from Sadot Group Inc.
Sadot Group Inc. Reports Fourth Quarter and Full Year 2023 Results
2023 Revenue Rises to $726.7 million from $161.7 million in 2022
Adjusted EBITDA Rises to $0.1 million vs. $2.0 million loss Year over Year
Engages Third Party to Explore the Potential Divestment of its Restaurant and Food Prep Assets
FORT WORTH, TX / ACCESSWIRE / March 20, 2024 / 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, 2023. Chief Executive Officer, Michael Roper and Chief Financial Officer, Jennifer Black will host a conference call at 11 am Eastern Daylight Time on March 21, 2024, to discuss the results. All interested parties are invited to join this call. The full year financial statements ended December 31, 2023, are available on the "Investors" section of the Company's website (https://www.ir-sadotgroupinc.com/sec-filings) and can also be found on www.sec.gov.
Financial highlights for the year ended December 31, 2023:
- In 2023, the Company's consolidated revenue was $726.7 million, a significant increase compared to $161.7 million for the year ended December 31, 2023.
- Non-GAAP adjusted EBITDA from operations was $0.1 million in 2023 compared to $2.0 million loss in 2022.
- In 2023, the Company's assets increased to $178.1 million from $27.2 million in 2022.
- The Company, as of December 31, 2023, had a cash balance of $1.4 million compared to a cash balance of $9.9 million in 2022 as cash was deployed to facilitate trades.
- In 2023, Sadot Group's working capital increased to $8.3 million from $4.0 million in 2022.
Review of Key Highlights:
- The Company reported consolidated revenue increase from the prior year is mainly due to sales revenue generated from our Sadot Agri-Foods division which began operations in November of 2022.
- The Company's 2023 non-GAAP adjusted EBITDA from operations was $0.1 million for 2023 compared to $2.0 million loss in 2022 was mainly due to our Sadot Agri-Foods division which generated $9.3 million of net income.
- The Company's total assets increased from $27.2 million in 2022 to $178.1 million in 2023. This is attributed to strategic initiatives such as the acquisition of the farm, accounts receivable related to trades, and forward sales contracts for future delivery.
- As of December 31, 2023, the Company had a cash balance of $1.4 million compared to a cash balance of $9.9 million as of December 31, 2022. This decline is a deliberate outcome of Sadot Group's strategic shift away from the restaurant business towards the Sadot Agri-Foods division. The deployment of cash is intrinsic to the Company's business model for generating revenue and margins.
- The Company is fully focusing on the Sadot Agri-Foods division as we have made the decision to explore alternatives including potentially divesting the Company of its restaurant operations which have had a material impact on earnings over the past year. The Company has engaged Lisiten Associates in New York, specialists in the sale of restaurant concepts, to explore the potential divestment of the Company's remaining restaurant and meal prep assets.
"It has been a truly transformative first 16 months since Sadot Group refocused and retooled the organization to become an emerging player in the global food supply chain," stated Michael Roper CEO of Sadot group. "Beginning with our initial focus on agri-commodity origination and trading, we have embarked on a journey of diversification and growth. Our strategic decision to hire Lisiten Associates to explore alternatives in our restaurant holdings underscores our commitment to focusing on our core operations and driving long-term value for our shareholders."
Webcast Details:
Date: March 21, 2024
Time: 11:00 AM EDT / 8:00 AM PDT
To register, please use the link below:
https://audience.mysequire.com/webinar-view?webinar_id=4f2fc5b6-6d78-4bd4-acc4-ca909e8101f6
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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 Ft. Worth, Texas with subsidiary operations all throughout the United States, Brazil, Colombia, Dubai, India, Israel, Singapore, Ukraine and Zambia. For more information, please visit www.sadotgroupinc.com.
Sadot Group, Inc.
Consolidated Balance Sheets
| December 31, 2023 | December 31, 2022 | |||||||
| $'000 | $'000 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | 1,354 | 9,898 | ||||||
Accounts receivable, net of allowance for doubtful accounts of $0.2 million and $23.4 thousand as of December 31, 2023 and 2022, respectively | 52,920 | 135 | ||||||
Inventory | 2,561 | 298 | ||||||
Other current assets | 56,016 | 317 | ||||||
Total current assets | 112,851 | 10,648 | ||||||
Right to use assets | 1,284 | 2,433 | ||||||
Property and equipment, net | 12,883 | 1,895 | ||||||
Goodwill | 1,798 | 2,626 | ||||||
Intangible assets, net | 2,833 | 4,611 | ||||||
Deposit on farmland | - | 4,914 | ||||||
Other non-current assets | 46,442 | 103 | ||||||
Total assets | 178,091 | 27,230 | ||||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | 50,167 | 1,953 | ||||||
Accrued stock-based compensation expense, related party | - | 3,603 | ||||||
Notes payable, current, net of discount of $0.2 million and nil as of December 31, 2023 and 2022, respectively | 6,531 | 222 | ||||||
Operating lease liability, current | 385 | 560 | ||||||
Deferred revenue, current | 1,229 | 95 | ||||||
Derivative liability | - | - | ||||||
Other current liabilities | 46,270 | 182 | ||||||
Total current liabilities | 104,582 | 6,615 | ||||||
Contract liability, non-current | 46,048 | - | ||||||
Notes payable, non-current | 622 | 759 | ||||||
Operating lease liability, non-current | 1,027 | 2,019 | ||||||
Deferred revenue, non-current | 1,555 | 1,276 | ||||||
Total liabilities | 153,834 | 10,669 | ||||||
Equity: | ||||||||
Common stock, $0.0001 par value, 200,000,000 shares authorized, 40,464,720 and 29,287,212 shares issued and outstanding as of December 31, 2023, and 2022, respectively | 4 | 3 | ||||||
Additional paid-in capital | 107,988 | 95,913 | ||||||
Accumulated deficit | (87,179 | ) | (79,355 | ) | ||||
Accumulated other comprehensive income | 8 | - | ||||||
Total Sadot Group, Inc. shareholders' equity | 20,821 | 16,561 | ||||||
Non-controlling interest | 3,436 | - | ||||||
Total equity | 24,257 | 16,561 | ||||||
Total liabilities and equity | 178,091 | 27,230 | ||||||
Sadot Group, Inc.
Consolidated Statement of Operations and Other Comprehensive Loss
| For the Years Ended December 31, | ||||||||
| 2023 | 2022 | |||||||
| $'000 | $'000 | |||||||
Commodity sales | 717,506 | 150,586 | ||||||
Company restaurant sales, net of discounts | 8,053 | 10,300 | ||||||
Franchise royalties and fees | 1,041 | 727 | ||||||
Franchise advertising fund contributions | 73 | 81 | ||||||
Other revenues | 13 | 5 | ||||||
Cost of goods sold | (716,755 | ) | (157,307 | ) | ||||
Gross profit | 9,931 | 4,392 | ||||||
Impairment of intangible asset | (811 | ) | (347 | ) | ||||
Impairment of goodwill | (828 | ) | - | |||||
Depreciation and amortization expenses | (1,808 | ) | (2,015 | ) | ||||
Franchise advertising fund expenses | (73 | ) | (81 | ) | ||||
Pre-opening expenses | (371 | ) | (117 | ) | ||||
Post-closing expenses | (212 | ) | (197 | ) | ||||
Stock-based expenses | (6,192 | ) | (3,716 | ) | ||||
Sales, general and administrative expenses | (9,404 | ) | (6,035 | ) | ||||
Loss from operations | (9,768 | ) | (8,116 | ) | ||||
Other income | 308 | 46 | ||||||
Interest expense, net | (469 | ) | (7 | ) | ||||
Change in fair value of stock-based compensation | 1,339 | - | ||||||
Warrant modification expense | (958 | ) | - | |||||
Gain on fair value remeasurement | 1,491 | - | ||||||
Gain on debt extinguishment | - | 140 | ||||||
Loss Before Income Tax | (8,057 | ) | (7,937 | ) | ||||
Income tax benefit / (expense) | 15 | (25 | ) | |||||
Net loss | (8,042 | ) | (7,962 | ) | ||||
Net loss attributable to non-controlling interest | 218 | - | ||||||
Net loss attributable to Sadot Group, Inc. | (7,824 | ) | (7,962 | ) | ||||
Net Loss Per Share attributable to Sadot Group, Inc.: | ||||||||
Basic and Diluted | (0.22 | ) | (0.28 | ) | ||||
Weighted-Average Number of Common Shares Outstanding: | ||||||||
Basic and Diluted | 34,940,559 | 28,558,586 | ||||||
Sadot Group, Inc.
Consolidated Statement of Operations and Other Comprehensive Loss (Continued)
| For the Years Ended December 31, | ||||||||
| 2023 | 2022 | |||||||
| $'000 | $'000 | |||||||
Net loss | (8,042 | ) | (7,962 | ) | ||||
Other comprehensive income | ||||||||
Foreign exchange translation adjustment | 2 | - | ||||||
Unrealized gain, net of income tax | 6 | - | ||||||
Total other comprehensive income | 8 | - | ||||||
Total comprehensive loss | (8,034 | ) | (7,962 | ) | ||||
Comprehensive loss attributable to non-controlling interest | 218 | |||||||