EX-99.1 2 exh991-pressreleaseq22022.htm EX-99.1 PRESS RELEASE Document

Exhibit 99.1    
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Contact:    Suann Guthrie
VP, Investor Relations, Sustainability & Communications
(469) 214-8202; Suann.Guthrie@darlingii.com
FOR IMMEDIATE RELEASE
Aug. 9, 2022


Darling Ingredients Inc. Delivers Another Record Quarter

Second Quarter 2022
Net income of $202 million, or $1.23 per GAAP diluted share
Net Sales of $1.65 billion
Combined adjusted EBITDA of $402.6 million
Repurchased $48.7 million of stock

IRVING, TEXAS - Darling Ingredients Inc. (NYSE: DAR) today reported another record quarter, with net income of $202 million, or $1.23 per diluted share for the second quarter 2022, compared to net income of $196.6 million, or $1.17 per diluted share, for the second quarter 2021. The company also reported net sales of $1.65 billion for the second quarter of 2022, as compared with net sales of $1.2 billion for the same period a year ago.

“Darling Ingredients delivered another record quarter, setting an all-time quarterly high of $402.6 million in combined adjusted EBITDA,” said Randall C. Stuewe, Chairman and Chief Executive Officer of Darling Ingredients Inc. “This quarter’s outstanding performance illustrates our diversified platform of specialty ingredients and decarbonization solutions and our ability to adapt to dynamic market conditions.”

For the six months ended July 2, 2022, Darling Ingredients reported net sales of $3 billion, compared to net sales of $2.2 billion for the same period in 2021. Net income attributed to Darling Ingredients for the first six months of 2022 was $390 million, or $2.37 per diluted share, as compared to net income of $348.3 million, or $2.08 per diluted share, for the first six months of 2021.

Combined adjusted EBITDA was $402.6 million for the second quarter 2022, compared to $353.7 million for the same period in 2021. On a year-to-date basis, combined adjusted EBITDA totaled $733.2 million for 2022, as compared to $638.5 million for the same period in 2021.

Under Darling Ingredients’ share repurchase program, the company repurchased approximately 700,000 shares of common stock during the second quarter for a total of $48.7 million, bringing the total stock repurchased year to date 2022 as of July 2, 2022, to approximately 971,000 shares of common stock for a total of $65.9 million.

As of July 2, 2022, Darling had $146.8 million in cash and cash equivalents, and $1.4 billion available under its committed revolving credit agreement. Total debt outstanding as of July 2, 2022 was $2.9 billion. The leverage ratio as measured by the company’s bank covenant was 2.59 as of July 2, 2022. Second quarter capital expenditures totaled approximately $79.9 million.

On May 2, 2022, Darling Ingredients completed the acquisition of Valley Proteins, one of the largest independent rendering companies in the United States. On Aug. 1, 2022, the company completed its acquisition of FASA Group, the largest independent rendering company in Brazil. The company used cash on hand and borrowings under the company’s amended credit agreement to fund the acquisitions.

Darling Ingredients reaffirms its previously announced forecast for full year 2022 of $1.55-$1.6 billion combined adjusted EBITDA.









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News Release
Aug. 9, 2022
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Segment Financial Tables (in thousands)
(unaudited)
Three Months Ended July 2, 2022Feed IngredientsFood IngredientsFuel IngredientsCorporateTotal
Net sales$1,170,347 $369,181 $110,660 $— $1,650,188 
Cost of sales and operating expenses864,306 280,964 86,237 — 1,231,507 
Gross margin306,041 88,217 24,423 — 418,681 
Gain on sale of assets(964)(73)(18)— (1,055)
Selling, general and administrative expenses64,863 22,855 4,277 15,781 107,776 
Restructuring and asset impairment charges8,557 — — — 8,557 
Acquisition and integration costs— — — 5,358 5,358 
Depreciation and amortization68,938 14,449 6,936 2,790 93,113 
Equity in net income of Diamond Green Diesel— — 73,680 — 73,680 
Segment operating income/(loss)$164,647 $50,986 $86,908 $(23,929)$278,612 
Equity in net income of other unconsolidated subsidiaries2,272 — — — 2,272 
Segment income/(loss)$166,919 $50,986 $86,908 $(23,929)$280,884 
Segment EBITDA$242,142 $65,435 $20,164 $(15,781)$311,960 
DGD adjusted EBITDA (Darling's Share)— — 90,611 — 90,611 
Combined adjusted EBITDA$242,142 $65,435 $110,775 $(15,781)$402,571 

Three Months Ended July 3, 2021Feed IngredientsFood IngredientsFuel IngredientsCorporateTotal
Net sales$771,932 $317,031 $109,706 $— $1,198,669 
Cost of sales and operating expenses556,424 238,539 83,110 — 878,073 
Gross margin215,508 78,492 26,596 — 320,596 
Gain on sale of assets(122)(48)(58)— (228)
Selling, general and administrative expenses54,977 25,542 4,474 14,139 99,132 
Depreciation and amortization53,971 15,850 6,698 2,703 79,222 
Equity in net income of Diamond Green Diesel— — 125,788 — 125,788 
Segment operating income/(loss)$106,682 $37,148 $141,270 $(16,842)$268,258 
Equity in net income of other unconsolidated subsidiaries1,940 — — — 1,940 
Segment income/(loss)$108,622 $37,148 $141,270 $(16,842)$270,198 
Segment EBITDA$160,653 $52,998 $22,180 $(14,139)$221,692 
DGD adjusted EBITDA (Darling's Share)— — 132,001 — 132,001 
Combined adjusted EBITDA$160,653 $52,998 $154,181 $(14,139)$353,693 









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Segment Financial Tables (in thousands) continued
(unaudited)
Six Months Ended July 2, 2022Feed IngredientsFood IngredientsFuel IngredientsCorporateTotal
Net sales$2,049,785 $723,995 $242,742 $— $3,016,522 
Cost of sales and operating expenses1,509,829 551,276 190,979 — 2,252,084 
Gross margin539,956 172,719 51,763 — 764,438 
Gain on sale of assets(1,305)(82)(57)— (1,444)
Selling, general and administrative expenses121,072 49,699 8,197 30,840 209,808 
Restructuring and asset impairment charges8,557 — — — 8,557 
Acquisition and integration costs— — — 9,131 9,131 
Depreciation and amortization123,288 29,899 13,610 5,562 172,359 
Equity in net income of Diamond Green Diesel— — 145,484 — 145,484 
Segment operating income/(loss)$288,344 $93,203 $175,497 $(45,533)$511,511 
Equity in net income of other unconsolidated subsidiaries3,632 — — — 3,632 
Segment income/(loss)$291,976 $93,203 $175,497 $(45,533)$515,143 
Segment EBITDA$420,189 $123,102 $43,623 $(30,840)$556,074 
DGD adjusted EBITDA (Darling's Share)— — 177,171 — 177,171 
Combined adjusted EBITDA$420,189 $123,102 $220,794 $(30,840)$733,245 

Six Months Ended July 3, 2021Feed IngredientsFood IngredientsFuel IngredientsCorporateTotal
Net sales$1,423,376 $615,096 $206,913 $— $2,245,385 
Cost of sales and operating expenses1,031,005 464,952 154,900 — 1,650,857 
Gross margin392,371 150,144 52,013 — 594,528 
Loss (gain) on sale of assets(261)(38)— (292)
Selling, general and administrative expenses107,597 50,733 9,341 28,859 196,530 
Restructuring and asset impairment charges— — 778 — 778 
Depreciation and amortization108,580 30,733 12,853 5,590 157,756 
Equity in net income of Diamond Green Diesel— — 228,013 — 228,013 
Segment operating income/(loss)$176,455 $68,671 $257,092 $(34,449)$467,769 
Equity in net income of other unconsolidated subsidiaries2,552 — — — 2,552 
Segment income/(loss)$179,007 $68,671 $257,092 $(34,449)$470,321 
Segment EBITDA$285,035 $99,404 $42,710 $(28,859)$398,290 
DGD adjusted EBITDA (Darling's Share)— — 240,201 — 240,201 
Combined adjusted EBITDA$285,035 $99,404 $282,911 $(28,859)$638,491 







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Darling Ingredients Inc. and Subsidiaries
Consolidated Balance Sheets
July 2, 2022 and January 1, 2022
(thousands)

July 2, 2022 January 1, 2022
ASSETS(unaudited)
Current assets:
Cash and cash equivalents$146,730 $68,906 
Restricted cash110 166 
Accounts receivable, net574,727 469,092 
Inventories578,402 457,465 
Prepaid expenses77,065 53,711 
Income taxes refundable27,330 1,075 
Other current assets57,462 38,599 
Total current assets1,461,826 1,089,014 
Property, plant and equipment, net2,237,199 1,840,080 
Intangible assets, net760,079 397,801 
Goodwill1,555,814 1,219,116 
Investment in unconsolidated subsidiaries1,736,242 1,349,247 
Operating lease right-of-use assets177,328 155,464 
Other assets81,886 66,795 
Deferred income taxes16,312 16,211 
$8,026,686 $6,133,728 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt$32,695 $24,407 
Accounts payable, principally trade414,584 307,118 
Income taxes payable28,452 32,310 
Current operating lease liabilities45,498 38,168 
Accrued expenses398,598 350,681 
Total current liabilities919,827 752,684 
Long-term debt, net of current portion2,881,134 1,438,974 
Long-term operating lease liabilities133,663 120,314 
Other non-current liabilities128,399 111,029 
Deferred income taxes397,140 362,942 
Total liabilities4,460,163 2,785,943 
Commitments and contingencies
Stockholders' equity:
    Common stock, $0.01 par value;1,735 1,717 
Additional paid-in capital1,646,468 1,627,816 
    Treasury stock, at cost(491,717)(374,721)
Accumulated other comprehensive loss(400,907)(321,690)
Retained earnings2,737,887 2,347,838 
                Total Darling's stockholders' equity 3,493,466 3,280,960 
Noncontrolling interests73,057 66,825 
Total Stockholders' equity3,566,523 3,347,785 
$8,026,686 $6,133,728 




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Darling Ingredients Inc. and Subsidiaries
Consolidated Operating Results
For the Three-Month and Six-Month Periods Ended July 2, 2022 and July 3, 2021
(in thousands, except per share data)


Three Months EndedSix Months Ended
(unaudited)$ Change(unaudited)$ Change
July 2,July 3,FavorableJuly 2,July 3,Favorable
20222021(Unfavorable)20222021(Unfavorable)
Net sales$1,650,188 $1,198,669 $451,519 $3,016,522 $2,245,385 $771,137 
Costs and expenses:
Cost of sales and operating expenses1,231,507 878,073 (353,434)2,252,084 1,650,857 (601,227)
Gain on sale of assets(1,055)(228)827 (1,444)(292)1,152 
Selling, general and administrative expenses
107,776 99,132 (8,644)209,808 196,530 (13,278)
Restructuring and asset impairment charges8,557 — (8,557)8,557 778 (7,779)
     Acquisition and integration costs 5,358 — (5,358)9,131 — (9,131)
Depreciation and amortization93,113 79,222 (13,891)172,359 157,756 (14,603)
Total costs and expenses1,445,256 1,056,199 (389,057)2,650,495 2,005,629 (644,866)
  Equity in net income of Diamond Green Diesel73,680 125,788 (52,108)145,484 228,013 (82,529)
Operating income278,612 268,258 10,354 511,511 467,769 43,742 
Other expense:
Interest expense(24,008)(15,268)(8,740)(39,611)(31,696)(7,915)
Foreign currency loss(4,412)(684)(3,728)(5,512)(1,094)(4,418)
Other expense, net(302)(1,198)896 (1,044)(2,357)1,313 
Total other expense(28,722)(17,150)(11,572)(46,167)(35,147)(11,020)
Equity in net income of other unconsolidated subsidiaries2,272 1,940 332 3,632 2,552 1,080 
Income from operations before income taxes252,162 253,048 (886)468,976 435,174 33,802 
Income tax expense47,333 54,979 7,646 73,416 83,687 10,271 
Net income204,829 198,069 6,760 395,560 351,487 44,073 
Net income attributable to noncontrolling interests
(2,833)(1,487)(1,346)(5,511)(3,139)(2,372)
Net income attributable to Darling$201,996 $196,582 $5,414 $390,049 $348,348 $41,701 
Basic income per share:$1.25 $1.21 $0.04 $2.41 $2.14 $0.27 
Diluted income per share:$1.23 $1.17 $0.06 $2.37 $2.08 $0.29 
Number of diluted common shares:164,745 167,597 164,673 167,673 







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Darling Ingredients Inc. and Subsidiaries
Consolidated Statement of Cash Flows
Periods Ended July 2, 2022 and July 3, 2021
(in thousands)

Six Months Ended
(Unaudited)
July 2,July 3,
Cash flows from operating activities:20222021
Net income$395,560 $351,487 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization172,359 157,756 
Gain on sale of assets(1,444)(292)
Asset impairment8,557 138 
Deferred taxes35,674 49,572 
Decrease in long-term pension liability(547)(622)
Stock-based compensation expense13,369 14,011 
Write-off deferred loan costs— 598 
Deferred loan cost amortization2,207 2,047 
Equity in net income of Diamond Green Diesel and other unconsolidated subsidiaries(149,116)(230,565)
Distribution of earnings from Diamond Green Diesel and other unconsolidated subsidiaries1,631 2,497 
Changes in operating assets and liabilities, net of effects from acquisitions:
  Accounts receivable(47,046)(34,911)
  Income taxes refundable/payable(28,834)9,116 
  Inventories and prepaid expenses(95,199)(39,992)
  Accounts payable and accrued expenses72,351 2,770 
  Other(18,487)14,327 
Net cash provided by operating activities361,035 297,937 
Cash flows from investing activities:
Capital expenditures(151,478)(126,094)
Acquisition, net of cash acquired(1,235,537)(2,059)
Investment in Diamond Green Diesel(239,750)— 
Investment in other unconsolidated subsidiaries— (4,449)
Gross proceeds from disposal of property, plant and equipment and other assets2,161 3,064 
Payments related to routes and other intangibles(179)(347)
Net cash used in investing activities(1,624,783)(129,885)
Cash flows from financing activities:
Proceeds from long-term debt1,663,612 20,679 
Payments on long-term debt(23,600)(73,393)
Borrowings from revolving credit facility777,902 207,000 
Payments on revolving credit facility(937,921)(220,000)
Net cash overdraft financing12 16,487 
Deferred loan costs(10,707)— 
Issuance of common stock— 50 
Repurchase of common stock(65,887)(75,663)
Minimum withholding taxes paid on stock awards(45,836)(43,853)
Distributions to noncontrolling interests— (2,164)
Net cash provided/(used) in financing activities1,357,575 (170,857)
Effect of exchange rate changes on cash flows(16,059)(997)
Net increase/(decrease) in cash, cash equivalents and restricted cash77,768 (3,802)
Cash, cash equivalents and restricted cash at beginning of period69,072 81,720 
Cash, cash equivalents and restricted cash at end of period$146,840 $77,918 



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Diamond Green Diesel Joint Venture
Condensed Consolidated Balance Sheets
June 30, 2022 and December 31, 2021
(in thousands)
June 30,December 31,
20222021
(unaudited)
Assets:
Total current assets$1,065,686 $686,294 
Property, plant and equipment, net3,131,430 2,710,747 
Other assets52,324 51,514 
Total assets$4,249,440 $3,448,555 
Liabilities and members' equity:
Total current portion of long term debt$165,439 $165,092 
Total other current liabilities333,651 295,860 
Total long term debt336,743 344,309 
Total other long term liabilities17,148 17,531 
Total members' equity3,396,459 2,625,763 
Total liabilities and members' equity$4,249,440 $3,448,555 


Diamond Green Diesel Joint Venture
Operating Financial Results
For the Three-Month and Six-Month Periods Ended June 30, 2022 and June 30, 2021
(in thousands)



Three Months EndedSix Months Ended
(unaudited)$ Change(unaudited)$ Change
June 30,June 30,FavorableJune 30,June 30,Favorable
20222021(Unfavorable)20222021(Unfavorable)
Revenues:
Operating revenues$1,455,886 $571,859 $884,027 $2,436,578 $1,003,492 $1,433,086 
Expenses:
Total costs and expenses less depreciation, amortization and accretion expense
1,274,665 307,857 (966,808)2,082,237 523,091 (1,559,146)
Depreciation, amortization and accretion expense
31,317 11,995 (19,322)57,809 23,682 (34,127)
Total costs and expenses1,305,982 319,852 (986,130)2,140,046 546,773 (1,593,273)
Operating income149,904 252,007 (102,103)296,532 456,719 (160,187)
Other income 722 353 369 711 411 300 
Interest and debt expense, net(3,266)(784)(2,482)(6,275)(1,104)(5,171)
Net income$147,360 $251,576 $(104,216)$290,968 $456,026 $(165,058)








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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 Six-Month Periods ended July 2, 2022 and July 3, 2021
Three Months EndedSix Months Ended
Adjusted EBITDAJuly 2,July 3,July 2,July 3,
(U.S. dollars in thousands)2022202120222021
Net income attributable to Darling$201,996 $196,582 $390,049 $348,348 
Depreciation and amortization93,113 79,222 172,359 157,756 
Interest expense24,008 15,268 39,611 31,696 
Income tax expense47,333 54,979 73,416 83,687 
Restructuring and asset impairment charges8,557 — 8,557 778 
Acquisition and integration costs5,358 — 9,131 — 
Foreign currency loss4,412 684 5,512 1,094 
Other expense, net302 1,198 1,044 2,357 
Equity in net income of Diamond Green Diesel(73,680)(125,788)(145,484)(228,013)
Equity in net income of other unconsolidated subsidiaries(2,272)(1,940)(3,632)(2,552)
Net income attributable to other noncontrolling interests2,833 1,487 5,511 3,139 
Adjusted EBITDA (Non-GAAP)$311,960 $221,692 $556,074 $398,290 
Foreign currency exchange impact15,928 (1)— 23,155 (2)— 
Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP)$327,888 $221,692 $579,229 $398,290 
DGD Joint Venture Adjusted EBITDA (Darling's Share)$90,611 $132,001 $177,171 $240,201 
Darling plus Darling's share of DGD Joint Venture Adjusted EBITDA$402,571 $353,693 $733,245 $638,491 
(1) The average rate assumption used in this calculation was the actual fiscal average rate for the three months ended July 2, 2022 of €1.00:USD$1.06 and CAD$1.00:USD$0.78 as compared to the average rate for the three months ended July 3, 2021 of €1.00:USD$1.21 and CAD$1.00:USD$0.81, respectively.
(2) The average rate assumption used in this calculation was the actual fiscal average rate for the six months ended July 2, 2022 of €1.00:USD$1.09 and CAD$1.00:USD$0.79 as compared to the average rate for the six months ended July 3, 2021 of €1.00:USD$1.20 and CAD$1.00:USD$0.80, respectively.













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About Darling
Darling Ingredients Inc. (NYSE: DAR) is the largest publicly traded company turning edible by-products and food waste into sustainable products and a leading producer of renewable energy. Recognized as a sustainability leader, the company operates more than 250 plants in 17 countries and repurposes approximately 15% of the world's meat industry waste streams into value-added products, such as green energy, renewable diesel, collagen, fertilizer, animal proteins and meals and pet food ingredients. To learn more, visit darlingii.com and follow us on LinkedIn.

Darling Ingredients Inc. will host a conference call to discuss the Company’s second quarter 2022 financial results at 9 am Eastern Time (8 am Central Time) on Wednesday, Aug. 10, 2022.

Due to historically high call volume, the company is offering participants the opportunity to register in advance for the conference through the following link: https://dpregister.com/sreg/10169154/f3a6e5cbb6.
Registered participants will receive an email with a calendar reminder and a dial-in number and PIN that will allow them immediate access to the call on Aug. 10, 2022.

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 asked to be joined to the Darling Ingredients call. 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 Aug. 17, 2022, 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 8664057. 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.

Pro forma Adjusted EBITDA to Foreign Currency is not a recognized accounting measurement under GAAP. The Company evaluates the impact of foreign currency on its adjusted EBITDA. DGD Joint Venture Adjusted EBITDA (Darling's share) is not reflected in the Adjusted EBITDA or the Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP).

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, 6% Notes, 5.25% Notes and 3.625% Notes that were outstanding at July 2, 2022. 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, 6% Notes, 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.




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Information reconciling forward-looking combined adjusted EBITDA to net income is unavailable to the Company without unreasonable effort. The Company is not able to provide reconciliations of combined adjusted EBITDA to net income because certain items required for such reconciliations are outside of the Company’s control and/or cannot be reasonably predicted, such as the impact of volatile commodity prices on the Company’s operations, impact of foreign currency exchange fluctuations, depreciation and amortization and the provision for income taxes. Preparation of such reconciliations for Darling Ingredients Inc. and the Company’s joint venture, Diamond Green Diesel, would require a forward-looking balance sheet, statement of income and statement of cash flow, prepared in accordance with GAAP for each entity, and such forward-looking financial statements are unavailable to the Company without unreasonable effort. The Company provides a range for its combined adjusted EBITDA outlook that it believes will be achieved; however, it cannot accurately predict all the components of the combined adjusted EBITDA calculation.






































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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,” “combined adjusted EBITDA guidance” 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 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, including the Russia-Ukraine war; 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.}