EX-99.1 2 exh991-pressreleaseq22021.htm EX-99.1 PRESS RELEASE

Document

EXHIBIT 99.1

    News Release

DARLING INGREDIENTS INC. REPORTS SECOND QUARTER 2021 FINANCIAL RESULTS

IRVING, TEXAS, August 10, 2021/PRNewswire/ Darling Ingredients Inc. (NYSE: DAR, “Darling”) --

Second Quarter 2021

•Net income of $196.6 million, or $1.17 per GAAP diluted share

•Net Sales of $1.2 billion

•Combined adjusted EBITDA of $353.7 million

•Global Ingredients business reported a record Q2 EBITDA of $221.7 million

•Renewable diesel JV, DGD generated a record quarter, contributing $132.0 million of EBITDA to Darling

•Darling repurchased approximately $76 million of common stock in the second quarter

•Darling trailing twelve-month combined adjusted EBITDA surpasses $1 billion, first time in company history

•DGD Norco, LA 400 million gallon renewable diesel project on track to be fully operational in middle of Q4 2021

•DGD Port Arthur, TX 470 million gallon renewable diesel project expected completion now in first half of 2023

Darling reported net sales of $1.2 billion for the second quarter of 2021, as compared with net sales of $848.7 million for the same period a year ago. Net income attributable to Darling for the three months ended July 3, 2021 was $196.6 million, or $1.17 per diluted share, compared to net income of $65.4 million, or $0.39 per diluted share, for the second quarter of 2020.

“Our global ingredients business continues to perform at the highest levels producing a record adjusted EBITDA of approximately $222 million for the second quarter,” said Randall C. Stuewe, Chairman and Chief Executive Officer of Darling Ingredients Inc. “We continue to see positive signs of strength in a recovering economy both here in North America and around the world which should provide for sustained demand for food, feed and fuel, empowering Darling to take advantage of our leadership position in the industry.”

“Darling’s 2021 first half financial performance was strong, as we generated a combined adjusted EBITDA of $638.5 million and with the continued strength of commodity pricing for our global ingredients business expected through the rest of 2021, and the 400 million gallon renewable diesel expansion of DGD Norco, LA starting up in the near term, we are once again increasing our combined adjusted EBITDA guidance for 2021 to approximately $1.275 billion,” commented Stuewe.

Under Darling’s current share repurchase authorization, the Company repurchased 1.14 million shares of common stock during the second quarter for a total of $75.7 million. Darling has approximately $124.3 million remaining under its current authorization.

For the six months ended July 3, 2021, Darling reported net sales of $2.25 billion, as compared with net sales of $1.7 billion for the same period of 2020. Net Income attributable to Darling for the first six months of 2021 was $348.3 million, or $2.08 per diluted share, as compared to a net income of $150.9 million, or $0.90 per diluted share, for the first six months of 2020.

News Release August 10, 2021 Page 2

As of July 3, 2021, Darling had $77.9 million in cash and cash equivalents, and $902.1 million available under its committed revolving credit agreement. Total debt outstanding as of July 3, 2021 was $1.4 billion. Capital expenditures (exclusive of DGD investments) of $126.1 million were made during the first six months of fiscal 2021, compared to $123.2 million in the first six months of fiscal 2020.

Combined adjusted EBITDA was $353.7 million for the second quarter of 2021, compared to $195.2 million for the same period in 2020. On a year-to-date basis, combined adjusted EBITDA totaled $638.5 million for 2021, compared to $408.5 million on a year-to-date basis for 2020.

News Release August 10, 2021 Page 3

Segment Financial Tables (in thousands)

(unaudited)

Three Months Ended July 3, 2021			Feed Ingredients			Food Ingredients			Fuel Ingredients			Corporate			Total
Net sales			$	771,932		$	317,031		$	109,706		$	—		$	1,198,669
Cost of sales and operating expenses			556,424			238,539			83,110			—			878,073
Gross margin			$	215,508		$	78,492		$	26,596		$	—		$	320,596
Gain on sale of assets			(122)			(48)			(58)			—			(228)
Selling, general and administrative expenses			54,977			25,542			4,474			14,139			99,132
Depreciation and amortization			53,971			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 subsidiaries			$	1,940		$	—		$	—		$	—		$	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

Three Months Ended June 27, 2020			Feed Ingredients			Food Ingredients			Fuel Ingredients			Corporate			Total
Net sales			$	503,690		$	278,934		$	66,049		$	—		$	848,673
Cost of sales and operating expenses			367,902			220,159			44,286			—			632,347
Gross margin			$	135,788		$	58,775		$	21,763		$	—		$	216,326
Loss/(gain) on sale of assets			76			(48)			(1)			—			27
Selling, general and administrative expenses			50,484			22,564			3,953			13,192			90,193
Depreciation and amortization			52,683			19,972			7,980			2,675			83,310
Equity in net income of Diamond Green Diesel			—			—			63,492			—			63,492
Segment operating income/(loss)			$	32,545		$	16,287		$	73,323		$	(15,867)		$	106,288
Equity in net income of other unconsolidated subsidiaries			$	692		$	—		$	—		$	—		$	692
Segment income/(loss)			$	33,237		$	16,287		$	73,323		$	(15,867)		$	106,980
Segment EBITDA			$	85,228		$	36,259		$	17,811		$	(13,192)		$	126,106
DGD Adjusted EBITDA (Darling's Share)			$	—		$	—		$	69,108		$	—		$	69,108
Combined adjusted EBITDA			$	85,228		$	36,259		$	86,919		$	(13,192)		$	195,214

News Release August 10, 2021 Page 4

Segment Financial Tables (in thousands) continued

(unaudited)

Six Months Ended July 3, 2021			Feed Ingredients			Food Ingredients			Fuel Ingredients			Corporate			Total
Net sales			$	1,423,376		$	615,096		$	206,913		$	—		$	2,245,385
Cost of sales and operating expenses			1,031,005			464,952			154,900			—			1,650,857
Gross margin			$	392,371		$	150,144		$	52,013		$	—		$	594,528
Loss/(gain) on sale of assets			(261)			7			(38)			—			(292)
Selling, general and administrative expenses			107,597			50,733			9,341			28,859			196,530
Restructuring and asset impairment charges			—			—			778			—			778
Depreciation and amortization			108,580			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 subsidiaries			$	2,552		$	—		$	—		$	—		$	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

Six Months Ended June 27, 2020			Feed Ingredients			Food Ingredients			Fuel Ingredients			Corporate			Total
Net sales			$	1,016,315		$	549,228		$	135,972		$	—		$	1,701,515
Cost of sales and operating expenses			756,355			425,589			97,311			—			1,279,255
Gross margin			$	259,960		$	123,639		$	38,661		$	—		$	422,260
Loss/(gain) on sale of assets			126			(46)			8			—			88
Selling, general and administrative expenses			104,431			48,040			5,607			28,308			186,386
Depreciation and amortization			106,204			40,277			16,072			5,428			167,981
Equity in net income of Diamond Green Diesel			—			—			161,312			—			161,312
Segment operating income/(loss)			$	49,199		$	35,368		$	178,286		$	(33,736)		$	229,117
Equity in net income of other unconsolidated subsidiaries			$	1,561		$	—		$	—		$	—		$	1,561
Segment income/(loss)			$	50,760		$	35,368		$	178,286		$	(33,736)		$	230,678
Segment EBITDA			$	155,403		$	75,645		$	33,046		$	(28,308)		$	235,786
DGD Adjusted EBITDA (Darling's Share)			$	—		$	—		$	172,742		$	—		$	172,742
Combined adjusted EBITDA			$	155,403		$	75,645		$	205,788		$	(28,308)		$	408,528

News Release August 10, 2021 Page 5

Darling Ingredients Inc. and Subsidiaries

Consolidated Balance Sheets

July 3, 2021 and January 2, 2021

(in thousands)

						July 3,						January 2,
						2021						2021
ASSETS						(unaudited)
Current assets:
			Cash and cash equivalents			$	77,741					$	81,617
			Restricted cash			177						103
			Accounts receivable, net			433,441						405,387
			Inventories			428,203						405,922
			Prepaid expenses			58,648						47,793
			Income taxes refundable			2,636						3,883
			Other current assets			21,734						42,289
			Total current assets			1,022,580						986,994
Property, plant and equipment, net						1,846,814						1,863,814
Intangible assets, net						439,035						473,680
Goodwill						1,245,549						1,260,240
Investment in unconsolidated subsidiaries						1,037,436						804,682
Operating lease right-of-use assets						165,034						146,563
Other assets						61,000						60,682
Deferred income taxes						15,875						16,676
						$	5,833,323					$	5,613,331
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
			Current portion of long-term debt			$	41,603					$	27,538
			Accounts payable, principally trade			264,447						255,340
			Income taxes payable			25,096						17,497
			Current operating lease liabilities			40,228						39,459
			Accrued expenses			320,838						335,471
			Total current liabilities			692,212						675,305
Long-term debt, net of current portion						1,393,798						1,480,531
Long-term operating lease liabilities						126,527						109,707
Other noncurrent liabilities						115,510						117,371
Deferred income taxes						321,466						276,208
			Total liabilities			2,649,513						2,659,122
Commitments and contingencies
Total Darling's stockholders' equity						3,118,576						2,891,909
Noncontrolling interests						65,234						62,300
			Total stockholders' equity			$	3,183,810					$	2,954,209
						$	5,833,323					$	5,613,331

News Release August 10, 2021 Page 6

Darling Ingredients Inc. and Subsidiaries

Consolidated Operating Results

For the Three-Month and Six-Month Periods Ended July 3, 2021 and June 27, 2020

(in thousands, except per share data)

			Three Months Ended																					Six Months Ended
			(unaudited)												$ Change									(unaudited)												$ Change
			July 3,						June 27,						Favorable									July 3,						June 27,						Favorable
			2021						2020						(Unfavorable)									2021						2020						(Unfavorable)
Net sales			$	1,198,669					$	848,673					$	349,996								$	2,245,385					$	1,701,515					$	543,870
Costs and expenses:
Cost of sales and operating expenses			878,073						632,347						(245,726)									1,650,857						1,279,255						(371,602)
Loss (gain) on sale of assets			(228)						27						255									(292)						88						380
Selling, general and administrative expenses			99,132						90,193						(8,939)									196,530						186,386						(10,144)
Restructuring and asset impairment charges			—						—						—									778						—						(778)
Depreciation and amortization			79,222						83,310						4,088									157,756						167,981						10,225
Total costs and expenses			1,056,199						805,877						(250,322)									2,005,629						1,633,710						(371,919)
Equity in net income of Diamond Green Diesel			125,788						63,492						62,296									228,013						161,312						66,701
Operating income			268,258						106,288						161,970									467,769						229,117						238,652
Other expense:
Interest expense			(15,268)						(17,920)						2,652									(31,696)						(37,010)						5,314
Foreign currency gain/(loss)			(684)						(1,134)						450									(1,094)						530						(1,624)
Other expense, net			(1,198)						(1,485)						287									(2,357)						(3,366)						1,009
Total other expense			(17,150)						(20,539)						3,389									(35,147)						(39,846)						4,699
Equity in net income of other unconsolidated subsidiaries			1,940						692						1,248									2,552						1,561						991
Income from operations before income taxes			253,048						86,441						166,607									435,174						190,832						244,342
Income tax expense			54,979						19,946						(35,033)									83,687						38,246						(45,441)
Net income			198,069						66,495						131,574									351,487						152,586						198,901
Net income attributable to noncontrolling interests			(1,487)						(1,056)						(431)									(3,139)						(1,637)						(1,502)
Net income attributable to Darling			$	196,582					$	65,439					$	131,143								$	348,348					$	150,949					$	197,399
Basic income per share:			$	1.21					$	0.40					$	0.81								$	2.14					$	0.93					$	1.21
Diluted income per share:			$	1.17					$	0.39					$	0.78								$	2.08					$	0.90					$	1.18
Number of diluted common shares:			167,597						165,999															167,673						166,963

News Release August 10, 2021 Page 7

Darling Ingredients Inc. and Subsidiaries

Consolidated Statement of Cash Flows

Periods Ended July 3, 2021 and June 27, 2020

(in thousands)

(unaudited)

			Six Months Ended
			July 3,						June 27,
Cash flows from operating activities:			2021						2020
Net income			$	351,487					$	152,586
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			157,756						167,981
Loss/(gain) on sale of assets			(292)						88
Asset impairment			138						—
Deferred taxes			49,572						13,998
Decrease in long-term pension liability			(622)						(890)
Stock-based compensation expense			14,011						15,566
Write-off deferred loan costs			598						—
Deferred loan cost amortization			2,047						2,835
Equity in net income of Diamond Green Diesel and other unconsolidated subsidiaries			(230,565)						(162,873)
Distribution of earnings from Diamond Green Diesel and other unconsolidated subsidiaries			2,497						125,891
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable			(34,911)						26,077
Income taxes refundable/payable			9,116						6,119
Inventories and prepaid expenses			(39,992)						(35,413)
Accounts payable and accrued expenses			2,770						(33,375)
Other			14,327						(14,941)
Net cash provided by operating activities			297,937						263,649
Cash flows from investing activities:
Capital expenditures			(126,094)						(123,204)
Acquisition, net of cash acquired			(2,059)						—
Investment in unconsolidated subsidiary			(4,449)						—
Gross proceeds from disposal of property, plant and equipment and other assets			3,064						1,053
Payments related to routes and other intangibles			(347)						(3,712)
Net cash used by investing activities			(129,885)						(125,863)
Cash flows from financing activities:
Proceeds from long-term debt			20,679						16,164
Payments on long-term debt			(73,393)						(18,239)
Borrowings from revolving credit facility			207,000						375,971
Payments on revolving credit facility			(220,000)						(405,800)
Net cash overdraft financing			16,487						(26,461)
Issuance of common stock			50						67
Repurchase of common stock			(75,663)						(55,044)
Minimum withholding taxes paid on stock awards			(43,853)						(4,863)
Acquisition of noncontrolling interest			—						(8,784)
Distributions to noncontrolling interests			(2,164)						(987)
Net cash used by financing activities			(170,857)						(127,976)
Effect of exchange rate changes on cash flows			(997)						(6,567)
Net increase/ (decrease) in cash, cash equivalents and restricted cash			(3,802)						3,243
Cash, cash equivalents and restricted cash at beginning of period			81,720						73,045
Cash, cash equivalents and restricted cash at end of period			$	77,918					$	76,288
Supplemental disclosure of cash flow information:
Accrued capital expenditures			$	1,101					$	23
Cash paid during the period for:
Interest, net of capitalized interest			$	29,928					$	35,070
Income taxes, net of refunds			$	25,270					$	18,030
Non-cash operating activities:
Operating lease right of use asset obtained in exchange for new lease liabilities			$	44,218					$	28,801
Non-cash financing activities:
Debt issued for service contract assets			$	60					$	21

News Release August 10, 2021 Page 8

Diamond Green Diesel Joint Venture

Condensed Consolidated Balance Sheets

June 30, 2021 and December 31, 2020

(in thousands)

			June 30,						December 31,
			2021						2020
			(unaudited)
Assets:
Total current assets			$	464,631					$	383,557
Property, plant and equipment, net			1,727,979						1,238,726
Other assets			35,369						36,082
Total assets			$	2,227,979					$	1,658,365
Liabilities and members' equity:
Total current portion of long term debt			$	581					$	517
Total other current liabilities			205,484						99,787
Total long term debt			8,635						8,705
Total other long term liabilities			8,555						3,758
Total members' equity			2,004,724						1,545,598
Total liabilities and members' equity			$	2,227,979					$	1,658,365

Diamond Green Diesel Joint Venture

Operating Financial Results

For the Three-Month and Six-Month Periods Ended June 30, 2021 and June 30, 2020

(in thousands)

			Three Months Ended																					Six Months Ended
			(unaudited)												$ Change									(unaudited)												$ Change
			June 30,						June 30,						Favorable									June 30,						June 30,						Favorable
			2021						2020						(Unfavorable)									2021						2020						(Unfavorable)
Revenues:
Operating revenues			$	571,859					$	295,826					$	276,033								$	1,003,492					$	654,441					$	349,051
Expenses:
Total costs and expenses less depreciation, amortization and accretion expense			307,857						157,611						(150,246)									523,091						308,958						(214,133)
Depreciation, amortization and accretion expense			11,995						11,114						(881)									23,682						22,888						(794)
Total costs and expenses			319,852						168,725						(151,127)									546,773						331,846						(214,927)
Operating income			252,007						127,101						124,906									456,719						322,595						134,124
Other income			353						200						153									411						661						(250)
Interest and debt expense, net			(784)						(317)						(467)									(1,104)						(632)						(472)
Net income			$	251,576					$	126,984					$	124,592								$	456,026					$	322,624					$	133,402

News Release August 10, 2021 Page 9

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 3, 2021 and June 27, 2020

			Three Months Ended												Six Months Ended
Adjusted EBITDA			July 3,						June 27,						July 3,						June 27,
(U.S. dollars in thousands)			2021						2020						2021						2020
Net income attributable to Darling			$	196,582					$	65,439					$	348,348					$	150,949
Depreciation and amortization			79,222						83,310						157,756						167,981
Interest expense			15,268						17,920						31,696						37,010
Income tax expense			54,979						19,946						83,687						38,246
Restructuring and impairment charges			—						—						778						—
Foreign currency loss/(gain)			684						1,134						1,094						(530)
Other expense, net			1,198						1,485						2,357						3,366
Equity in net income of Diamond Green Diesel			(125,788)						(63,492)						(228,013)						(161,312)
Equity in net income of other unconsolidated subsidiaries			(1,940)						(692)						(2,552)						(1,561)
Net income attributable to other noncontrolling interests			1,487						1,056						3,139						1,637
Adjusted EBITDA (Non-GAAP)			$	221,692					$	126,106					$	398,290					$	235,786
Foreign currency exchange impact			(11,493)			(1)			—						(19,542)			(2)			—
Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP)			$	210,199					$	126,106					$	378,748					$	235,786
DGD Joint Venture Adjusted EBITDA (Darling's share)			$	132,001					$	69,108					$	240,201					$	172,742
Darling plus Darling's share of DGD Joint Venture Adjusted EBITDA			$	353,693					$	195,214					$	638,491					$	408,528
(1) The average rate assumption used in the calculation was the actual fiscal average rate for the three months ended July 3, 2021 of €1.00:USD$1.21 and CAD$1.00:USD$0.81 as compared to the average rate for the three months ended June 27, 2020 of €1.00:USD$1.10 and CAD$1.00:USD $0.72, respectively. (2) The average rate assumption used in this calculation was the actual fiscal average rate for the six months ended July 3, 2021 of €1.00:USD$1.20 and CAD$1.00:USD$0.80 as compared to the average rate for the six months ended June 27, 2020 of €1.00:USD$1.10 and CAD$1.00:USD $0.73, respectively.

About Darling

Darling Ingredients Inc. (NYSE: DAR) is a world leading producer of organic ingredients, generating 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. Darling Ingredients named one of the 50 Sustainability and Climate Leaders in 2021, to learn more

Darling Ingredients: The greenest Company on the planet - 50 Sustainability & Climate Leaders (50climateleaders.com). The Company sells its ingredients 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 venture partner in Diamond Green Diesel (DGD), North America's largest renewable diesel manufacturer, currently producing approximately 290 million gallons of renewable diesel annually which products reduce Greenhouse Gas (GHG) emissions by up to 85% compared to fossil fuels. For additional information, visit the Company's website at

http://www.darlingii.com.

News Release August 10, 2021 Page 10

Darling Ingredients Inc. will host a conference call to discuss the Company’s second quarter 2021 financial results at 9:00 am Eastern Time (8:00 am Central Time) on Wednesday, August 11, 2021. 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 10158835. 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 August 18, 2021, 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 10158835. 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, 5.25% Notes and 3.625% Notes that were outstanding at July 3, 2021. 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.

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.

News Release August 10, 2021 Page 11

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 projects; 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