BBH Select Mid Cap ETF on Darling Ingredients, Inc.
Thesis
BBH continues to own Darling after trimming the position on strength early in the quarter. The company's core Feed and Food operations produced better-than-expected results, while margins also improved at its Diamond Green Diesel joint venture with Valero. Newly finalized government mandates provide greater certainty and should support both renewable diesel margins and Feed pricing. BBH expects the financial benefit of these developments to become increasingly visible in subsequent results.
“Darling is extremely well-positioned for significantly improved profitability.”
Key risks
- Sensitivity of renewable diesel economics to energy and oil prices