IRVING, Texas - Darling Ingredients Inc. (NYSE: NYSE:DAR) has launched a new collagen peptide, Nextida™ GC, which has been clinically shown to lower post-meal glucose spikes in healthy individuals. The company's research, conducted through its Rousselot brand, indicated that doses of 5 grams or 10 grams taken orally 30 minutes before a meal can decrease blood glucose spikes by an average of 42%.
The development of Nextida GC marks Darling Ingredients' entry into producing collagen-based products with specific health benefits. "Darling Ingredients has unlocked the next wave of collagen-based solutions that are truly revolutionary," said Randall C. Stuewe, Chairman and CEO of Darling Ingredients. He added that the product is the result of a proprietary process and is one of many collagen solutions the company is planning to offer, with patents pending.
The trial involved 16 healthy individuals who experienced a reduced post-meal glucose spike of 43% with a 5-gram dose and 40% with a 10-gram dose. These results highlight the potential of Nextida GC as a supplement to assist in managing blood sugar levels post-consumption.
Darling Ingredients, a company specializing in transforming animal agriculture and food industry by-products into valuable ingredients, operates over 260 facilities worldwide. It processes approximately 15% of the world's animal agricultural by-products and produces about 30% of the world's collagen.
This announcement comes with the usual caution regarding forward-looking statements, reminding stakeholders that the results and plans mentioned are subject to risks, uncertainties, and assumptions. The company does not commit to updating any forward-looking statements post-release.
The introduction of Nextida GC is based on a press release statement and offers a glimpse into the ongoing efforts by Darling Ingredients to innovate in the health and wellness sector through scientific research and product development.
In other recent news, Darling Ingredients has been the subject of several analyst adjustments. Jefferies reduced the price target from $47 to $44, citing potential near-term pressures and a likely revision of the full-year 2024 guidance. Citi also adjusted its target to $46, flagging a possible guidance reduction. TD Cowen revised its target to $43 while maintaining a Hold rating. Despite the adjustments, Baird maintained an Outperform rating with a steady price target of $60.
In the realm of earnings and revenue, analysts project that Darling Ingredients' third-quarter EBITDA might fall short of consensus, and a downward revision of its 2024 EBITDA guidance from the current $1.3-1.4 billion to less than $1.2 billion is anticipated. The company had reported strong second-quarter results, with an EBITDA of $274 million, net income of $78.9 million, and net sales totaling $1.5 billion.
Recent company news includes the appointment of Randy Hill as an independent director to its board, enhancing its financial analysis and global reporting capabilities. Also, the company's joint venture, Diamond Green Diesel, secured a contract to supply sustainable aviation fuel to John F. Kennedy International Airport, aligning with plans to upgrade nearly half of its 470 million gallon annual capacity to sustainable aviation fuel by 2024. These are the recent developments in Darling Ingredients.
InvestingPro Insights
Darling Ingredients' launch of Nextida™ GC represents a strategic move into the high-value collagen market, potentially opening new revenue streams. However, InvestingPro data reveals some challenges the company faces. With a market cap of $5.96 billion, Darling Ingredients has seen a revenue decline of 13.44% over the last twelve months as of Q2 2024, with quarterly revenue dropping by 17.2% in Q2 2024.
Despite these headwinds, the company maintains a solid financial position. An InvestingPro Tip indicates that Darling Ingredients' liquid assets exceed short-term obligations, suggesting financial stability as it ventures into new product lines. Additionally, the company's P/E ratio of 16.17 implies that investors are still willing to pay a premium for its shares, possibly due to growth prospects like Nextida™ GC.
Another InvestingPro Tip notes that analysts expect the company to remain profitable this year, which aligns with Darling Ingredients' expansion into specialized collagen products. This positive outlook is further supported by the company's gross profit margin of 23.77% for the last twelve months as of Q2 2024, indicating a healthy ability to convert revenue into profit.
For investors seeking a deeper understanding of Darling Ingredients' financial health and growth potential, InvestingPro offers 6 additional tips, providing a comprehensive analysis to inform investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.