PRESS RELEASE

from Sadot Group Inc.

Sadot Group, Inc. Reports Second Quarter 2024 Results

Record Quarterly Net Income of $2.4 million

FORT WORTH, TX / ACCESSWIRE / August 13, 2024 / 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, 2024

December 31, 2023

$'000

$'000

ASSETS

Current assets:

Cash

9,956

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

Inventory

2,528

2,561

Assets held for sale

6,335

-

Other current assets

110,004

56,016

Total current assets

153,730

112,851

Right to use assets

142

1,284

Property and equipment, net

11,888

12,883

Goodwill

-

1,798

Intangible assets, net

-

2,833

Other non-current assets

14

46,442

Total assets

165,774

178,091

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable and accrued expenses

30,548

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, current

21

385

Deferred revenue, current

7,932

1,229

Liabilities held for sale

3,111

-

Other current liabilities

92,278

46,270

Total current liabilities

137,598

104,582

Contract liability, non-current

-

46,048

Notes payable, non-current

-

622

Operating lease liability, non-current

123

1,027

Deferred revenue, non-current

-

1,555

Total liabilities

137,721

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 capital

109,962

107,988

Accumulated deficit

(85,075

)

(87,179

)

Accumulated other comprehensive (loss) / income

(175

)

8

Total Sadot Group Inc. shareholders' equity

24,717

20,821

Non-controlling interest

3,336

3,436

Total stockholders' equity

28,053

24,257

Total liabilities and stockholders' equity

165,774

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,

2024

2023

2024

2023

$'000

$'000

$'000

$'000

Commodity sales

173,293

157,559

279,800

367,925

Company restaurant sales, net of discounts

992

2,487

2,149

4,788

Franchise royalties and fees

741

238

997

522

Franchise advertising fund contributions

13

20

28

36

Other revenues

-

13

-

13

Cost of goods sold

(172,527

)

(157,239

)

(280,804

)

(365,535

)

Gross profit

2,512

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 income

19

251

19

251

Interest expense

(761

)

(22

)

(1,251

)

(19

)

Change in fair value of stock-based compensation

1,214

324

1,691

865

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