Executive Summary

Q4 delivered positive net income ($0.7M) and EBITDA ($2.2M) on $216.2M revenue; however, revenue came in below S&P consensus ($236.3M), and profitability stepped down sequentially from Q2–Q3 highs . Revenue consensus from S&P Global was $236.274M; EPS consensus was -$2.35 (2 est.)* .
Management emphasized a third straight profitable quarter and first profitable full year ($4.0M FY24 NI; $8.9M EBITDA), validating the strategic pivot to agri-commodities .
The quarter benefited from ~$5.1M mark-to-market gains on hedges, while underlying trading margins remain thin; management targets mix shift into higher-margin pulses and operational streamlining under new CEO Catia Jorge .
Near-term catalysts: continued profitable execution, progress on restaurant asset divestiture (multiple parties in advanced stages; valuations “in line”), and expansion of Canada/Brazil/pulses footprint; risk factors include commodity volatility and reliance on derivative remeasurement gains .

What Went Well and What Went Wrong

What Went Well
- Third consecutive profitable quarter (Q4 NI $0.7M; EBITDA $2.2M) and first profitable full year (FY24 NI $4.0M; EBITDA $8.9M), marking a significant turnaround vs. 2023 .
- Risk management/hedging contributed materially (Q4 mark-to-market gain ≈ $5.1M; FY ≈ $17.1M), supporting profitability amid commodity volatility .
- Strategic focus and leadership upgrades: appointment of an agri-commodity veteran CEO (ex-Cargill/Olam), intent to streamline SG&A and expand into higher-margin pulses/regions. “Execute aggressively to unlock Sadot’s full potential… expand strategically into new markets and commodities.” — CEO Catia Jorge .
What Went Wrong
- Revenue missed S&P consensus ($216.2M actual vs. $236.3M est.) and profitability stepped down vs. Q2 and Q3 (EBITDA $2.2M vs. $3.2M in Q2 and $2.9M in Q3), highlighting thin trading margins and quarterly variability .
- Farm operations impacted by severe drought in Africa; company chose not to plant due to negative expected economics, deferring harvest contribution into 2025 .
- Margin profile remains modest and fluctuates by trade/geography/seasonality; management aims for 2–3% gross margins but cannot guarantee due to inherent commodity volatility .

Financial Results

Quarterly P&L snapshot (oldest → newest):

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$175.0	$201.7	$216.2
Net Income ($USD Millions)	$2.4	$1.2	$0.7
EBITDA ($USD Millions)	$3.2	$2.9	$2.2
Basic EPS ($)	$0.05	$0.25	n/a (not disclosed)

Margins (reported where provided):

Margin	Q2 2024	Q3 2024	Q4 2024
Net Income Margin (attributable to SDOT)	1.3%	0.5%	n/a
EBITDA Margin (attributable to SDOT)	n/a	1.5%	n/a

Q4 vs S&P Global consensus:

Metric	Q4 2024 Consensus (S&P)*	Q4 2024 Actual
Revenue ($USD Millions)	$236.274*	$216.2
Primary EPS ($)	-$2.35 (2 est.)*	n/a (S&P shows actual -$4.17*)

Note: Company did not disclose quarterly EPS; full-year diluted EPS was $0.86 (FY24) vs. loss in 2023 . S&P’s “Primary EPS” methodology and share-count adjustments/discontinued operations may cause discrepancies relative to company figures; interpret EPS comparisons with caution.*

Operating KPIs (execution cadence):

KPI	Q2 2024	Q3 2024	Q4 2024
Trade-related transactions (count)	21	24	75
Countries (count)	8	14	20
Mark-to-market gain on derivatives	≈$3.3M	≈$5.5M	≈$5.1M

Balance sheet (FY-end): Cash $1.8M; working capital surplus ≈$20.5M; shareholders’ equity $29.2M .

Guidance Changes

Management did not issue formal quantitative guidance. Key non-formal targets/commentary:

Metric	Period	Previous Commentary	Current Commentary	Change
Revenue run-rate	Ongoing	Q2 call: July at ~$61M; team focused on sustaining ~$175–$200M quarterly pace (informal)	Q4 Q&A: “Still expecting $150–$200M per quarter… we are pretty aligned to get that” (non-formal)	Maintained as aspiration (non-formal)
Gross margin	Ongoing	1–3% range “where we can achieve,” subject to seasonality/mix	Focus to bring gross margins to 2–3%, mix shift to pulses; cannot guarantee due to volatility	Raised focus on upper end
SG&A/OpEx	2025+	Q3: reclassifications to reflect operations; SG&A increased with office buildouts	CEO to streamline org/SG&A, redeploy to critical areas	Cost discipline emphasis
Restaurant divestiture	2024–2025	100% franchise; multiple groups in diligence; aiming to expedite close without early exclusivity	Multiple parties in advanced stages; valuations in line with prior discussions	Progressing
Tariffs (U.S.–Canada)	2025	Not previously highlighted	“Nonmaterial” to Sadot Canada/U.S.; pulses largely exported; flexible model to adapt	New disclosure: neutral

No dividend or tax-rate guidance disclosed.

Earnings Call Themes & Trends

Topic	Q2 2024 (Aug)	Q3 2024 (Nov)	Q4 2024 (Mar)	Trend
Margin expansion	Higher margins via mix (Canada pulses, Brazil sesame); hedging; target 1–3% range	EBITDA margin 1.5%; NI margin 0.5%; Canada mix to aid margins	Focus on 2–3% gross margins; intensify risk mgmt; restructure talent for higher-margin markets	Incremental focus on margin quality
Geographic expansion	Launched Sadot Canada; Brazil foundations; diversify beyond China	Canada facilitating ~$20M trades; 11 specialty crops; 5 countries	Strengthen Brazil/Argentina; expand MENA/Asia	Broadening footprint
Product diversification	Entered sesame (Brazil); pulses (Canada)	Continued pulses; specialty crops in Canada	Pet food ingredients entry; pulses emphasis for margins	Mix shift to higher-margin niches
Farming	Zambia harvest in Q2 (maize/soy)	Indonesia farm deposit (vanilla/coconut), vertical integration	Zambia: no planting due to drought economics; revisit in 2025	Near-term pause; strategic expansion ongoing
Trade finance/risk	Working capital recycling; hedging key; ~$3.3M MTM gain	~$5.5M MTM gain	~$5.1M MTM gain; continue hedging program	Hedging continues to be material
Restaurant divestiture	Superfit sold; 100% franchise; buyers engaged	No corporate units; process optimized pre-LOI diligence	Multiple parties advanced; values “in line”; streamlining continues	Progressing toward exit
Tariffs/macro	—	—	Canada/U.S. tariffs: nonmaterial for pulses	Neutral disclosed

Management Commentary

“We achieved positive net income for the full year for the first time in the company’s history… establishing Sadot Group as a global player in agri-commodities.” — CEO Catia Jorge .
“Q4 was our third consecutive profitable quarter… The mark-to-market gain on these derivative transactions contributed approximately $5.1M in income for the quarter and $17.1M for the year.” — CFO Jennifer Black .
“My mission is clear: execute aggressively… streamline operations to drive efficiency, expand strategically into new markets and commodities.” — CEO Catia Jorge .
“We now have the restaurant group positioned as a whole franchise concept… multiple parties in advanced stages of negotiations.” — Michael Roper .

Q&A Highlights

Margins: Q4 margins were consistent with variability by trade/seasonality; management is restructuring talent, targeting higher-margin markets and pulses to lift margins over time .
Farming: Zambia farm did not plant due to drought-driven negative economics; reassessment in 2025 .
Gross margin goal: Management’s focus is 2–3% gross margins, with caveat on commodity volatility; pulses expected to help .
Revenue cadence: While not formal guidance, management aims to maintain ~$150–$200M per quarter, acknowledging variability .
Restaurant sale: Multiple parties in advanced stages; valuations in line with prior discussions; working to balance cash-at-close vs. other considerations .
Pet food ingredients: Early-stage; small near-term impact but attractive market .

Estimates Context

Q4 revenue missed S&P Global consensus: $216.2M actual vs. $236.274M consensus (2 estimates)* .
EPS context is complex: S&P shows Q4 “Primary EPS” consensus of -$2.35 and “actual” of -$4.17*, while the company reported positive Q4 net income. The discrepancy likely reflects methodology (Primary EPS vs. diluted, continuing vs. discontinued operations) and share-count changes; the company did not disclose quarterly EPS in the press release/call .
Implication: Revenue miss may drive modest downward top-line adjustments; EPS models may require normalization to company methodology and updated share counts.

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Execution remains positive: three straight profitable quarters and first profitable year signal a credible turnaround; continued profitability is a key sentiment driver .
Quality of earnings: hedging gains (~$5.1M in Q4) materially supported results; monitor underlying gross/EBITDA margins and mix shift into pulses to gauge durability .
Growth levers: scaling Canada/Brazil, expanding pulses/specialty crops, and potential Indonesia farm provide catalysts for throughput and margin expansion .
Balance sheet discipline: working capital recycling finances growth; cash modest at FY-end ($1.8M) but surplus working capital (~$20.5M) provides operating flexibility .
Restaurant exit: advanced negotiations with valuations “in line” could simplify the story and free resources for core agri-commodities; closing is a watch item .
Near-term trading setup: absent formal guidance, management aims for $150–$200M quarterly revenue; progress on mix/margins is pivotal for rerating .
Risk monitor: commodity and geopolitical volatility, customer/country mix, and the extent of derivative remeasurement gains vs. core trading profitability.

Appendix: Source Documents

Q4 2024 8‑K (press release + financials): revenue, NI, EBITDA, FY figures, balance sheet, cash flow, non-GAAP reconciliation .
Q4 2024 earnings call transcript: quarter specifics, hedging gains, farm update, margins, divestiture status, CEO strategic priorities –.
Q3 2024 8‑K and call: quarterly revenue/NI/EBITDA, margins, Canada progress, October revenue update – –.
Q2 2024 8‑K and call: quarterly revenue/NI/EBITDA, SG&A build, hedging gains, early Canada/Brazil efforts – –.
S&P Global consensus (Q4 2024): Revenue and EPS estimates and actuals (per S&P)*. Values marked with * retrieved from S&P Global.

Sadot Group Inc. (SDOT)·Q4 2024 Earnings Summary