EX-99.1 2 ex-991earningsrelease63024.htm EX-99.1 Document

Exhibit 99.1
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Sadot Group, Inc. Reports Second Quarter 2024 Results

Record Quarterly Net Income of $2.4 million

Fort Worth, Texas, August 13, 2024 (ACCESSWIRE) —– Sadot Group Inc. (Nasdaq: SDOT) (the “Sadot Group” “Sadot” or the “Company”), an emerging player in the global food supply chain sector, today announced its financial results for the second quarter ended June 30, 2024.

Second Quarter 2024 Financial Highlights
•Consolidated revenues of $175.0 million, a 9% increase over the prior year period
•Net income of $2.4 million compared to $0.2 million in the prior year period. This was the highest quarterly income in the Company’s history
•EBITDA of $3.2 million compared to $0.7 million of EBITDA in the prior year period
•Cash balance of $10.0 million, up from $1.4 million at December 31, 2023
•Working capital surplus of $16.1 million compared to $8.3 million at December 31, 2023

"We delivered record net income in the second quarter as we continued to execute well against key initiatives to transform our business and drive growth and profitability," said Michael Roper, Chief Executive Officer of Sadot Group. “Our goal is to continue to seek to expand the scope and capabilities of our platform and to remain well positioned for significant growth in the nearly $2 trillion global agri-commodities market. I am extremely proud of our results, underscoring our resilience and commitment to operational excellence and our strategic vision.”

Strategic and Operational Highlights
•Completed 21 transactions of over 525,000 metric tons of agri-commodities throughout eight different countries during the second quarter.
•Shipped 2,500 metric tons to date of maize and over 690 metric tons of soya from the Company’s farming operations in Zambia during the second quarter.
•Established Sadot Canada, a wholly-owned subsidiary of Sadot LLC based in Toronto, Canada, in the second quarter. Canadian operations are led by David Hanna as Executive Vice President/General Manager and Jaime Rueda as Vice President/Head of Feed Ingredients. Both executives bring extensive experience and deep knowledge of the agri-commodity markets, making them invaluable additions to the Company. Their combined leadership will be instrumental in advancing Sadot’s global growth agenda by guiding the team in facilitating trade flows to and from North America, Africa, the Black Sea, Indonesia, and Brazil.
•Finalized the sale of Superfit Foods, the first of three legacy restaurant concepts the Company is in the process of divesting. Sadot is currently in discussions with potential buyers for the remaining restaurant assets, including Pokémoto and Muscle Maker Grill. Sadot will continue to expect that the divestiture of these non-core assets will drive operational savings and simplification along with ensuring that the Company’s resources are firmly aligned around the highest potential opportunities in the agri-commodities market.


Webcast Details

Date: Wednesday, August 14, 2024
Time: 10:30 am EDT/ 7:30 am PDT
To register, please use the following link:

https://audience.mysequire.com/webinar-view?webinar_id=30f0d4d8-1541-4f3b-8924-a11dd7e9b50d



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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 Central and South America, Southeast Asia, China and the Middle East/North Africa region.

Sadot Group is headquartered in Ft. Worth, Texas with subsidiary operations throughout the United States, Brazil, Canada, Colombia, Dubai, India, Israel, Singapore, Ukraine and Zambia. For more information, please visit www.sadotgroupinc.com. For additional updates, news and general knowledge related to the global Agri-commodity supply-chain, please visit our website at: www.sadotgroupinc.com and our social media postings on Facebook and X (Twitter).







Sadot Group, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
June 30, 2024December 31, 2023
$’000$’000
ASSETS
Current assets:
Cash9,956 1,354 
Accounts receivable, net of allowance for doubtful accounts of $0.3 million and $0.2 million as of June 30, 2024 and December 31, 2023, respectively
24,907 52,920 
Inventory2,528 2,561 
Assets held for sale6,335 — 
Other current assets110,004 56,016 
Total current assets153,730 112,851 
Right to use assets142 1,284 
Property and equipment, net11,888 12,883 
Goodwill— 1,798 
Intangible assets, net— 2,833 
Other non-current assets14 46,442 
Total assets165,774 178,091 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued expenses30,548 50,167 
Notes payable, current, net of discount of $0.1 million and $0.2 million as of June 30, 2024 and December 31, 2023, respectively
3,708 6,531 
Operating lease liability, current21 385 
Deferred revenue, current7,932 1,229 
Liabilities held for sale3,111 — 
Other current liabilities92,278 46,270 
Total current liabilities137,598 104,582 
Contract liability, non-current— 46,048 
Notes payable, non-current— 622 
Operating lease liability, non-current123 1,027 
Deferred revenue, non-current— 1,555 
Total liabilities137,721 153,834 
Equity:
Common stock, $0.0001 par value, 200 million shares authorized, 45,965,155 and 40,464,720 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively
5 4 
Additional paid-in capital109,962 107,988 
Accumulated deficit(85,075)(87,179)
Accumulated other comprehensive (loss) / income(175)8 
Total Sadot Group Inc. shareholders' equity24,717 20,821 
Non-controlling interest3,336 3,436 
Total stockholders’ equity28,053 24,257 
Total liabilities and stockholders’ equity165,774 178,091 


Sadot Group, Inc.
Condensed Consolidated Statement of Operations and Other Comprehensive Income/ (Loss)
(Unaudited)
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
$’000$’000$’000$’000
Commodity sales173,293 157,559 279,800 367,925 
Company restaurant sales, net of discounts992 2,487 2,149 4,788 
Franchise royalties and fees741 238 997 522 
Franchise advertising fund contributions13 20 28 36 
Other revenues— 13 — 13 
Cost of goods sold(172,527)(157,239)(280,804)(365,535)
Gross profit2,512 3,078 2,170 7,749 
Depreciation and amortization expenses(92)(441)(372)(1,074)
Franchise advertising fund expenses(13)(20)(28)(36)
Pre-opening expenses— — — (36)
Post-closing expenses(10)(19)(29)(113)
Stock-based expenses(1,921)(1,175)(2,717)(4,593)
Sales, general and administrative expenses(2,429)(1,783)(4,524)(3,864)
Loss from operations(1,953)(360)(5,500)(1,967)
Other income19 251 19 251 
Interest expense(761)(22)(1,251)(19)
Change in fair value of stock-based compensation1,214 324 1,691 865 
Gain on fair value remeasurement3,275 — 6,534 — 
Gain on sale of trading securities528 — 518 — 
Income / (Loss) Before Income Tax2,322 193 2,011 (870)
Income tax expense(5)(3)(7)(6)
Net income / (loss)2,317 190 2,004 (876)
Net loss attributable to non-controlling interest52 — 100 — 
Net income / (loss) attributable to Sadot Group Inc.2,369 190 2,104 (876)
Net Income / (Loss) Per Share attributable to Sadot Group Inc.:
Basic0.05 0.01 0.05 (0.03)
Diluted0.05 0.01 0.04 (0.03)
Weighted-Average # of Common Shares Outstanding:
Basic44,234,315 33,362,887 43,058,217 31,407,362 
Diluted50,092,282 33,567,719 48,987,759 31,407,362 


Sadot Group, Inc.
Condensed Consolidated Statement of Operations and Other Comprehensive Income/ (Loss) (Continued)
(Unaudited)
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
$’000$’000$’000$’000
Net income / (loss)2,317 190 2,004 (876)
Other comprehensive income / (loss)
Foreign exchange translation adjustment3 — 3 — 
Unrealized loss, net of income tax(126)— (186)— 
Total other comprehensive loss(123)— (183)— 
Total comprehensive income / (loss)2,194 190 1,821 (876)
Comprehensive income attributable to non-controlling interest52 — 100 — 
Total Comprehensive income / (loss) attributable to Sadot Group Inc.2,246 190 1,921 (876)


Sadot Group, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended June 30,
20242023
$’000$’000
Cash Flows from Operating Activities
Net income / (loss)2,004 (876)
Adjustments to reconcile net income / (loss) to net cash used in operating activities:
Depreciation and amortization372 1,074 
Stock-based expenses2,717 4,593 
Change in fair value of compensation(1,691)(865)
Unrealized loss, net of income tax(186)— 
Foreign exchange translation adjustment3 — 
Loss on disposal of assets188 53 
Bad debt expense— 34 
Transfer to assets held for sale(198)— 
Changes in operating assets and liabilities:
Accounts receivable, net27,876 (47,401)
Inventory(78)(9)
Other current assets(53,473)(1)
Other non-current assets46,375 — 
Accounts payable and accrued expenses(19,166)39,166 
Other current liabilities46,241 22 
Contract liability, non-current(46,048)— 
Operating right to use assets and lease liabilities, net(68)(21)
Deferred revenue6,175 17 
Total adjustments9,039 (3,338)
Net cash provided by (used in) operating activities11,043 (4,214)
Cash Flows from Investing Activities
Deposit on farmland(672)(3,888)
Purchases of property and equipment(31)(247)
Disposal of property and equipment57 110 
Net cash used in investing activities(646)(4,025)
Cash Flows from Financing Activities
Proceeds from notes payable3,580 3,500 
Repayments of notes payable(5,375)(69)
Net cash (used in) provided by financing activities(1,795)3,431 
Net Increase (Decrease) in Cash8,602 (4,808)
Cash – beginning of period1,354 9,898 
Cash – end of period9,956 5,090 


Reconciliations of EBITDA, Adjusted EBITDA and Other Non-GAAP Measures
EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin are non-GAAP measures. The Company defines EBITDA as Net loss, adjusted for depreciation, amortization, interest income / (expense), and income taxes. The Company defines Adjusted EBITDA as Net loss, adjusted for depreciation, amortization, net interest (income) expense, income taxes, impairment expenses, stock-based consulting expense, derived from amounts presented in the Unaudited Condensed Consolidated Statement of Operations. The Company believes that EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin, (collectively, the “Non-GAAP Measures”) are useful metrics for investors to understand and evaluate its operating results and ongoing profitability because they permit investors to evaluate its recurring profitability from its ongoing operating activities.

EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin, have certain limitations, and you should not consider them in isolation or as a substitute for analysis of its results of operations as reported under U.S. GAAP. The Company cautions investors that amounts presented in accordance with its 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 and Adjusted 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 three and six months ended June 30, 2024 and 2023:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
 $’000  $’000  $’000  $’000
Net income / (loss)2,317 190 2,004 (876)
Adjustments to EBITDA:
Depreciation and amortization expenses92 441 372 1,074 
Interest (income) / expense, net761 22 1,251 19 
Income tax expense5 3 7 6 
EBITDA3,175 656 3,634 223 
Adjustments to Adjusted EBITDA:
Other income(19)(251)(19)(251)
Change in fair value of stock-based compensation(1,214)(324)(1,691)(865)
Gain on fair value remeasurement(3,275)— (6,534)— 
Stock-based expenses1,921 1,175 2,717 4,593 
Gain on sale of trading securities(528)— (518)— 
Adjusted EBITDA60 1,256 (2,411)3,700 
Adjusted EBITDA attributable to non-controlling interest52 — 100 — 
Adjusted EBITDA attributable to Sadot Group Inc.112 1,256 (2,311)3,700 
Gross Profit2,512 3,078 2,170 7,749 
Gross Profit attributable to Sadot Group Inc.2,564 3,078 2,270 7,749 
Net income / (loss) margin attributable to Sadot Group Inc.1.3 %0.1 %0.7 %(0.2)%
Adjusted EBITDA margin attributable to Sadot Group Inc.0.1 %0.8 %(0.8)%1.0 %


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:
Frank Pogubila
SVP
Integrous Communications
W - 951.946.5288
E - IR@sadotco.com