from Sadot Group Inc.
Sadot Group, Inc. Reports Third Quarter 2024 Results
Reports Quarterly Net Income of $1.2 million
BURLESON, TX / ACCESSWIRE / November 12, 2024 / Sadot Group Inc. (Nasdaq:SDOT) ("Sadot Group", "Sadot" or the "Company"), an emerging player in the global food supply chain sector, today announced its financial results for the third quarter ended September 30, 2024.
Third Quarter 2024 Financial Highlights
Consolidated revenues of $201.7 million, a 10.7% increase over the prior year period.
Net income increased to $1.2 million, up from a $5.2 million loss in the prior year period, a significant improvement of $6.3 million.
EBITDA of $2.9 million compared to a negative $4.4 million of EBITDA in the prior year period, a significant improvement of $7.4 million.
Basic EPS improved to $0.25 compared to a negative $1.39 in the prior year period.
Dilutive EPS improved to $0.23 compared to a negative $1.39 in the prior year period.
Working capital surplus of $18.9 million compared to $8.3 million at December 31, 2023.
Year to Date 2024 Financial Highlights
Consolidated revenues of $484.7 million, compared to $555.4 million in the prior year.
Net income increased to $3.3 million, up from a $6.1 million loss in the prior year, a significant improvement of $9.3 million.
EBITDA of $6.7 million compared to an EBITDA of negative $4.2 million in the prior year, a significant improvement of $10.9 million.
Basic EPS improved to $0.74 compared to a negative $1.81 in the prior year.
Dilutive EPS improved to $0.69 compared to a negative $1.81 in the prior year.
"We are extremely pleased to report positive net income for the second consecutive quarter and record year-to-date net income, milestone achievements for the Company," said Michael Roper, Chief Executive Officer of Sadot Group. "Revenue growth in our core commodity trading business reached 11.6% year-over-year, in the latest three-month period, driven by increased transaction levels as we continued to expand our global commercial platform." The strength of our performance in the quarter and year-to-date periods reinforces our confidence in key strategies for driving growth and profitability within the nearly $2 trillion global agri-commodities market along with our commitment to delivering shareholder value."
Strategic and Operational Highlights
Completed 24 transactions of over 0.5 million metric tons of agri-commodities throughout 14 different countries during the third quarter.
Initiated trades from Sadot Brasil and Sadot Canada expanding the Company's global presence.
We are now a 100% franchise concept and have been able to reduce some overhead expenses accordingly.
Completed the sale of SuperFit foods.
Continuing due diligence with multiple parties for Pokémoto and Muscle Maker Grill.
Placed a deposit and in negotiations for the acquisition of an agricultural farming property in Indonesia.
All numbers disclosed in this report 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.
Webcast Details
Date: Wednesday, November 13, 2024
Time: 10:30 am EDT/ 7:30 am PDT
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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.
Condensed Consolidated Balance Sheets
(Unaudited)
September 30, 2024 | December 31, 2023 | |||||||
$'000 | $'000 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | 962 | 1,354 | ||||||
Accounts receivable, net of allowance for doubtful accounts of $0.8 million and $0.2 million as of September 30, 2024 and December 31, 2023, respectively | 38,333 | 52,920 | ||||||
Inventory | 1,054 | 2,561 | ||||||
Assets held for sale | 5,431 | - | ||||||
Other current assets | 113,241 | 56,016 | ||||||
Total current assets | 159,021 | 112,851 | ||||||
Right to use assets | 137 | 1,284 | ||||||
Property and equipment, net | 11,847 | 12,883 | ||||||
Goodwill | - | 1,798 | ||||||
Intangible assets, net | - | 2,833 | ||||||
Other non-current assets | 22 | 46,442 | ||||||
Total assets | 171,027 | 178,091 | ||||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | 40,346 | 50,167 | ||||||
Notes payable, current, net of discount of $0.1 million and $0.2 million as of September 30, 2024 and December 31, 2023, respectively | 2,808 | 6,531 | ||||||
Operating lease liability, current | 22 | 385 | ||||||
Deferred revenue, current | 2,161 | 1,229 | ||||||
Liabilities held for sale | 2,464 | - | ||||||
Other current liabilities | 92,283 | 46,270 | ||||||
Total current liabilities | 140,084 | 104,582 | ||||||
Contract liability, non-current | - | 46,048 | ||||||
Notes payable, non-current | - | 622 | ||||||
Operating lease liability, non-current | 117 | 1,027 | ||||||
Deferred revenue, non-current | - | 1,555 | ||||||
Total liabilities | 140,201 | 153,834 | ||||||
Equity: | ||||||||
Common stock, $0.0001 par value, 20,000,000 shares authorized, 5,020,373 and 4,046,472 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively | 1 | - | ||||||
Additional paid-in capital | 111,650 | 107,992 | ||||||
Accumulated deficit | (83,912 | ) | (87,179 | ) | ||||
Accumulated other comprehensive (loss) / income | (180 | ) | 8 | |||||
Total Sadot Group Inc. shareholders' equity | 27,559 | 20,821 | ||||||
Non-controlling interest | 3,267 | 3,436 | ||||||
Total stockholders' equity | 30,826 | 24,257 | ||||||
Total liabilities and stockholders' equity | 171,027 | 178,091 | ||||||
Sadot Group, Inc.
Condensed Consolidated Statement of Operations and Other Comprehensive Income/ (Loss)
(Unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
$'000 | $'000 | $'000 | $'000 | |||||||||||||
Commodity sales | 200,906 | 179,975 | 480,706 | 547,900 | ||||||||||||
Company restaurant sales, net of discounts | 479 | 1,937 | 2,628 | 6,725 | ||||||||||||
Franchise royalties and fees | 321 | 245 | 1,319 | 767 | ||||||||||||
Franchise advertising fund contributions | 12 | 16 | 40 | 52 | ||||||||||||
Other revenues | 16 | - | 16 | 13 | ||||||||||||
Cost of goods sold | (199,271 | ) | (179,268 | ) | (480,074 | ) | (544,803 | ) | ||||||||
Gross profit | 2,463 | 2,905 | 4,635 | 10,654 | ||||||||||||
Impairment of goodwill | - | (828 | ) | - | (828 | ) | ||||||||||
Impairment of intangible assets | - | (810 | ) | - | (810 | ) | ||||||||||
Depreciation and amortization expenses | (49 | ) | (443 | ) | (421 | ) | (1,517 | ) | ||||||||
Franchise advertising fund expenses | (12 | ) | (16 | ) | (40 | ) | (52 | ) | ||||||||
Pre-opening expenses | - | (335 | ) | - | (371 | ) | ||||||||||
Post-closing expenses | (91 | ) | (60 | ) | (120 | ) | (173 | ) | ||||||||
Stock-based expenses | (1,713 | ) | (1,075 | ) | (4,430 | ) | (5,667 | ) | ||||||||
Sales, general and administrative expenses | (4,245 | ) | (3,310 | ) | (8,770 | ) | (7,175 | ) | ||||||||