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Published: 2022-02-28 16:46:05 ET
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EX-99.1 2 exh991-pressreleaseq42021.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
FOR IMMEDIATE RELEASE
Feb. 28, 2022


Darling Ingredients Inc. Delivers Strong Fourth Quarter and Fiscal Year 2021 Financial Results;
Carries Momentum into 2022


Fourth Quarter 2021
•Net income of $155.8 million, or $0.94 per GAAP diluted share
•Net Sales of $1.3 billion
•Combined adjusted EBITDA of $306.8 million
•Global ingredients business EBITDA of $223.6 million

Fiscal Year 2021
•Net income of $650.9 million, or $3.90 per GAAP diluted share
•Net sales of $4.7 billion
•Combined adjusted EBITDA of $1.235 billion
•Global ingredients business record EBITDA of $851.4 million
•Diamond Green Diesel sold a record 370.2 million gallons of renewable diesel at an average of $2.07 EBITDA per gallon
•Valley Proteins acquisition will strengthen low carbon feedstock supply


IRVING, TEXAS - Darling Ingredients Inc. (NYSE: DAR) today reported net income of $155.8 million, or $0.94 per diluted share for fourth quarter 2021, compared to net income of $44.7 million, or $0.27 per diluted share, for fourth quarter 2020. The company also reported net sales of $1.3 billion for the fourth quarter of 2021, as compared with net sales of $1.0 billion for the same period a year ago.

“Q4 was an outstanding quarter, capping off another record year for Darling Ingredients, ” said Randall C. Stuewe, Chairman and Chief Executive Officer of Darling Ingredients Inc. “Robust demand in our feed segment aligned with increasing demand at Diamond Green Diesel (DGD) positions us well for strong performance in 2022.”

DGD sold a record 370 million gallons of renewable diesel in fiscal year 2021 at an average of $2.07 EBITDA per gallon. The DGD Norco, La. renewable diesel expansion project was commissioned in the fourth quarter and is operating above nameplate capacity.

“DGD is providing a solid return,” Stuewe added. “Our announced agreement to purchase Valley Proteins strategically positions us to provide low CI feedstocks to fuel growing demand for renewable diesel. It also opens the door to potential new export opportunities as our world drives toward decarbonization.”

The leverage ratio as measured by the company’s bank covenant was 1.57x at the end of the year. The company reduced its Term Loan B outstanding balance by $100 million during 2021. Capital expenditures totaled approximately $274 million in 2021. Repurchase of the company’s common stock totaled $167.7 million in 2021.








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February 28, 2022
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For the 2021 fiscal year, Darling reported net sales of $4.7 billion, as compared with net sales of $3.6 billion for 2020. Net income attributable to Darling for 2021 was $650.9 million, or $3.90 per diluted share, as compared to net income of $296.8 million, or $1.78 per diluted share, for 2020.

As of Jan. 1, 2022, Darling had $69.1 million in cash and cash equivalents, and $1.29 billion available under its committed revolving credit agreement. Total debt outstanding at the end of the fiscal year was $1.46 billion.

Combined adjusted EBITDA was $306.8 million for the fourth quarter of 2021, compared to $214.5 million for the same period in 2020. For the 2021 fiscal year, combined adjusted EBITDA totaled $1.235 billion, compared to $841.5 million for fiscal year 2020.












































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February 28, 2022
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Segment Financial Tables (in thousands)
(unaudited)
Three Months Ended January 1, 2022Feed IngredientsFood IngredientsFuel IngredientsCorporateTotal
Net sales$846,498 $344,677 $118,893 $— $1,310,068 
Cost of sales and operating expenses621,581 272,972 94,371 — 988,924 
Gross margin$224,917 $71,705 $24,522 $— $321,144 
Gain on sale of assets(60)(87)(18)— (165)
Selling, general and administrative expenses57,484 22,405 3,177 14,667 97,733 
Depreciation and amortization56,538 15,263 6,222 2,782 80,805 
Acquisition and integration costs— — — 1,396 1,396 
Equity in net income of Diamond Green Diesel— — 69,663 — 69,663 
Segment operating income/(loss)$110,955 $34,124 $84,804 $(18,845)$211,038 
Equity in net income of other unconsolidated subsidiaries$1,554 $— $— $— $1,554 
Segment income/(loss)$112,509 $34,124 $84,804 $(18,845)$212,592 
Segment EBITDA$167,493 $49,387 $21,363 $(14,667)$223,576 
DGD adjusted EBITDA (Darling's Share)$— $— $83,192 $— $83,192 
Combined adjusted EBITDA$167,493 $49,387 $104,555 $(14,667)$306,768 

Three Months Ended January 2, 2021Feed IngredientsFood IngredientsFuel IngredientsCorporateTotal
Net sales$572,764 $344,631 $102,444 $— $1,019,839 
Cost of sales and operating expenses426,593 268,348 76,251 — 771,192 
Gross margin$146,171 $76,283 $26,193 $— $248,647 
Loss/(gain) on sale of assets(274)512 (22)— 216 
Selling, general and administrative expenses56,289 26,000 5,369 14,459 102,117 
Restructuring and asset impairment charges— — 38,167 — 38,167 
Depreciation and amortization61,219 22,827 9,513 2,908 96,467 
Equity in net income of Diamond Green Diesel— — 62,684 — 62,684 
Segment operating income/(loss)$28,937 $26,944 $35,850 $(17,367)$74,364 
Equity in net income of other unconsolidated subsidiaries$726 $— $— $— $726 
Segment income/(loss)$29,663 $26,944 $35,850 $(17,367)$75,090 
Segment EBITDA$90,156 $49,771 $20,846 $(14,459)$146,314 
DGD adjusted EBITDA (Darling's Share)$— $— $68,171 $— $68,171 
Combined adjusted EBITDA$90,156 $49,771 $89,017 $(14,459)$214,485 




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Segment Financial Tables (in thousands) continued
(unaudited)
Twelve Months Ended January 1, 2022Feed IngredientsFood IngredientsFuel IngredientsCorporateTotal
Net sales$3,039,500 $1,271,629 $430,240 $— $4,741,369 
Cost of sales and operating expenses2,206,248 979,232 313,905 — 3,499,385 
Gross margin$833,252 $292,397 $116,335 $— $1,241,984 
Gain on sale of assets(550)(88)(320)— (958)
Selling, general and administrative expenses220,078 97,555 16,999 56,906 391,538 
Restructuring and asset impairment charges— — 778 — 778 
Depreciation and amortization218,942 60,929 25,436 11,080 316,387 
Acquisition and integration costs— — — 1,396 1,396 
Equity in net income of Diamond Green Diesel— — 351,627 — 351,627 
Segment operating income/(loss)$394,782 $134,001 $425,069 $(69,382)$884,470 
Equity in net income of other unconsolidated subsidiaries$5,753 $— $— $— $5,753 
Segment income/(loss)$400,535 $134,001 $425,069 $(69,382)$890,223 
Segment EBITDA$613,724 $194,930 $99,656 $(56,906)$851,404 
DGD adjusted EBITDA (Darling's Share)$— $— $383,419 $— $383,419 
Combined adjusted EBITDA$613,724 $194,930 $483,075 $(56,906)$1,234,823 

Twelve Months Ended January 2, 2021Feed IngredientsFood IngredientsFuel IngredientsCorporateTotal
Net sales$2,072,104 $1,185,701 $314,118 $— $3,571,923 
Cost of sales and operating expenses1,544,524 920,682 223,609 — 2,688,815 
Gross margin$527,580 $265,019 $90,509 $— $883,108 
Loss/(gain) on sale of assets19 482 (75)— 426 
Selling, general and administrative expenses209,748 97,406 16,014 55,328 378,496 
Restructuring and asset impairment charges— — 38,167 — 38,167 
Depreciation and amortization221,187 83,752 34,218 11,021 350,178 
Equity in net income of Diamond Green Diesel— — 315,095 — 315,095 
Segment operating income/(loss)$96,626 $83,379 $317,280 $(66,349)$430,936 
Equity in net income of other unconsolidated subsidiaries$3,193 $— $— $— $3,193 
Segment income/(loss)$99,819 $83,379 $317,280 $(66,349)$434,129 
Segment EBITDA$317,813 $167,131 $74,570 $(55,328)$504,186 
DGD adjusted EBITDA (Darling's Share)$— $— $337,348 $— $337,348 
Combined adjusted EBITDA$317,813 $167,131 $411,918 $(55,328)$841,534 











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Darling Ingredients Inc. and Subsidiaries
Consolidated Balance Sheets
January 1, 2022 and January 2, 2021
(in thousands)

January 1,January 2,
20222021
ASSETS(unaudited)
Current assets:
Cash and cash equivalents$68,906 $81,617 
Restricted cash166 103 
Accounts receivable, net469,092 405,387 
Inventories457,465 405,922 
Prepaid expenses53,711 47,793 
Income taxes refundable1,075 3,883 
Other current assets38,599 42,289 
Total current assets1,089,014 986,994 
Property, plant and equipment, net1,840,080 1,863,814 
Intangible assets, net397,801 473,680 
Goodwill1,219,116 1,260,240 
Investment in unconsolidated subsidiaries1,349,247 804,682 
Operating lease right-of-use assets155,464 146,563 
Other assets66,795 60,682 
Deferred income taxes16,211 16,676 
$6,133,728 $5,613,331 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt$24,407 $27,538 
Accounts payable, principally trade307,118 255,340 
Income taxes payable32,310 17,497 
Current operating lease liabilities38,168 39,459 
Accrued expenses350,681 335,471 
Total current liabilities752,684 675,305 
Long-term debt, net of current portion1,438,974 1,480,531 
Long-term operating lease liabilities120,314 109,707 
Other noncurrent liabilities111,029 117,371 
Deferred income taxes362,942 276,208 
Total liabilities2,785,943 2,659,122 
Commitments and contingencies
Total Darling's stockholders' equity3,280,960 2,891,909 
Noncontrolling interests66,825 62,300 
Total stockholders' equity3,347,785 2,954,209 
$6,133,728 $5,613,331 






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Darling Ingredients Inc. and Subsidiaries
Consolidated Operating Results
For the Three-Month and Twelve-Month Periods Ended January 1, 2022 and January 2, 2021
(in thousands, except per share data)


Three Months EndedTwelve Months Ended
(unaudited)$ Change(unaudited)$ Change
January 1,January 2,FavorableJanuary 1,January 2,Favorable
20222021(Unfavorable)20222021(Unfavorable)
Net sales$1,310,068 $1,019,839 $290,229 $4,741,369 $3,571,923 $1,169,446 
Costs and expenses:
Cost of sales and operating expenses988,924 771,192 (217,732)3,499,385 2,688,815 (810,570)
Loss (gain) on sale of assets
(165)216 381 (958)426 1,384 
Selling, general and administrative expenses
97,733 102,117 4,384 391,538 378,496 (13,042)
Restructuring and asset impairment charges— 38,167 38,167 778 38,167 37,389 
Depreciation and amortization80,805 96,467 15,662 316,387 350,178 33,791 
     Acquisition and integration costs1,396 — (1,396)1,396 — (1,396)
Total costs and expenses1,168,693 1,008,159 (160,534)4,208,526 3,456,082 (752,444)
Equity in net income of Diamond Green Diesel69,663 62,684 6,979 351,627 315,095 36,532 
Operating income211,038 74,364 136,674 884,470 430,936 453,534 
Other expense:
Interest expense(14,972)(16,883)1,911 (62,077)(72,686)10,609 
Foreign currency losses(900)(1,581)681 (2,199)(2,290)91 
Other expense, net(1,341)(256)(1,085)(4,551)(5,534)983 
Total other expense(17,213)(18,720)1,507 (68,827)(80,510)11,683 
Equity in net income of other unconsolidated subsidiaries1,554 726 828 5,753 3,193 2,560 
Income before income taxes195,379 56,370 139,009 821,396 353,619 467,777 
Income tax expense37,782 10,231 (27,551)164,106 53,289 (110,817)
Net income157,597 46,139 111,458 657,290 300,330 356,960 
Net income attributable to noncontrolling interests
(1,843)(1,394)(449)(6,376)(3,511)(2,865)
Net income attributable to Darling$155,754 $44,745 $111,009 $650,914 $296,819 $354,095 
Basic income per share:$0.96 $0.28 $0.68 $4.01 $1.83 $2.18 
Diluted income per share:$0.94 $0.27 $0.67 $3.90 $1.78 $2.12 
Number of diluted common shares:166,267 167,920 167,096 167,208 






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Darling Ingredients Inc. and Subsidiaries
Consolidated Statement of Cash Flows
Periods Ended January 1, 2022 and January 2, 2021
(in thousands)
Twelve Months Ended
(unaudited)
January 1,January 2,
Cash flows from operating activities:20222021
Net income$657,290 $300,330 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization316,387 350,178 
Deferred income taxes96,812 15,814 
Loss/(gain) on sale of assets(958)426 
Asset impairment138 37,802 
Decrease in long-term pension liability(4,742)(6,555)
Stock-based compensation expense21,837 23,222 
Write-off deferred loan costs1,130 3,052 
Deferred loan cost amortization4,038 5,357 
Equity in net income of Diamond Green Diesel and other unconsolidated subsidiaries(357,380)(318,288)
Distribution of earnings from Diamond Green Diesel and other unconsolidated subsidiaries4,611 207,328 
Changes in operating assets and liabilities, net of effects from acquisitions:
  Accounts receivable(79,954)22,362 
  Income taxes refundable/payable18,826 4,200 
  Inventories and prepaid expenses(72,919)(18,666)
  Accounts payable and accrued expenses84,580 11,200 
  Other14,724 (13,111)
Net cash provided by operating activities704,420 624,651 
Cash flows from investing activities:
Capital expenditures(274,126)(280,115)
Acquisition, net of cash acquired(2,059)(29,793)
Investment in Diamond Green Diesel(189,000)— 
Investment in other unconsolidated subsidiaries(4,449)— 
Loan to Diamond Green Diesel(25,000)— 
Gross proceeds from disposal of property, plant and equipment and other assets4,645 2,797 
Proceeds from insurance settlement— 293 
Payments related to routes and other intangibles(274)(3,810)
Net cash used by investing activities(490,263)(310,628)
Cash flows from financing activities:
Proceeds from long-term debt43,824 34,569 
Payments on long-term debt(142,133)(232,726)
Borrowings from revolving credit facility620,601 495,691 
Payments on revolving credit facility(515,424)(480,604)
Net cash overdraft financing(3,845)(37,692)
Deferred loan costs(3,809)(4,292)
Issuance of common stock50 67 
Repurchase of common stock(167,708)(55,044)
Minimum withholding taxes paid on stock awards(46,894)(11,918)
Acquisition of noncontrolling interest— (8,784)
Distributions to noncontrolling interests(6,022)(6,253)
Net cash used by financing activities(221,360)(306,986)
Effect of exchange rate changes on cash flows(5,445)1,638 
Net (decrease)/increase in cash, cash equivalents and restricted cash(12,648)8,675 
Cash, cash equivalents and restricted cash at beginning of year81,720 73,045 
Cash, cash equivalents and restricted cash at end of period$69,072 $81,720 
Supplemental disclosure of cash flow information:
Accrued capital expenditures$6,585 $(4,967)
Cash paid during the period for:
Interest, net of capitalized interest$58,449 $66,216 
Income taxes, net of refunds$46,399 $36,779 
Non-cash operating activities:
Operating lease right of use asset obtained in exchange for new lease liabilities$56,642 $58,052 
Non-cash financing activities:
Debt issued for service contract assets$126 $8,123 


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Diamond Green Diesel Joint Venture
Condensed Consolidated Balance Sheets
December 31, 2021 and December 31, 2020
(in thousands)
December 31,December 31,
20212020
Assets:
Total current assets$686,294 $383,557 
Property, plant and equipment, net2,710,747 1,238,726 
Other assets51,514 36,082 
Total assets$3,448,555 $1,658,365 
Liabilities and members' equity:
Total current portion of long term debt$165,092 $517 
Total other current liabilities295,860 99,787 
Total long term debt344,309 8,705 
Total other long term liabilities17,531 3,758 
Total members' equity2,625,763 1,545,598 
Total liabilities and members' equity$3,448,555 $1,658,365 


Diamond Green Diesel Joint Venture
Operating Financial Results
For the Three-Month and Twelve-Month Periods Ended December 31, 2021 and December 31, 2020
(in thousands)



Three Months EndedTwelve Months Ended
(unaudited)$ Change$ Change
December 31,December 31,FavorableDecember 31,December 31,Favorable
20212020(Unfavorable)20212020(Unfavorable)
Revenues:
Operating revenues$936,940 $266,760 $670,180 $2,342,332 $1,267,477 $1,074,855 
Expenses:
Total costs and expenses less depreciation, amortization and accretion expense
770,555 130,417 (640,138)1,575,494 592,781 (982,713)
Depreciation, amortization and accretion expense
23,653 11,222 (12,431)58,326 44,882 (13,444)
Total costs and expenses794,208 141,639 (652,569)1,633,820 637,663 (996,157)
Operating income142,732 125,121 17,611 708,512 629,814 78,698 
Other income154 560 (406)678 1,636 (958)
Interest and debt expense, net(3,560)(313)(3,247)(5,936)(1,260)(4,676)
Net income$139,326 $125,368 $13,958 $703,254 $630,190 $73,064 







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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 to Foreign Currency
For the Three-Month and Twelve-Month Periods Ended January 1, 2022 and January 2, 2021
(unaudited)
Three Months EndedTwelve Months Ended
Adjusted EBITDAJanuary 1,January 2,January 1,January 2,
(U.S. dollars in thousands)2022202120222021
Net income attributable to Darling$155,754 $44,745 $650,914 $296,819 
Depreciation and amortization80,805 96,467 316,387 350,178 
Interest expense14,972 16,883 62,077 72,686 
Income tax expense37,782 10,231 164,106 53,289 
Restructuring and asset impairment charges— 38,167 778 38,167 
Acquisition and integration costs1,396 — 1,396 — 
Foreign currency loss900 1,581 2,199 2,290 
Other expense, net1,341 256 4,551 5,534 
Equity in net income of Diamond Green Diesel(69,663)(62,684)(351,627)(315,095)
Equity in net income of other unconsolidated subsidiaries(1,554)(726)(5,753)(3,193)
Net income attributable to other noncontrolling interests1,843 1,394 6,376 3,511 
Adjusted EBITDA (Non-GAAP)$223,576 $146,314 $851,404 $504,186 
Foreign currency exchange impact2,903 (1)— (18,888)(2)— 
Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP)$226,479 $146,314 $832,516 $504,186 
DGD Joint Venture Adjusted EBITDA (Darling's share)$83,192 $68,171 $383,419 $337,348 
Darling plus Darling's share of DGD Joint Venture Adjusted EBITDA$306,768 $214,485 $1,234,823 $841,534 
(1) The average rate assumption used in the calculation was the actual fiscal average rate for the three months ended January 1, 2022 of €1.00:USD$1.14 and CAD$1.00:USD$0.79 as compared to the average rate for the three months ended January 2, 2021 of €1.00:USD$1.19 and CAD$1.00:USD $0.77, respectively. (2) The average rate assumption used in this calculation was the actual fiscal average rate for the twelve months ended January 1, 2022 of €1.00:USD$1.18 and CAD$1.00:USD$0.80 as compared to the average rate for the twelve months ended January 2, 2021 of €1.00:USD$1.14 and CAD$1.00:USD $0.75, respectively.

About Darling
Darling Ingredients Inc. (NYSE: DAR) is the largest publicly traded company turning food waste into sustainable products and a leading producer of renewable energy. Recognized as a sustainability leader, the company operates 250 plants in 17 countries and repurposes nearly 10% 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. Follow us on LinkedIn.

Darling Ingredients Inc. will host a conference call to discuss the Company’s fourth quarter and fiscal year 2021 financial results at 9 a.m. Eastern Time (8 a.m. Central Time) on Tuesday, March 1, 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 refer to access code 10163722. Please call approximately ten minutes before the start of the call to ensure that you are connected.


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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 March 8, 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 82060219. 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 January 1, 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, 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 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



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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; failure to close on strategic acquisitions, such as Valley Proteins; 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.}