Sadot Group Inc. Q4 FY2024 earnings call

1. 2024 was a milestone year for Sadot Group with the first profitable full year, achieving consolidated revenue of $700.9 million, net income of $4 million, and EBITDA of $8.9 million. 2. In Q4 2024, the company generated consolidated revenue of $216.2 million, net income of $0.7 million, and EBITDA of $2.2 million. 3. SG&A expenses were reduced by $1.3 million to $9 million in Q4 due to reclassifying Sadot food service's SG&A expenses to discontinued operations and converting corporate owned and operating restaurants to franchise locations. 4. The company's view is that current tariffs between the U.S. and Canada have no material effect on Canadian and U.S. operations, as core Canadian products like pulses are minimally affected by cross - border trade. 5. Future plans include driving operational efficiencies, strengthening investor relations, expanding into new global markets, diversifying commodity portfolio, and pursuing strategic growth initiatives such as expanding farm assets and integrating them into trading operations.

Sadot agri foods revenue was $216.2 million in Q4 2024 and $700.9 million for the full year 2024. Net income for Q4 was $0.7 million and $4 million for the full year. EBITDA was $2.2 million in Q4 and $8.9 million for the full year. The mark - to - market gain on derivative transactions contributed approximately $5.1 million in income for Q4 and $17.1 million for the full year. Q4 net income improved by $2.6 million over Q4 2023, Q4 EBITDA improved by $4.3 million over Q4 2023, full year net income improved by $11.8 million over 2023, and full year EBITDA improved by $15.1 million over 2023.

1. Laser - focused on scaling through driving operational efficiencies to optimize the supply chain and maximize margins. 2. Intend to strengthen investor relations by enhancing shareholder communication and driving awareness of the company. 3. Aggressively expand into new global markets on both the supply and demand sides. 4. Diversify the commodity portfolio to adapt to market trends and create stability. 5. Pursue strategic growth initiatives including expanding farm assets and integrating them into trading operations.

Exposed to market risk primarily due to the volatility in prices of food and feed commodities; to manage these risks, the company occasionally enters into forward sales contracts and hedges.

Q: Can you provide an update on the sale of the restaurants?

A: The restaurant sale process continues with multiple parties in advanced stages of negotiations. The process took longer than originally expected due to complexity, but there are multiple parties in advanced negotiations and due diligence, and efforts are focused on completing the sale.

Q: How do these tariffs affect Sadot in general?

A: Sadot is a global trading company with most trades initiated outside the U.S. and not subject to recently announced U.S. trade tariffs. It has a flexible trading model and will monitor the situation.

Q: Are all these changes to the board and executive management conducive with the company's current business and future strategy?

A: All recent changes are in line with the company's divestment from the legacy U.S. centric restaurant business and strategic focus on the global agri commodities supply chain, bringing in agri commodity industry specific experts.

Q: How do you plan to enhance the company's IR and PR efforts?

A: Plan to increase frequent announcements to shareholders through press releases, letters, etc., launch non - deal roadshows and presentations to the investment community, attend more conferences, and evaluate the current IR and PR strategy.

Q: What do you see as the next step for Sadot, which markets and products should it focus on?

A: Conduct organizational review to ensure right talents are in place, analyze SG&A expenses, strengthen presence in Brazil and Argentina, and expand into consumption markets like MENA and Asia.

Q: As a new CEO, how do you see the company succeeding to grow in a competitive business?

A: Leverage the company's size, team, and global presence, streamline operations, discard inefficiencies and redundancies, and continue growing step by step to increase business and shareholder value.

Q: Commentary on quarter margin and expectation going forward?

A: Margins fluctuate based on trading groups, areas, types of trades, seasonality, and cyclical variance; focus on restructuring and evaluating margins to increase them.

Q: Update on farm crop harvest for 2025?

A: There was a severe drought in Africa during planting period in 2024, so no harvest, but planning to open in 2025.

Q: Changes in restaurant sale valuation expectations?

A: Valuations are in line with before, process taking longer due to complexity but moving closer, with details still in negotiation.

Q: Pet food trading opportunity?

A: It's a new burgeoning market with demand, but will have relatively small impact in the short term as the company is still evaluating it.