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Sadot Group, Inc. Reports First Quarter 2025 Results
Q1 Net Income Increases to $0.9 million, EBITDA Rises to $2.5 million, Revenue Up 24.1%
Dilutive EPS increases to $0.18, improving by $0.24 from prior year
BURLESON, TX / ACCESS Newswire / May 14, 2025 / 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 first quarter ended March 31, 2025. Chief Financial Officer, Jennifer Black and Interim Chief Executive Officer, David Hanna will host a conference call at 11:00am EDT / 8:00am PDT on May 15, 2025, to review the results. All interested parties are invited to join this call. The quarterly financial statements for the three months ended March 31, 2025, 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.
First Quarter 2025 Financial Highlights
Consolidated revenues of $132.2 million
24.1% increase over the prior year period
Net income increased to $0.9 million
Improvement of $1.2 million, over a $0.3 million loss in the prior year period
EBITDA of $2.5 million
$2.5 million improvement from Q1 2024
Dilutive EPS improved to $0.18 compared to a negative $0.06 in the prior year period
Up $0.24 compared to a negative $0.06 in the prior year period
Working capital surplus of $21.9 million
Compared to $20.5 million as of December 31, 2024
Strategic and Operational Highlights
Completed 76 transactions of over 0.2 million metric tons of agri-commodities throughout 17 different countries during the first quarter.
Initiated the first trade from our newly established Sadot Korea subsidiary delivering commodities from Australia to Kenya and other countries.
Sadot Canada, Inc., entered into a management services agreement with a leading supplier of pulses and specialty crop ingredients to the North American pet food industry.
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: Thursday, May 15, 2025
Time: 11:00 am EDT/ 8:00 am PDT
To register, please use the following link:
https://www.webcaster4.com/Webcast/Page/3084/52488
* Please note that when logging into the Webcast, individuals must, when prompted to, "allow video and audio" access to their device to view and hear the call.
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, South Korea, Singapore, Ukraine, United Arab Emirates and Zambia. For more information, please visit www.sadotgroupinc.com.
Sadot Group, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
March 31, 2025 | December 31, 2024 | |||
$'000 | $'000 | |||
ASSETS | ||||
Current assets: | ||||
Cash | 1,940 | 1,786 | ||
Accounts receivable, net of allowance for doubtful accounts of $0.3 million and $0.1 million as of March 31, 2025 and December 31, 2024, respectively | 47,751 | 18,014 | ||
Inventory | 271 | 717 | ||
Assets held for sale | 4,915 | 5,196 | ||
Other current assets | 16,925 | 126,966 | ||
Total current assets | 71,802 | 152,679 | ||
Property and equipment, net | 11,793 | 11,820 | ||
Other non-current assets | 149 | 155 | ||
Total assets | 83,744 | 164,654 | ||
LIABILITIES AND EQUITY | ||||
Current liabilities: | ||||
Accounts payable and accrued expenses | 36,682 | 28,019 | ||
Notes payable, current, net of discount of $0.7 million and $0.9 million as of March 31, 2025 and December 31, 2024, respectively | 10,911 | 7,390 | ||
Deferred revenue, current | 74 | 2,251 | ||
Liabilities held for sale | 2,128 | 2,333 | ||
Other current liabilities | 139 | 92,177 | ||
Total current liabilities | 49,934 | 132,170 | ||
Other non-current liabilities | 105 | 111 | ||
Total liabilities | 50,039 | 132,281 | ||
Equity: | ||||
Common stock, $0.0001 par value, 20,000,000 shares authorized, 5,412,500 and 5,225,147 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively | 1 | 1 | ||
Additional paid-in capital | 113,004 | 112,406 | ||
Accumulated deficit | (82,249 | ) | (83,187 | ) |
Accumulated other comprehensive loss | (113 | ) | (27 | ) |
Total Sadot Group Inc. shareholders' equity | 30,643 | 29,193 | ||
Non-controlling interest | 3,062 | 3,180 | ||
Total stockholders' equity | 33,705 | 32,373 | ||
Total liabilities and stockholders' equity | 83,744 | 164,654 | ||
Sadot Group, Inc.
Condensed Consolidated Statement of Operations and Other Comprehensive Income/ (Loss)
(Unaudited)
Three Months Ended March 31, | ||||||
2025 | 2024 | |||||
$'000 | $'000 | |||||
Commodity sales | 132,168 | 106,507 | ||||
Cost of goods sold | (126,156 | ) | (103,697 | ) | ||
Gross profit | 6,012 | 2,810 | ||||
Depreciation and amortization expenses | (27 | ) | (91 | ) | ||
Stock-based expenses | (1,428 | ) | (796 | ) | ||
Sales, general and administrative expenses | (3,081 | ) | (1,393 | ) | ||
Income from operations | 1,476 | 530 | ||||
Interest expense, net | (1,541 | ) | (228 | ) | ||
Change in fair value of stock-based compensation | 778 | 476 | ||||
Income for continuing operations before income tax | 713 | 778 | ||||
Income tax expense | - | (1 | ) | |||
Net income for continuing operations | 713 | 777 | ||||
Discontinued Operations: | ||||||
Income / (loss) for discontinued operations, net of income tax | 107 | (1,090 | ) | |||
Net income / (loss) for discontinued operations | 107 | (1,090 | ) | |||
Net income / (loss) | 820 | (313 | ) | |||
Net loss attributable to non-controlling interest | 118 | 48 | ||||
Net income / (loss) attributable to Sadot Group Inc. | 938 | (265 | ) | |||
Net income from continuing operations per share attributable to Sadot Group Inc.: | ||||||
Basic | 0.16 | 0.20 | ||||
Diluted | 0.16 | 0.20 | ||||
Net income / (loss) from discontinued operations per share: | ||||||
Basic | 0.02 | (0.26 | ) | |||
Diluted | 0.02 | (0.26 | ) | |||
Weighted-average # of common shares outstanding: | ||||||
Basic | 5,227,444 | 4,186,905 | ||||
Diluted | 5,245,864 | 4,186,905 | ||||
Sadot Group, Inc.
Condensed Consolidated Statement of Operations and Other Comprehensive Income/ (Loss) (Continued)
(Unaudited)
Three Months Ended March 31, | ||||||
2025 | 2024 | |||||
$'000 | $'000 | |||||
Net income / (loss) | 820 | (313 | ) | |||
Other comprehensive income / (loss) | ||||||
Foreign exchange translation adjustment | 2 | - | ||||
Unrealized loss | (88 | ) | (60 | ) | ||
Total other comprehensive loss | (86 | ) | (60 | ) | ||
Total comprehensive income / (loss) | 734 | (373 | ) | |||
Comprehensive loss attributable to non-controlling interest | 118 | 48 | ||||
Total Comprehensive income / (loss) attributable to Sadot Group Inc. | 852 | (325 | ) | |||
Sadot Group, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended March 31, | ||||||
2025 | 2024 | |||||
$'000 | $'000 | |||||
Cash Flows from Operating Activities | ||||||
Net income / (loss) | 820 | (313 | ) | |||
Adjustments to reconcile net income / (loss) to net cash (used in) / provided by operating activities: | ||||||
Depreciation and amortization | 27 | 91 | ||||
Amortization of debt discount | 406 | - | ||||
Stock-based expenses | 1,428 | 796 | ||||
Gain / (loss) on fair value remeasurement | 18,602 | (3,259 | ) | |||
Change in fair value of stock-based compensation | (778 | ) | 476 | |||
Bad debt expense | 164 | 77 | ||||
Changes in operating assets and liabilities: | ||||||
Accounts receivable, net | (29,900 | ) | 29,668 | |||
Inventory | 446 | (27 | ) | |||
Other current assets | 91,387 | 3,816 | ||||
Other non-current assets | - | 5 | ||||
Accounts payable and accrued expenses | 8,664 | (26,646 | ) | |||
Other current liabilities | (92,154 | ) | (3,208 | ) | ||
Other non-current liabilities | 115 | - | ||||
Deferred revenue | (2,177 | ) | 1,031 | |||
Total adjustments | (3,770 | ) | 2,820 | |||
Net cash provided by / (used in) operating activities | (2,950 | ) | 2,507 | |||
Net cash provided by operating activities - discontinued operations | 8 | 104 | ||||
Cash Flows from Investing Activities | ||||||
Disposal of property and equipment | - | 29 | ||||
Net cash provided by investing activities | - | 29 | ||||
Net cash provided by investing activities - discontinued operations | - | 29 | ||||
Cash Flows from Financing Activities | ||||||
Proceeds from notes payable | 4,581 | 1,500 | ||||
Repayments of notes payable | (1,467 | ) | (4,261 | ) | ||
Net cash provided by / (used in) financing activities | 3,114 | (2,761 | ) | |||
Net cash used in financing activities - discontinued operations | (20 | ) | (36 | ) | ||
Foreign exchange translation adjustment | 2 | (12 | ) | |||
Net Increase (Decrease) in Cash | 154 | (140 | ) | |||
Cash - beginning of period | 1,786 | 1,354 | ||||
Cash - end of period | 1,940 | 1,214 | ||||
Reconciliations of EBITDA and Other Non-GAAP Measures
EBITDA and 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 believes that EBITDA and 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 and 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 from the most comparable U.S. GAAP measure, Net loss, and the calculations of the Net loss margin and EBITDA Margin for the three months ended March 31, 2025 and 2024:
Three Months Ended March 31, | ||||||
2025 | 2024 | |||||
$'000 | $'000 | |||||
Net income / (loss) | 820 | (313 | ) | |||
Adjustments to EBITDA: | ||||||
Depreciation and amortization expenses | 27 | 91 | ||||
Interest (income) / expense, net | 1,541 | 228 | ||||
Income tax expense | - | 1 | ||||
EBITDA | 2,388 | 7 | ||||
EBITDA attributable to non-controlling interest | 118 | 48 | ||||
EBITDA attributable to Sadot Group Inc. | 2,506 | 55 | ||||
Gross Profit | 6,012 | 2,810 | ||||
Gross Profit attributable to Sadot Group Inc. | 6,130 | 2,858 | ||||
Net income / (loss) margin attributable to Sadot Group Inc. | 0.6 | % | (0.3) | % | ||
EBITDA margin attributable to Sadot Group Inc. | 1.9 | % | 0.1 | % | ||
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
A.Moore--AT