Darling Ingredients Inc. reported a significant decline in financial performance for the third quarter and the first nine months of fiscal 2024 compared to the same periods in 2023. For Q3 2024, total net sales were $1,421.9 million, down from $1,625.2 million in Q3 2023. Net sales to third parties also decreased to $1,157.1 million from $1,348.6 million year-over-year. The first nine months of 2024 saw total net sales of $4,297.5 million, a decrease from $5,174.0 million in the prior year.
The company's profitability was adversely affected, with net income for Q3 2024 dropping to $19.1 million from $128.1 million in Q3 2023. For the first nine months, net income fell to $182.1 million from $573.1 million. Basic income per share for Q3 2024 was $0.11, down from $0.78 in the same quarter of 2023, while for the nine months, it decreased to $1.11 from $3.52.
The decline in revenue and profitability was attributed to lower prices in the Feed Ingredients and Food Ingredients segments, particularly in collagen products, which offset increases in sales volumes. The Feed Ingredients segment reported a significant drop in operating income, down 61% to $30.5 million for Q3 2024. The Food Ingredients segment also experienced a 49.9% decrease in operating income to $30.3 million.
Darling Ingredients made strategic acquisitions, including the Miropasz Group for approximately $114.3 million in January 2024, and the Gelnex acquisition in March 2023 for about $1.2 billion, aimed at enhancing its capacity to serve collagen customers. The Gelnex acquisition contributed $66.9 million in net sales for Q3 2024 but reported a net loss of $50.8 million for the nine months.
The company’s financial position showed a decrease in cash and cash equivalents to $114.8 million as of September 28, 2024, down from $126.5 million at the end of 2023. Total current assets also fell to $1,496.9 million from $1,855.7 million. Current liabilities increased to $1,062.5 million from $998.1 million, leading to a decline in working capital to $434.4 million.
Darling Ingredients continues to face challenges from market volatility, particularly in commodity prices and foreign currency exchange rates, which could impact future performance. The company remains focused on integrating its recent acquisitions and managing its debt, which includes significant borrowings under its Amended Credit Agreement and Senior Notes.
About DARLING INGREDIENTS INC.
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