The following is a summary of the Darling Ingredients Inc. (DAR) Q1 2024 Earnings Call Transcript:
Financial Performance:
Darling Ingredients reported a Q1 2024 net income of $81.2 million, a decrease from Q1 2023's report of $185.8 million.
Net sales for Q1 2024 were $1.42 billion, a decrease when compared to Q1 2023's $1.79 billion.
Operating income decreased to $137.2 million for Q1 2024 from the $255.8 million reported in Q1 2023. This was accompanied by a decrease in gross margin by $120.6 million.
Business Progress:
The company has completed the acquisition of Miropasz, adding three poultry rendering plants to their portfolio.
The reopening of the company's Ward South Carolina rendering plant is expected to provide much-needed capacity in the Eastern United States.
They've identified a portfolio of collagen peptide profiles set to provide health and wellness benefits for new product launches.
They are also ahead of schedule in the construction of their sustainable aviation unit, estimated to start operations in Q4 2024.
Future strategies include potential share repurchases and possible dividends by 2025. Future investments may also include a prospective SAF 2 project slated for 2025, subject to improving margins and returns.
More details: Darling Ingredients IR
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