net cash overdraft financing(33,385)27,858 
Deferred loan costs(3,688)(7,027)
Issuance of common stock67 39 
Repurchase of common stock(55,044)(11,740)
Minimum withholding taxes paid on stock awards(7,980)(3,247)
Acquisition of noncontrolling interest(8,784)— 
Distributions to noncontrolling interests(6,253)(4,500)
Net cash provided by financing activities(287,451)(60,138)
Effect of exchange rate changes on cash flows(2,712)(5,732)
Net decrease in cash, cash equivalents and restricted cash(7,090)(38,088)
Cash, cash equivalents and restricted cash at beginning of year73,045 107,369 
Cash, cash equivalents and restricted cash at end of period$65,955 $69,281 
Supplemental disclosure of cash flow information:
Accrued capital expenditures$(2,202)$3,978 
Cash paid during the period for:
Interest, net of capitalized interest$39,481 $49,727 
Income taxes, net of refunds$24,868 $21,475 
Non-cash operating activities:
Operating lease right of use asset obtained in exchange for new lease liabilities$44,479 $16,425 
Non-cash financing activities:
Debt issued for service contract assets$21 $— 


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Diamond Green Diesel Joint Venture
Condensed Consolidated Balance Sheets
September 30, 2020 and December 31, 2019
(in thousands)
September 30,December 31,
20202019
(unaudited)
Assets:
Total current assets$465,669 $668,026 
Property, plant and equipment, net1,039,802 713,489 
Other assets32,813 30,710 
Total assets$1,538,284 $1,412,225 
Liabilities and members' equity:
Total current portion of long term debt$506 $341 
Total other current liabilities98,618 75,802 
Total long term debt8,839 8,742 
Total other long term liabilities3,875 4,422 
Total members' equity1,426,446 1,322,918 
Total liabilities and members' equity$1,538,284 $1,412,225 

Diamond Green Diesel Joint Venture
Operating Financial Results
For the Three-Month and Nine-Month Periods Ended September 30, 2020
and September 30, 2019
(in thousands)
(unaudited)


Three Months EndedNine Months Ended
$ Change$ Change
September 30,September 30,FavorableSeptember 30,September 30,Favorable
20202019(Unfavorable)20202019(Unfavorable)
Revenues:
Operating revenues$346,276 $262,118 $84,158 $1,000,717 $859,647 $141,070 
Expenses:
Total costs and expenses less depreciation, amortization and accretion expense
153,406 183,022 29,616 462,364 633,109 170,745 
Depreciation, amortization and accretion expense
10,772 15,242 4,470 33,660 38,574 4,914 
Total costs and expenses164,178 198,264 34,086 496,024 671,683 175,659 
Operating income182,098 63,854 118,244 504,693 187,964 316,729 
Other income415 506 (91)1,076 1,781 (705)
Interest and debt expense, net(315)(320)5 (947)(965)18 
Net income$182,198 $64,040 $118,158 $504,822 $188,780 $316,042 



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Darling Ingredients Inc. reports Adjusted EBITDA results, which is a Non-GAAP financial measure, as a complement to results provided in accordance with generally accepted accounting principles (GAAP) (for additional information, see “Use of Non-GAAP Financial Measures” included later in this media release). The Company believes that Adjusted EBITDA provides additional useful information to investors. Adjusted EBITDA, as the Company uses the term, is calculated below:

Reconciliation of Net Income to (Non-GAAP) Adjusted EBITDA and (Non-GAAP) Pro forma Adjusted EBITDA For the Three-Month and Nine-Month Periods ended September 26, 2020 and September 28, 2019
Three Months EndedNine Months Ended
Adjusted EBITDASeptember 26,September 28,September 26,September 28,
(U.S. dollars in thousands)2020201920202019
Net income attributable to Darling$101,125 $25,721 $252,074 $69,991 
Depreciation and amortization85,730 80,407 253,711 239,057 
Interest expense18,793 19,359 55,803 60,088 
Income tax expense4,812 10,850 43,058 23,900 
Foreign currency loss/(gain)1,239 (466)709 654 
Other expense, net1,912 2,614 5,278 7,158 
Debt extinguishment costs— — — 12,126 
Equity in net income of Diamond Green Diesel(91,099)(32,020)(252,411)(94,390)
Equity in net (income)/loss of unconsolidated subsidiaries(906)665 (2,467)1,087 
Net income attributable to noncontrolling interests480 1,116 2,117 7,530 
Adjusted EBITDA (Non-GAAP)$122,086 $108,246 $357,872 $327,201 
Foreign currency exchange impact(3,702)(1)— 407 (2)— 
Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP)$118,384 $108,246 $358,279 $327,201 
DGD Joint Venture Adjusted EBITDA (Darling's share)$96,435 $39,548 $269,177 $113,270 
Darling plus Darling's share of DGD Joint Venture Adjusted EBITDA$218,521 $147,794 $627,049 $440,471 
(1) The average rate assumption used in the calculation was the actual fiscal average rate for the three months ended September 26, 2020 of €1.00:USD$1.17 and CAD$1.00:USD$0.75 as compared to the average rate for the three months ended September 28, 2019 of €1.00:USD$1.11 and CAD$1.00:USD $0.76, respectively. (2) The average rate assumption used in the calculation was the actual fiscal average rate for the nine months ended September 26, 2020 of €1.00:USD$1.12 and CAD$1.00:USD$0.74 as compared to the average rate for the nine months ended September 28, 2019 of €1.00:USD$1.12 and CAD$1.00:USD$0.75, respectively.


About Darling
Darling Ingredients Inc. (NYSE: DAR) is one of the world’s leading producers of organic ingredients, producing a wide array of sustainable protein and fat products while being one of the largest producers of renewable clean energy. With operations on five continents, Darling collects waste streams from the agri-food industry, repurposing into specialty ingredients, such as hydrolyzed collagen, edible and feed-grade fats, animal proteins and meals, plasma, pet food ingredients, fuel feedstocks, and green bioenergy. The Company sells its products around the globe and works to strengthen our promise for a better tomorrow, creating product applications for health, nutrients and bioenergy while optimizing our services to the food chain. Darling is a 50% joint partner in Diamond Green Diesel (DGD), North America’s largest renewable diesel manufacturer, currently producing approximately 275 million gallons of renewable diesel annually which products reduce Green House Gas (GHG) emissions by up to 85% compared to fossil fuels. For additional information, visit the Company's website at http://www.darlingii.com. For more information on Darling’s ESG efforts, visit http://www.darlingii.com/csr.




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Darling Ingredients Inc. will host a conference call to discuss the Company’s third quarter 2020 financial results at 9:00 am Eastern Time (8:00 am Central Time) on Wednesday, November 4, 2020. To listen to the conference call, participants calling from within North America should dial 1-844-868-8847; international participants should dial 1-412-317-6593. Please refer to access code 10149629. Please call approximately ten minutes before the start of the call to ensure that you are connected.

The call will also be available as a live audio webcast that can be accessed on the Company website at http://ir.darlingii.com. Beginning one hour after its completion, a replay of the call can be accessed through November 11, 2020, by dialing 1-877-344-7529 (U.S. callers), 1-855-669-9658 (Canada) and 1-412-317-0088 (international callers). The access code for the replay is 10149629. The conference call will also be archived on the Company’s website.

Use of Non-GAAP Financial 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 accordance with GAAP. Adjusted EBITDA is presented here not as an alternative to net income, but rather as a measure of the Company’s operating performance. Since EBITDA (generally, net income plus interest expense, taxes, depreciation and amortization) is not calculated identically by all companies, this presentation may not be comparable to EBITDA or Adjusted EBITDA presentations disclosed by other companies. Adjusted EBITDA is calculated in this presentation and represents, for any relevant period, net income/(loss) plus depreciation and amortization, goodwill and long-lived asset impairment, interest expense, (income)/loss from discontinued operations, net of tax, income tax provision, other income/(expense) and equity in net loss of unconsolidated subsidiary. Management believes that Adjusted EBITDA is useful in evaluating the Company’s operating performance compared to that of other companies in its industry because the calculation of Adjusted EBITDA generally eliminates the effects of financing, income taxes and certain non-cash and other items that may vary for different companies for reasons unrelated to overall operating performance.

As a result, the Company’s management uses Adjusted EBITDA as a measure to evaluate performance and for other discretionary purposes. In addition to the foregoing, management also uses or will use Adjusted EBITDA to measure compliance with certain financial covenants under the Company’s Senior Secured Credit Facilities, 5.25% Notes and 3.625% Notes that were outstanding at September 26, 2020. However, the amounts shown in this presentation for Adjusted EBITDA differ from the amounts calculated under similarly titled definitions in the Company’s Senior Secured Credit Facilities, 5.25% Notes and 3.625% Notes, as those definitions permit further adjustments to reflect certain other non-recurring costs, non-cash charges and cash dividends from the DGD Joint Venture. Additionally, the Company evaluates the impact of foreign exchange impact on operating cash flow, which is defined as segment operating income (loss) plus depreciation and amortization.

Cautionary Statements Regarding Forward-Looking Information:

{This media release contains “forward-looking” statements regarding the business operations and prospects of Darling Ingredients Inc. and industry factors affecting it. These statements are identified by words such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “could,” “may,” “will,” “should,” “planned,” “potential,” “continue,” “momentum,” and other words referring to events that may occur in the future. These statements reflect Darling Ingredient’s current view of future events and are based on its assessment of, and are subject to, a variety of risks and uncertainties beyond its control, each of which could cause actual results to differ materially from those indicated in the forward-looking statements. These factors include, among others, existing and unknown future limitations on the ability of the Company's direct and indirect subsidiaries to make their cash flow available to the Company for payments on the Company's indebtedness or other purposes; global demands for bio-fuels and grain and oilseed commodities, which have exhibited volatility, and can impact the cost of feed for cattle, hogs and poultry, thus affecting available rendering feedstock and selling prices for the Company’s products; reductions in raw material volumes available to the Company due to weak margins in the meat production industry as a result of higher feed costs, reduced consumer demand or other factors, reduced volume from food service establishments, or otherwise; reduced demand for animal feed; reduced finished product prices, including a decline







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November 3, 2020
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in fat and used cooking oil finished product prices; changes to worldwide government policies relating to renewable fuels and greenhouse gas(“GHG”) emissions that adversely affect programs like the U.S. government’s renewable fuel standard, low carbon fuel standards (“LCFS”) and tax credits for biofuels both in the United States and abroad; possible product recall resulting from developments relating to the discovery of unauthorized adulterations to food or food additives; the occurrence of 2009 H1N1 flu (initially known as “Swine Flu”), Highly pathogenic strains of avian influenza (collectively known as “Bird Flu”), severe acute respiratory syndrome (“SARS”), bovine spongiform encephalopathy (or "BSE"), porcine epidemic diarrhea ("PED") or other diseases associated with animal origin in the United States or elsewhere, such as the outbreak of African Swine Fever (“ASF”) in China and elsewhere; the occurrence of pandemics, epidemics or disease outbreaks, such as the current COVID-19 outbreak; unanticipated costs and/or reductions in raw material volumes related to the Company’s compliance with the existing or unforeseen new U.S. or foreign (including, without limitation, China) regulations (including new or modified animal feed, Bird Flu, SARS, PED, BSE, ASF or similar or unanticipated regulations) affecting the industries in which the Company operates or its value added products; risks associated with the DGD Joint Venture, including possible unanticipated operating disruptions and issues relating to the announced expansion project; risks and uncertainties relating to international sales and operations, including imposition of tariffs, quotas, trade barriers and other trade protections imposed by foreign countries; difficulties or a significant disruption in our information systems or failure to implement new systems and software successfully, risks relating to possible third party claims of intellectual property infringement; increased contributions to the Company’s pension and benefit plans, including multiemployer and employer-sponsored defined benefit pension plans as required by legislation, regulation or other applicable U.S. or foreign law or resulting from a U.S. mass withdrawal event; bad debt write-offs; loss of or failure to obtain necessary permits and registrations; continued or escalated conflict in the Middle East, North Korea, Ukraine or elsewhere; uncertainty regarding the exit of the U.K. from the European Union; and/or unfavorable export or import markets. These factors, coupled with volatile prices for natural gas and diesel fuel, climate conditions, currency exchange fluctuations, general performance of the U.S. and global economies, disturbances in world financial, credit, commodities and stock markets, and any decline in consumer confidence and discretionary spending, including the inability of consumers and companies to obtain credit due to lack of liquidity in the financial markets, among others, could cause actual results to vary materially from the forward looking statements included in this release or negatively impact the Company's results of operations. Among other things, future profitability may be affected by the Company’s ability to grow its business, which faces competition from companies that may have substantially greater resources than the Company. The Company’s announced share repurchase program may be suspended or discontinued at any time and purchases of shares under the program are subject to market conditions and other factors, which are likely to change from time to time. Other risks and uncertainties regarding Darling Ingredients Inc., its business and the industries in which it operates are referenced from time to time in the Company’s filings with the Securities and Exchange Commission. Darling Ingredients Inc. is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.}

For More Information, contact:
Jim Stark, Vice President, Investor Relations Email : james.stark@darlingii.com
5601 MacArthur Blvd., Irving, Texas 75038 Phone : 972-281-4823