Reports Quarterly Net Income of $1.2 million

BURLESON, TX / ACCESSWIRE / November 12, 2024 / 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 third quarter ended September 30, 2024.

Third Quarter 2024 Financial Highlights

• Consolidated revenues of $201.7 million, a 10.7% increase over the prior year period.

• Net income increased to $1.2 million, up from a $5.2 million loss in the prior year period, a significant improvement of $6.3 million.

• EBITDA of $2.9 million compared to a negative $4.4 million of EBITDA in the prior year period, a significant improvement of $7.4 million.

• Basic EPS improved to $0.25 compared to a negative $1.39 in the prior year period.

• Dilutive EPS improved to $0.23 compared to a negative $1.39 in the prior year period.

• Working capital surplus of $18.9 million compared to $8.3 million at December 31, 2023.

Year to Date 2024 Financial Highlights

• Consolidated revenues of $484.7 million, compared to $555.4 million in the prior year.

• Net income increased to $3.3 million, up from a $6.1 million loss in the prior year, a significant improvement of $9.3 million.

• EBITDA of $6.7 million compared to an EBITDA of negative $4.2 million in the prior year, a significant improvement of $10.9 million.

• Basic EPS improved to $0.74 compared to a negative $1.81 in the prior year.

• Dilutive EPS improved to $0.69 compared to a negative $1.81 in the prior year.

"We are extremely pleased to report positive net income for the second consecutive quarter and record year-to-date net income, milestone achievements for the Company," said Michael Roper, Chief Executive Officer of Sadot Group. "Revenue growth in our core commodity trading business reached 11.6% year-over-year, in the latest three-month period, driven by increased transaction levels as we continued to expand our global commercial platform." The strength of our performance in the quarter and year-to-date periods reinforces our confidence in key strategies for driving growth and profitability within the nearly $2 trillion global agri-commodities market along with our commitment to delivering shareholder value."

Strategic and Operational Highlights

• Completed 24 transactions of over 0.5 million metric tons of agri-commodities throughout 14 different countries during the third quarter.

• Initiated trades from Sadot Brasil and Sadot Canada expanding the Company's global presence.

• We are now a 100% franchise concept and have been able to reduce some overhead expenses accordingly.

• Completed the sale of SuperFit foods.

• Continuing due diligence with multiple parties for Pokémoto and Muscle Maker Grill.

• Placed a deposit and in negotiations for the acquisition of an agricultural farming property in Indonesia.

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: Wednesday, November 13, 2024
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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 Burleson, Texas with subsidiary operations throughout the United States, Brazil, Canada, Colombia, India, Israel, Singapore, Ukraine, United Arab Emirates and Zambia. For more information, please visit www.sadotgroupinc.com.

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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 and nine months ended September 30, 2024 and 2023:

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

SOURCE: Sadot Group Inc.