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Sadot Group Inc. Reports Fourth Quarter and Full Year 2024 Results
Sadot Group Inc. Reports Fourth Quarter and Full Year 2024 Results
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:
SOURCE: Sadot Group Inc.
View the original press release on ACCESS Newswire
M.Anderson--SMC
