Tue, Nov 12, 3:03 PM (61 days ago)
For the quarter ending September 30, 2024, South Dakota Soybean Processors LLC (SDSP) reported significant declines in financial performance. Revenue decreased by 26.2% to $130.6 million, driven by reduced soybean product prices and a 12.8% decrease in soybean processing volumes due to an extended plant shutdown for upgrades. Gross profit plummeted 88.7% to $2.3 million, reflecting lower margins from decreased soybean oil demand, particularly from the biofuels sector, which faced overproduction issues. Net income attributable to the company fell sharply from $18.4 million in Q3 2023 to $23,390 in Q3 2024. For the nine-month period, net income dropped from $50.9 million to $11.5 million, influenced by similar trends in revenue and costs. Cash flows from operations also declined significantly, resulting in a working capital reduction to $59.1 million. The company increased its long-term debt to $55 million to finance investments in the High Plains Processing plant, which is expected to commence operations in fall 2025. Despite challenges, management anticipates improvements in Q4 2024 due to a strong local soybean crop and potential recovery in crush margins.