South Dakota Soybean Processors, LLC reported significant financial changes in its unaudited condensed consolidated financial statements for the period ending September 30, 2024. The company experienced a notable decline in revenue, with net revenues for the three months ending September 30, 2024, totaling $130.6 million, down 26.2% from $176.9 million in the same period of 2023. For the nine months ended September 30, 2024, revenues decreased by 19.7% to $428.6 million from $533.8 million in the prior year. This decline was primarily attributed to a sharp decrease in demand for soybean oil, particularly from the biofuels sector, alongside reduced prices for soybean oil and meal.

Gross profit for the three months ended September 30, 2024, fell to $2.3 million, an 88.7% decrease from $20.1 million in the same quarter of 2023. Similarly, net income for the three-month period was $438,570, down from $18.8 million in the previous year. For the nine-month period, net income dropped to $13.2 million from $51.2 million in 2023, reflecting a significant reduction in gross margins.

The company’s total assets increased to $525.5 million as of September 30, 2024, up from $424.7 million at the end of 2023, driven by a substantial rise in property and equipment, which reached $290.9 million, compared to $174.9 million previously. This increase is linked to ongoing investments in the construction of a new multi-seed processing plant near Mitchell, South Dakota, with $86.4 million contributed towards this project.

Total liabilities also rose significantly, with current liabilities increasing to $121.2 million from $105.6 million and long-term liabilities surging to $76.9 million from $22.9 million. Despite these increases, total members' equity improved to $327.3 million from $296.2 million, indicating a strengthening balance sheet.

The company reported a decrease in cash and cash equivalents to $59.3 million from $72.9 million at the end of 2023. Cash flows from operating activities fell sharply, reflecting a $48 million decrease largely due to reduced net income. However, cash flows from financing activities increased by $22.8 million, primarily due to a rise in net proceeds from borrowings.

Strategically, the company is consolidating its accounts with High Plains Processing, LLC, and has initiated a joint venture to build a new multi-seed crush facility, expected to be operational by late 2025. The ongoing construction and upgrades at the Volga plant are anticipated to enhance future operational efficiencies and capacity.