• Q4 2024 Revenue: $216.2 million.
• Full Year 2024 Revenue: $700.9 million.
• Q4 2024 Net Income: $0.7 million.
• Full Year 2024 Net Income: $4 million.
• Q4 2024 EBITDA: $2.2 million.
• Full Year 2024 EBITDA: $8.9 million.
• Basic Earnings Per Share: $1.28 per share, improved from negative $1.45 in 2023.
• Dilutive Earnings Per Share: $1.26 per share, improved from negative $1.45 in 2023.
• SG&A Expenses: Reduced by $1.3 million to $0.9 million in Q4.
• Cash Balance: $1.8 million.
• Working Capital Surplus: $20.5 million.
• Mark-to-Market Gain on Derivatives: $5.1 million in Q4, $17.1 million for the year.

• Warning! GuruFocus has detected 6 Warning Signs with WKCMF.

Release Date: March 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Sadot Group Inc (NASDAQ:SDOT) achieved positive net income for the full year 2024 for the first time in the company's history.
• The company reported substantial revenue growth, with Q4 2024 revenue at $216.2 million and full-year revenue at $700.9 million.
• Net income improved significantly, with a $2.6 million increase in Q4 2024 over Q4 2023 and an $11.8 million increase for the full year over 2023.
• EBITDA showed strong growth, improving by $4.3 million in Q4 2024 over Q4 2023 and by $15.1 million for the full year over 2023.
• Sadot Group Inc (NASDAQ:SDOT) successfully reduced SG&A expenses by $1.3 million in Q4 2024, contributing to improved profitability.

Negative Points

• The restaurant sale process has taken longer than expected, although it is progressing with multiple parties in advanced negotiations.
• The company faced challenges with its African farm operations due to a severe drought, leading to a decision not to plant crops in the fall.
• Margins in Q4 2024 were lower than earlier in the year, attributed to the mix of commodities traded and geographic factors.
• The company is exposed to market risk due to volatility in food and feed commodity prices, requiring careful management of forward sales contracts and hedges.
• Despite positive financial results, Sadot Group Inc (NASDAQ:SDOT) acknowledges the need to enhance investor relations and public relations efforts to increase awareness and perceived value.

Q & A Highlights

Q: Can you provide an update on the sale of the restaurants? A: Michael Roper, Chief Governance and Compliance Officer, explained that the restaurant sale process is progressing, albeit slower than expected. The group is now positioned as a franchise concept, which should streamline the due diligence process. Multiple parties are in advanced negotiations, and the sale remains a top priority to focus on the global food supply chain.

Q: How do the threats of tariffs affect Sadot in general? A: Jennifer Black, CFO, stated that Sadot is a global trading company with most trades initiated outside the US, thus not subject to recent US trade tariffs. The companys flexible trading model allows it to adapt to changes in trade flows, and tariffs are currently considered a nonmaterial event.

Q: Are the recent changes to the Board and executive management conducive to the company's strategy? A: Catia Jorge, CEO, confirmed that the changes align with the company's strategic focus on the global agri-commodities supply chain. New appointments bring industry-specific expertise to propel Sadot forward, complementing the executive team and supporting the company's growth stage.

Q: How do you plan to enhance the company's IR and PR efforts? A: Michael Roper outlined plans to increase investor relations efforts, including more frequent announcements, roadshows, and presentations to the investment community. The company aims to enhance shareholder communication and drive awareness, believing Sadot is currently undervalued.

Q: What are the next steps for Sadot, and which markets or products should the company focus on? A: Catia Jorge emphasized strengthening presence in Brazil and Argentina, major grains and pulses producers, while expanding into growing consumption markets like MENA and Asia. The focus is on optimizing operations and aligning resources with strategic goals.

Q: Is there any update on the farm operations and crop harvest for 2025? A: Jennifer Black noted that due to a severe drought, planting in Africa was not feasible, as it would have been cost-prohibitive. However, the company plans to resume operations in 2025.

Q: Are there any changes in the valuation expectations for the restaurant group sale? A: Michael Roper stated that valuations remain in line with previous discussions. The process is complex due to combining two restaurant chains, but progress is being made, focusing on cash at closing and other financial details.

Q: How does Sadot plan to achieve higher gross margins in the commodity business? A: Catia Jorge highlighted the focus on trading in higher-margin markets and increasing participation in pulses, which offer better margins than traditional grains like soybean, corn, and wheat.

Q: What is the potential revenue expectation per quarter, and what could affect it? A: Catia Jorge indicated that the company aims for $150 million to $200 million in quarterly revenues, although variations may occur due to market conditions.

Q: Can you provide more details on the new pet food trading business? A: Michael Roper mentioned that the pet food trading business is a new line with significant demand. While it will remain small in the short term, it represents a growth opportunity for Sadot.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.