Sadot Group Inc. Reports Fourth Quarter and Full Year 2024 Results

Rhea-AI Summary

Sadot Group Inc. (NASDAQ:SDOT) reported strong financial results for Q4 and FY 2024, marking its first-ever yearly positive net income. The company achieved Q4 net income of $0.7 million, compared to a $1.9 million loss in the prior year period, with EBITDA rising to $2.2 million.

For the full year 2024, Sadot Group delivered:

• Net income of $4.0 million (vs. $7.8 million loss in 2023)
• EBITDA of $8.9 million (vs. $6.2 million loss in 2023)
• Consolidated revenue of $700.9 million
• Diluted EPS of $0.86 (vs. loss of $2.24 in 2023)

Operational highlights include completing 144 transactions of over 1.7 million metric tons of agri-commodities across 33 countries, launching Sadot Canada operations, and converting company-owned restaurants to franchise-owned locations. The company also expanded into the pet food ingredient market and strengthened its leadership team with industry veterans.

Positive

• First-ever yearly positive net income of $4.0 million
• Q4 EBITDA improved to $2.2 million from -$2.0 million YoY
• Full-year EBITDA of $8.9 million vs -$6.2 million in 2023
• Significant EPS improvement to $0.86 from -$2.24 in 2023
• Successful completion of 144 agri-commodity transactions across 33 countries
• Operational cost reduction through franchise conversion

Negative

• Potential divestiture of restaurant brands indicates strategic shift away from direct retail operations

Insights

Financial Analyst

Sadot Group's Q4 and FY 2024 results represent a remarkable financial turnaround that validates their strategic pivot into the global food supply chain sector. The company achieved its first-ever annual profit with net income of $4.0 million compared to a $7.8 million loss in 2023.

Key financial metrics show substantial improvement across the board: FY EBITDA reached $8.9 million versus a $6.2 million loss in 2023, while diluted EPS jumped to $0.86 from a $2.24 loss. Q4 results follow this positive trend with net income of $0.7 million and EBITDA of $2.2 million.

Operationally, the company has demonstrated impressive scale by completing 144 transactions involving over 1.7 million metric tons of agri-commodities across 33 countries. Their strategic conversion of company-owned restaurant locations to franchise-owned models has effectively streamlined operations while positioning non-core assets for potential divestiture.

The executive appointments, particularly CEO Catia Jorge with her Cargill and Olam background, bring substantial industry expertise that aligns perfectly with Sadot's strategic direction. The company has also expanded geographically with new Canadian operations and diversified into the pet food ingredient market.

This financial inflection point, combined with operational optimization and strategic leadership enhancements, positions Sadot for continued growth in the global food supply chain sector, which offers substantial opportunities for scale and margin improvement.

Q4 Net Income increases to $0.7 million and EBITDA rises to $2.2 million

Company delivers FY 2024 Net Income of $4.0 million while reaching $8.9 million of EBITDA

BURLESON, TX / ACCESS Newswire / March 11, 2025 / Sadot Group Inc. (NASDAQ:SDOT) (the "Sadot Group" or the "Company"), an emerging player in the global food supply chain sector, today announced that it disclosed its full year results for the period ending December 31, 2024. Chief Executive Officer, Catia Jorge and Chief Financial Officer, Jennifer Black will host a conference call at 11:00 am Eastern Daylight Time on March 12, 2025, to discuss the results. All interested parties are invited to join this call. The full year financial statements ended December 31, 2024, are available on the "Investors" section of the Company's website (www.sadotgroupinc.com/sec-filings) and can also be found on www.sec.gov.

Financial highlights for the fourth quarter ended December 31, 2024:

• Net income of $0.7 million, compared to a $1.9 million loss in the prior year period

• EBITDA of $2.2 million versus a loss of $2.0 million in the prior year period

• Consolidated revenue of $216.2 million

Financial highlights for the year ended December 31, 2024:

• Net income of $4.0 million, a significant improvement from the $7.8 million loss in the prior year

• EBITDA of $8.9 million compared to a loss of $6.2 million in the prior year

• Consolidated revenue of $700.9 million

• Dilutive EPS of $0.86 compared to a diluted EPS loss of $2.24 in 2023

The Company reported a significant financial turnaround, marking its first-ever yearly positive net income, a milestone that underscores its strategic pivot into the global food supply chain sector.

"We believe our financial and operational performance in 2024 is a clear indication that our strategy is working," said Catia Jorge, Chief Executive Officer of Sadot Group. "We are committed to continuing our growth trajectory and exploring new opportunities with the goal of further enhancing our value proposition and market position."

Strategic and Operational Highlights - Full Year 2024

• Company reported its first ever full year positive net income in the history of the company, further cementing the strategy to evolve into the global food supply chain sector

• Catia Jorge was appointed CEO to lead Sadot Group's next phase of growth, bringing extensive agri-commodity experience from Cargill and Olam, a proven track record in global supply chain management, and strong leadership with strategic vision

• Continued expansion of the senior leadership team by adding Claudio Torres, an industry leader from Monsanto and Syngenta Seeds to the Board of Directors

• Launched Sadot Canada operations

• Completed 144 transactions of over 1.7 million metric tons of agri-commodities throughout 33 different countries during 2024

• Converted or closed all company owned and operated locations into franchise owned locations, resulting in operational savings as well as better positioning the restaurants for divestiture. Continuing due diligence with multiple parties for Pokémoto and Muscle Maker Grill

• Entered pet food ingredient market

"We are incredibly proud of Sadot Group's achievements in 2024, highlighted by our transition to positive net income and significant improvements across key financial metrics," said Catia Jorge, Chief Executive Officer of Sadot Group "Our team's dedication and strategic focus have positioned us for sustainable growth in the global food supply chain sector. As we move into 2025, we are excited to build on this momentum, driving further efficiencies and expanding our market presence striving for delivering continued value for our shareholders."

Webcast Details:

Date: March 12, 2025
Time: 11:00 AM EDT / 8:00 AM PDT
To register, please use the link below:

https://www.webcaster4.com/Webcast/Page/3084/52157

All numbers disclosed are the amounts attributable to Sadot Group Inc. and exclude the portion related to the non-controlling interests. All share-based numbers are split adjusted.

About Sadot Group Inc.

Sadot Group Inc. has rapidly established itself as an emerging player in the global food supply chain. Sadot Group provides innovative and sustainable supply chain solutions that address the world's growing food security challenges.

Sadot Group currently operates within key verticals of the global food supply chain including global agri-commodity origination and trading operations for food/feed products such as soybean meal, wheat and corn, and farm operations producing grains and tree crops in Southern Africa.

Sadot Group connects producers and consumers across the globe, sourcing agri-commodity products from producing geographies such as the Americas, Africa and the Black Sea and delivering to markets in Southeast Asia, China and the Middle East/North Africa region.

Sadot Group is headquartered in Burleson, Texas with subsidiary operations throughout the United States, Brazil, Canada, Colombia, India, Israel, Singapore, Ukraine, United Arab Emirates and Zambia. For more information, please visit www.sadotgroupinc.com.

Sadot Group, Inc.
Consolidated Balance Sheets

		December 31, 2024				December 31, 2023
		$'000				$'000
ASSETS
Current assets:
Cash			1,786				1,354
Accounts receivable, net of allowance for doubtful accounts of $0.1 million and $0.2 million as of December 31, 2024 and 2023, respectively			18,014				52,920
Inventory			717				2,561
Assets held for sale			5,196				-
Other current assets			126,966				56,016
Total current assets			152,679				112,851
Property and equipment, net			11,820				12,883
Goodwill			-				1,798
Intangible assets, net			-				2,833
Other non-current assets			155				47,726
Total assets			164,654				178,091
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued expenses			28,019				50,167
Notes payable, current, net of discount of $0.9 million and $0.2 million as of December 31, 2024 and 2023, respectively			7,390				6,531
Deferred revenue, current			2,251				1,229
Liabilities held for sale			2,333				-
Other current liabilities			92,177				46,655
Total current liabilities			132,170				104,582
Notes payable, non-current			-				622
Deferred revenue, non-current			-				1,555
Other non-current liabilities			111				47,075
Total liabilities			132,281				153,834
Equity:
Common stock, $0.0001 par value, 20,000,000 shares authorized, 5,225,147 and 4,046,472 shares issued and outstanding as of December 31, 2024, and 2023, respectively			1				-
Additional paid-in capital			112,406				107,992
Accumulated deficit			(83,187	)			(87,179	)
Accumulated other comprehensive income / (loss)			(27	)			8
Total Sadot Group Inc. shareholders' equity			29,193				20,821
Non-controlling interest			3,180				3,436
Total equity			32,373				24,257
Total liabilities and equity			164,654				178,091

Sadot Group, Inc.
Consolidated Statement of Operations and Other Comprehensive Income / (Loss)

		For the Years Ended December 31,
		2024				2023
		$'000				$'000
Commodity sales			700,937				717,506
Cost of goods sold			(695,821	)			(707,871	)
Gross profit			5,116				9,635
Depreciation and amortization expenses			(259	)			(1,143	)
Pre-opening expenses			-				(336	)
Stock-based expenses			(6,662	)			(6,192	)
Sales, general and administrative expenses			(9,659	)			(8,968	)
Loss from continuing operations			(11,464	)			(7,004	)
Other income			-				308
Interest expense, net			(4,649	)			(468	)
Change in fair value of stock-based compensation			4,116				1,339
Warrant modification expense			-				(958	)
Gain on fair value remeasurement			17,111				1,491
Gain on sale of trading securities			518				-
Income / (loss) for continuing operations before income tax			5,632				(5,292	)
Income tax (expense) benefit			(3	)			15
Net income / (loss) for continuing operations			5,629				(5,277	)
Discontinued Operations:
Loss from discontinued operations, net of income taxes			(1,893	)			(2,765	)
Net loss for discontinued operations			(1,893	)			(2,765	)
Net income / (loss)			3,736				(8,042	)
Net loss attributable to non-controlling interest			256				218
Net income / (loss) attributable to Sadot Group Inc.			3,992				(7,824	)
Net income / (loss) from continuing operations per share attributable to Sadot Group Inc.:
Basic			1.28				(1.45	)
Diluted			1.26				(1.45	)
Net loss from discontinued operations per share attributable to Sadot Group Inc.:
Basic			(0.41	)			(0.79	)
Diluted			(0.41	)			(0.79	)
Weighted-average number of common shares outstanding:
Basic			4,583,389				3,494,056
Diluted			4,665,689				3,494,056

Sadot Group, Inc.
Consolidated Statement of Operations and Other Comprehensive Income / (Loss) (Continued)

		For the Years Ended December 31,
		2024				2023
		$'000				$'000
Net income / (loss)			3,736				(8,042	)
Other comprehensive income / (loss)
Foreign exchange translation adjustment			20				2
Unrealized gain / (loss), net of income tax			(55	)			6
Total other comprehensive income / (loss)			(35	)			8
Total comprehensive income / (loss)			3,701				(8,034	)
Comprehensive loss attributable to non-controlling interest			256				218
Total comprehensive income / (loss) attributable to Sadot Group Inc.			3,957				(7,816	)

Sadot Group, Inc.
Consolidated Statements of Cash Flows

		For the Years Ended December 31,
		2024				2023
		$'000				$'000
Cash Flows from Operating Activities
Net income / (loss)			3,736				(8,042	)
Adjustments to reconcile net income / (loss) to net cash used in operating activities:
Depreciation and amortization expenses			258				1,143
Gain / (loss) on fair value remeasurement			(17,111	)			(1,491	)
Stock-based expenses			6,662				6,192
Change in fair value of stock-based compensation			(4,116	)			(1,339	)
Warrant modification expense			-				958
Unrealized gain / (loss), net of income tax			(55	)			6
Foreign exchange translation adjustment			20				2
Bad debt expense			341				81
Changes in operating assets and liabilities:
Accounts receivable, net			34,483				(52,879	)
Inventory			1,639				(2,355	)
Operating right to use assets and lease liabilities, net			2				-
Other current assets			(53,944	)			(52,593	)
Other non-current assets			46,323				(44,144	)
Accounts payable and accrued expenses			(21,884	)			48,709
Other current liabilities			46,095				44,543
Other non-current liabilities			(46,048	)			46,048
Deferred revenue			824				1,426
Total adjustments			(6,511	)			(5,693	)
Net cash used in operating activities			(2,775	)			(13,735	)
Net cash (used in) / provided by operating activities - discontinued operations			(450	)			96
Cash Flows from Investing Activities
Investment from non-controlling interest			-				3,654
Purchases of property and equipment			(37	)			(7,278	)
Disposal of property and equipment			33				25
Net cash used in investing activities			(4	)			(3,599	)
Net cash provided by investing activities - discontinued operations			1,017				136
Cash Flows from Financing Activities
Proceeds from notes payable			11,051				12,141
Repayments of notes payables			(8,270	)			(5,670	)
Proceeds from exercise of warrants			-				2,153
Net cash provided by financing activities			2,781				8,624
Net cash used in financing activities - discontinued operations			(137	)			(66	)
Net Change in Cash			432				(8,544	)
Cash - beginning of period			1,354				9,898
Cash - end of period			1,786				1,354

Reconciliations of EBITDA, Adjusted EBITDA and Other Non-GAAP Measures

EBITDA and EBITDA Margin are non-GAAP measures. We define EBITDA as Net loss, adjusted for depreciation, amortization, interest income / (expense), and income taxes. We believe that EBITDA, and EBITDA Margin, (collectively, the "Non-GAAP Measures") are useful metrics for investors to understand and evaluate our operating results and ongoing profitability because they permit investors to evaluate our recurring profitability from our ongoing operating activities.

EBITDA and EBITDA Margin, have certain limitations, and you should not consider them in isolation or as a substitute for analysis of our results of operations as reported under U.S. GAAP. We caution investors that amounts presented in accordance with our definitions of any of the Non-GAAP Measures may not be comparable to similar measures disclosed by other issuers, because some issuers calculate certain of the Non-GAAP Measures differently or not at all, limiting their usefulness as direct comparative measures.

The following table presents a reconciliation of EBITDA from the most comparable U.S. GAAP measure, Net loss, and the calculations of the Net loss margin and Adjusted EBITDA Margin for the year ended December 31, 2024 and 2023:

		For the Years Ended December 31,
		2024				2023
		$'000				$'000
Net income / (loss)			3,736				(8,042	)
Adjustments to EBITDA:
Depreciation and amortization expenses			259				1,143
Interest expense, net			4,649				468
Income tax (benefit) / expense			3				(15	)
EBITDA			8,647				(6,446	)
EBITDA attributable to non-controlling interest			256				218
EBITDA attributable to Sadot Group Inc.			8,903				(6,228	)
Gross Profit			5,116				9,635
Gross Profit attributable to Sadot Group Inc.			5,372				9,853
Net income / (loss) Margin attributable to Sadot Group Inc.			0.5	%			(1.1	)%
EBITDA Margin attributable to Sadot Group Inc.			1.3	%			(0.9	)%

Forward-Looking Statements

This press release may include "forward-looking statements" pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. To the extent that the information presented in this press release discusses financial projections, information, or expectations about our business plans, results of operations, products, or markets, or otherwise makes statements about future events, such statements are forward-looking. Such forward-looking statements can be identified by the use of words such as "should", "may," "intends," "anticipates," "believes," "estimates," "projects," "forecasts," "expects," "plans," and "proposes." Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading "Risk Factors" and elsewhere in documents that we file from time to time with the SEC. Forward-looking statements speak only as of the date of the document in which they are contained, and Sadot Group, Inc., does not undertake any duty to update any forward-looking statements except as may be required by law.

Investor Relations:

E - IR@sadotco.com

SOURCE: Sadot Group Inc.

View the original press release on ACCESS Newswire

FAQ

What was Sadot Group's (SDOT) net income for Q4 2024?

Sadot Group reported Q4 2024 net income of $0.7 million, compared to a $1.9 million loss in the same period last year.

How many metric tons of agri-commodities did SDOT trade in 2024?

SDOT completed 144 transactions totaling over 1.7 million metric tons of agri-commodities across 33 different countries in 2024.

What was SDOT's full-year 2024 EBITDA compared to 2023?

SDOT's EBITDA for 2024 was $8.9 million, compared to a loss of $6.2 million in 2023.

How did SDOT's earnings per share (EPS) perform in 2024?

SDOT reported diluted EPS of $0.86 in 2024, compared to a loss of $2.24 per share in 2023.

What strategic changes did SDOT make to its restaurant operations in 2024?

SDOT converted all company-owned locations to franchise-owned locations, resulting in operational savings and better positioning Pokémoto and Muscle Maker Grill for divestiture.