Q2 2024 Darling Ingredients Inc Earnings Call Transcript
Key Points
- Improved gross margins and controlled capital spending without sacrificing operational excellence.
- Sequential improvement in feed business margins due to adjustments in raw material procurement and cost-cutting programs.
- Received a significant cash dividend of $77.1 million from the Diamond Green Diesel (DGD) joint venture.
- Sustainable aviation fuel unit is ahead of schedule and on budget, with an anticipated startup in Q4 2024.
- Optimistic outlook for the second half of 2024, with expectations of delivering $1.3 to $1.4 billion of combined adjusted EBITDA.
- Net income for Q2 2024 significantly decreased to $78.9 million from $252.4 million in Q2 2023.
- Net sales for Q2 2024 dropped to $1.5 billion from $1.8 billion in Q2 2023.
- Operating income for Q2 2024 decreased by $208.2 million compared to Q2 2023.
- Challenges in the renewable diesel market due to perceived overcapacity and uncertain regulatory environment.
- Customer destocking in the food segment, particularly in the gelatin and hydrolyzed collagen market, impacting revenue.
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Good morning and welcome to the Darling Ingredients Inc c onference call to discuss the company's second quarter 2024 financial results.
After the speakers' prepared remarks, there will be a question and answer session period and instructions to ask a question will be given at that time. Today's call is being recorded. I would now like to turn the call over to Ms. Suman . Please go ahead.
Great. Thank you for joining the Darling Ingredients Second Quarter 2024 earnings call. . Here with me today are Mr. Randall C. Stuewe, Chairman and Chief Executive Officer, Mr. Bass, our Chief Financial Officer, Mr. Bob Dey, Chief Strategy Officer, and Mr. Matt Johnson, Chief Operating Officer of North America for the second quarter 2020 core earnings news release and slide presentation are available on the Investor page under the Events and Presentations tab on our corporate website and will be
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