Sadot (SDOT) - 2025 Q2 - Quarterly Results

Financial & Operational Highlights Sadot Group achieved its fifth consecutive quarter of positive net income and EBITDA, reporting $114.3 million in consolidated revenues and a 4.4% gross margin Key Financial Metrics | Financial Metric | Value | | :--- | :--- | | Consolidated Revenues | $114.3 million | | Net Income | $0.4 million | | EBITDA | $1.7 million | | Dilutive EPS | $0.07 | | Gross Margin | 4.4% | | Working Capital Surplus | $24.2 million | - Achieved the fifth consecutive quarter of positive net income and EBITDA[4] - Completed 26 transactions, trading over 200,000 metric tons of agri-commodities across 7 countries[4] - Gross margins increased to 4.4%, a 100 basis point improvement, by focusing on specialty commodities[4] - Appointed Haggai Ravid as CEO (May 28, 2025) and Paul Sansom as CFO (August 1, 2025)[4] - Made a strategic investment, acquiring a 37.5% equity stake in an Indonesian carbon project focused on peatland and mangrove restoration, expected to generate 1.1 to 1.2 million carbon credits in its first cycle[4] Financial Statements The company's financial statements show a decrease in total assets to $130.6 million and a reduction in commodity sales to $114.3 million for the quarter compared to the prior year Condensed Consolidated Balance Sheets Total assets decreased to $130.6 million while total liabilities also declined, leading to an increase in Sadot Group Inc. shareholders' equity to $33.0 million as of June 30, 2025 Condensed Consolidated Balance Sheets Summary | Balance Sheet Items ($'000) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | 118,719 | 152,679 | | Total Assets | 130,629 | 164,654 | | Total Current Liabilities | 94,526 | 132,170 | | Total Liabilities | 94,690 | 132,281 | | Total Sadot Group Inc. Shareholders' Equity | 32,980 | 29,193 | | Total Liabilities and Stockholders' Equity | 130,629 | 164,654 | Condensed Consolidated Statement of Operations Commodity sales decreased to $114.3 million for the three months ended June 30, 2025, resulting in lower gross profit and a net income of $0.4 million attributable to Sadot Group Inc Condensed Consolidated Statement of Operations Summary | Income Statement Items ($'000) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Commodity Sales | 114,338 | 173,293 | | Gross Profit | 4,987 | 5,788 | | Income from Operations | 1,770 | 2,074 | | Net Income Attributable to Sadot Group Inc. | 389 | 2,369 | | Diluted EPS (Continuing Operations) | $0.08 | $0.45 | Condensed Consolidated Statements of Cash Flows Net cash used in operating activities totaled $5.4 million for the six months ended June 30, 2025, leading to a decrease in the company's cash balance to $0.4 million Condensed Consolidated Statements of Cash Flows Summary | Cash Flow Items ($'000) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by / (used in) operating activities | (5,367) | 10,461 | | Net cash provided by investing activities | — | 3 | | Net cash provided by / (used in) financing activities | 3,978 | (1,940) | | Net Increase (Decrease) in Cash | (1,364) | 8,602 | | Cash – end of period | 422 | 9,956 | Non-GAAP Financial Measures The company presents a reconciliation of Net Income to EBITDA, with EBITDA attributable to Sadot Group decreasing to $1.7 million and EBITDA margin contracting to 1.4% for Q2 2025 EBITDA Reconciliation | Reconciliation to EBITDA ($'000) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net income | 286 | 2,317 | | Depreciation and amortization | 27 | 92 | | Interest expense, net | 1,237 | 1,008 | | Income tax expense | — | 5 | | EBITDA | 1,550 | 3,422 | | EBITDA attributable to Sadot Group Inc. | 1,653 | 3,474 | | EBITDA margin attributable to Sadot Group Inc. | 1.4 % | 2.0 % | About Sadot Group Inc. Sadot Group Inc. operates in the global food supply chain, providing sustainable solutions through agri-commodity trading and farm operations in Southern Africa - Sadot Group is an emerging player in the global food supply chain, focused on sustainable solutions[7] - Operates in two main verticals: global agri-commodity origination/trading and farm operations in Southern Africa[8] - Connects producers from the Americas, Africa, and the Black Sea with consumers in Southeast Asia, China, and the MENA region[9] Forward-Looking Statements This section provides a standard legal disclaimer regarding forward-looking statements, advising readers to consult SEC filings for associated risks and uncertainties - The press release includes forward-looking statements under the "safe harbor" provisions of U.S. law[19] - These statements are not guarantees of future performance and are subject to risks and uncertainties[19] - The company does not undertake a duty to update these statements[19]