Company: SDSYA
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001163609-25-000017
Chunk: 29

Company: SOUTH DAKOTA SOYBEAN PROCESSORS LLC
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 2
Chunk 29
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Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Forward-Looking Statements

The information in this quarterly report on Form 10-Q for the three-month period ended March 31, 2025, (including reports filed with the Securities and Exchange Commission (the “SEC” or “Commission”), contains “forward-looking statements” that deal with future results, expectations, plans and performance, and should be read in conjunction with the financial statements and Annual Report on Form 10-K for the year ended December 31, 2024. Forward-looking statements may include statements which use words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “predict,” “hope,” “will,” “should,” “could,” “may,” “future,” “potential,” or the negatives of these words, and all similar expressions. Forward-looking statements involve numerous assumptions, risks and uncertainties. Actual results or actual business or other conditions may differ materially from those contemplated by any forward-looking statements. Factors that could cause actual results to differ materially from the forward-looking statements are identified in our Form 10-K for the year ended December 31, 2024.

We are not under any duty to update the forward-looking statements contained in this report, nor do we guarantee future results or performance or what future business conditions will be like. We caution you not to put undue reliance on any forward-looking statements, which speak only as of the date of this report.

Executive Overview and Summary

Our consolidated net income for the three-months ended March 31, 2025 decreased from $6.1 million in 2024 to $4.1 million in 2025. The Chicago Board Crush, a key measure of soybean processing profitability published by the Chicago Board of Trade, has edged slightly lower compared to the previous three-month period. A softening in demand for soybean oil was the principal cause for the decrease in net income. 

Regulatory developments and uncertainty tied to biofuels programs also played a role. While the full implications of the 45Z production credit for clean transportation fuel remains unclear, market sentiment suggests a strong desire to expand renewable fuel output and to address the increasing volume of used cooking oil imports.

Looking ahead, the market in 2025 appears to be gradually adapting to the challenges encountered in 2024. Soybean meal and oil exports are currently tracking at a record-setting pace, although the potential for