MUSCLE MAKER(GRIL) - 2025 Q2 - Quarterly Results

Report Summary and Company Information This section provides an overview of Sadot Group's Q2 2025 financial and operational performance, company profile, and webcast details Second Quarter 2025 Highlights Sadot Group reported its fifth consecutive quarter of positive net income and EBITDA for Q2 2025, with consolidated revenues of $114,338 thousand and a net income of $400 thousand, achieving a 4.4% gross margin Q2 2025 Financial Performance | Metric | Q2 2025 ($'000) | | :--- | :--- | | Consolidated Revenues | 114,300 | | Net Income | 400 | | EBITDA | 1,700 | | Dilutive EPS | 0.07 | | Working Capital Surplus | 24,200 | | Gross Margin | 4.4% | - Company posted its fifth consecutive quarter with positive net income and EBITDA[4] - Gross margins increased to 4.4%, representing a 100 basis point improvement, driven by a focus on specialty commodities and commodity trades in the Canadian subsidiary[4] Strategic and Operational Highlights - Completed 26 transactions of over 200,000 metric tons of agri-commodities throughout 7 different countries during the second quarter[4] - Haggai Ravid joined as CEO on May 28, 2025, and Paul Sansom joined as CFO on August 1, 2025[4] - Made a strategic investment in an Indonesian carbon project, acquiring a 37.5% equity stake in Special Development Group (SDG), which holds full project rights in partnership with 11 indigenous coastal communities; the project focuses on peatland and mangrove ecosystem restoration and protection, expected to generate 1.1 to 1.2 million high-integrity carbon credits in its first issuance cycle[4] About Sadot Group Inc. Sadot Group Inc. is an emerging global food supply chain player, providing innovative and sustainable solutions, operating in agri-commodity trading and farm operations across various global regions - Sadot Group Inc. is an emerging player in the global food supply chain sector, focused on innovative and sustainable solutions for food security challenges[7] - Operates in key verticals including global agri-commodity origination and trading for food/feed products (e.g., soybean meal, wheat, corn) and farm operations producing grains and tree crops in Southern Africa[8] - Connects producers from the Americas, Africa, and the Black Sea to markets in Southeast Asia, China, and the Middle East/North Africa region[9] Webcast Details A conference call to review the second quarter 2025 results will be held on Friday, August 15, 2025, at 11:00 am EDT / 8:00 am PDT, with registration available via a provided link - Conference call to review Q2 2025 results scheduled for Friday, August 15, 2025, at 11:00 am EDT / 8:00 am PDT[6] - Registration link: https://www.webcaster4.com/Webcast/Page/3084/52841[6] Condensed Consolidated Financial Statements This section presents Sadot Group's condensed consolidated balance sheets, statements of operations, and cash flows for the periods ended June 30, 2025 Condensed Consolidated Balance Sheets As of June 30, 2025, Sadot Group reported total assets of $130,629 thousand, a decrease from $164,654 thousand at December 31, 2024, with shareholders' equity increasing to $32,980 thousand Condensed Consolidated Balance Sheet Highlights | Metric | June 30, 2025 ($'000) | December 31, 2024 ($'000) | Change ($'000) | | :--- | :--- | :--- | :--- | | Total Current Assets | 118,719 | 152,679 | (33,960) | | Total Assets | 130,629 | 164,654 | (34,025) | | Total Current Liabilities | 94,526 | 132,170 | (37,644) | | Total Liabilities | 94,690 | 132,281 | (37,591) | | Total Sadot Group Inc. Shareholders' Equity | 32,980 | 29,193 | 3,787 | - Working capital surplus of $24,200 thousand as of June 30, 2025[4] Condensed Consolidated Statement of Operations and Other Comprehensive Income/ (Loss) For the three months ended June 30, 2025, commodity sales were $114,338 thousand, decreasing from $173,293 thousand in the prior year, resulting in a net income attributable to Sadot Group Inc. of $389 thousand Key Income Statement Figures (Three Months Ended June 30) | Metric | 2025 ($'000) | 2024 ($'000) | YoY Change ($'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Commodity Sales | 114,338 | 173,293 | (58,955) | -34.0% | | Gross Profit | 4,987 | 5,788 | (801) | -13.8% | | Income from Operations | 1,770 | 2,074 | (304) | -14.7% | | Net Income attributable to Sadot Group Inc. | 389 | 2,369 | (1,980) | -83.6% | | Diluted EPS attributable to Sadot Group Inc. | 0.08 | 0.45 | (0.37) | -82.2% | Key Income Statement Figures (Six Months Ended June 30) | Metric | 2025 ($'000) | 2024 ($'000) | YoY Change ($'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Commodity Sales | 246,506 | 279,800 | (33,294) | -11.9% | | Gross Profit | 10,999 | 8,598 | 2,401 | 27.9% | | Income from Operations | 3,246 | 2,605 | 641 | 24.6% | | Net Income attributable to Sadot Group Inc. | 1,327 | 2,104 | (777) | -36.9% | | Diluted EPS attributable to Sadot Group Inc. | 0.23 | 0.62 | (0.39) | -62.9% | - Net income from continuing operations per diluted share attributable to Sadot Group Inc. was $0.08 for Q2 2025, a significant decrease from $0.45 in Q2 2024[12] Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2025, net cash used in operating activities was $5,367 thousand, a reversal from the prior year, resulting in a net decrease in cash of $1,364 thousand Key Cash Flow Figures (Six Months Ended June 30) | Metric | 2025 ($'000) | 2024 ($'000) | Change ($'000) | | :--- | :--- | :--- | :--- | | Net Cash Provided by / (Used in) Operating Activities | (5,367) | 10,461 | (15,828) | | Net Cash Provided by Investing Activities | — | 3 | (3) | | Net Cash Provided by / (Used in) Financing Activities | 3,978 | (1,940) | 5,918 | | Net Increase (Decrease) in Cash | (1,364) | 8,602 | (9,966) | | Cash – End of Period | 422 | 9,956 | (9,534) | - The company's cash balance decreased significantly from $1,786 thousand at the beginning of the period to $422 thousand at the end of the six months ended June 30, 2025[15] Non-GAAP Measures Reconciliation This section provides a reconciliation of EBITDA, a non-GAAP measure, to its most directly comparable GAAP financial measure, along with related disclosures EBITDA Reconciliation Sadot Group defines EBITDA as Net loss adjusted for depreciation, amortization, interest, and taxes, reporting EBITDA attributable to Sadot Group Inc. of $1,653 thousand for Q2 2025 and $4,159 thousand for the six months ended June 30, 2025 - EBITDA is a non-GAAP measure defined as Net loss, adjusted for depreciation, amortization, interest income/expense, and income taxes, used by the company to evaluate recurring profitability[16] EBITDA Attributable to Sadot Group Inc. | Metric | Three Months Ended June 30, 2025 ($'000) | Three Months Ended June 30, 2024 ($'000) | Six Months Ended June 30, 2025 ($'000) | Six Months Ended June 30, 2024 ($'000) | | :--- | :--- | :--- | :--- | :--- | | EBITDA attributable to Sadot Group Inc. | 1,653 | 3,474 | 4,159 | 3,530 | | EBITDA margin attributable to Sadot Group Inc. | 1.4% | 2.0% | 1.7% | 1.3% | - The company cautions that non-GAAP measures may not be comparable to similar measures disclosed by other issuers due to differing calculation methods[17] Additional Information This section includes standard disclosures regarding forward-looking statements and investor relations contact information Forward-Looking Statements This section provides a standard disclaimer regarding forward-looking statements, indicating that they are subject to risks and uncertainties that could cause actual results to differ materially - The press release includes forward-looking statements that are subject to risks and uncertainties, which could cause actual results to differ materially from expectations[19] - The company does not undertake any duty to update forward-looking statements except as may be required by law[19] Investor Relations Contact information for investor relations is provided via email - Investor Relations contact email: IR@sadotco.com[20]