Q4 2024 Sadot Group Inc Earnings Call
Operator: Greetings, welcome to Sadot Group's Inc Q4 2024 earnings conference call. At this time, all participants are in listen-only mode.
Greetings welcome to Sadat Group's Inc, Q4, 'twenty 'twenty four earnings conference call at.
Operator: A question and answer session will follow the formal presentation.
At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone Keypads. Please note. This conference is being recorded I will now turn the conference over to your host Michael Roper, Chief governance, and compliance officer you may begin.
Operator: If anyone should require operator assistance during the conference, please press star zero on your telephone. Please note this conference is being recorded.
Michael Roper: I will now turn the conference over to your host, Michael Roper, Chief Governance and Compliance Officer. You may begin. Thanks, Operator.
Michael Roper: Before we get started, we'd like to state that this call 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 on this call discusses financial projections, information, or expectations about the business plans, results of operations, products, or markets, or otherwise make statements about future events, such statements may be 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 management believes 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.
Thanks, operator before we get started we'd like to state that this call may include forward looking statements pursuant to the safe Harbor provisions of the U S. Private Securities Litigation Reform Act of $19 95 to the extent that the information presented on this call discusses financial projections.
Information or expectations about the business plans results of operations products or markets or otherwise make statements about future events such statements may be 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 management believes 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.
Michael Roper: You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading Risk Factors in Sadot Group Inc.'s most recently filed Form 10-K, and elsewhere in documents that Sadot Group Inc. files 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.
Were urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading risk factors and so that group Inc. 's. Most recently filed Form 10-K, and elsewhere and documents that Saddam Group, Inc. Files 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 Sadat Group, Inc. Does not undertake any duty to update any forward looking statements, except as may be required by law.
Michael Roper: For this call, all numbers disclosed have been rounded to the closest 100,000 and percentages have been rounded to the closest tenth of a percent unless otherwise noted. All numbers disclosed in this report are the amounts attributable to Sadot Group Inc. and exclude the portion related to the non-controlling interest.
For this call I'll numbers disclosed have been rounded to the closest 100000 and percentages have been rounded to the closest 10th of a percent unless otherwise noted.
All numbers disclosed in this report are the amounts attributable to <unk> Group, Inc, and exclude the portion related to the Noncontrolling interests.
Michael Roper: On this call, we will refer to Sadot Group, Inc. as Sadot Group, Sadot, or the company.
On this call we will refer to Sadat Group, Inc. As Sadat group Sadat or the company.
Michael Roper: With me on the call today are Sadot Group's Chief Executive Officer, Katia Georges, and Chief Financial Officer, Jennifer Black. Katia and Jennifer will be presenting prepared remarks related to Sadot Group's financials filed on March 11, 2025, and those documents may be found on the company's website, newswire feeds, and on the SEC's website linked from the Sadot Group's website at www.sadotgroupinc.com under the Investor tab.
Speaker Change: With me on the call today are Sadat group's Chief Executive Officer, Katia, Georgia, and Chief Financial Officer, Jennifer Black.
Speaker Change: Katia and Jennifer will be presenting prepared remarks related to that group's financials filed on March 11th 2025, and those documents may be found on the company's website newswire feeds and on the Sec's website linked from the Sudan group's website at Www Dot Sadat Group, Inc. Dot com under the Investor tab.
Katia Georges: At this point, I'd like to turn it over to Sadot Group's CEO, Katya Georgia. Katya. Thank you, Michael. And good morning, everyone.
Speaker Change: At this point I'd like to turn it over to Sadat group's CEO Katia, Georgia.
Speaker Change: Gotcha.
Katia Georgia: Thank you Michael and good morning, everyone I'm pleased to welcome everyone to todays earnings call.
Katia Georges: I'm pleased to welcome everyone to today's earnings call, where we will discuss our fourth quarter and full year 2024 results. Let's get right to it.
Katia Georgia: We will discuss our fourth quarter and full year 2024 results.
Speaker Change: Let's get right to 820 24 was a milestone year for <unk> we.
Katia Georges: 2024 was a milestone year for Sadot. We achieved positive net income for the full year for the first time in company history, reflecting the success of our strategic transformation into an emerging player in the global agri-commodity market. Some key financial highlights include, for Q4 2024, the company generated consolidated revenue of $216.2 million. Achieved net income of $0.7 million, and EBITDA of $2.2 million. For the full year ended December 31st, 2024, the company generated consolidated revenue of $700.9 million. Achieved net income of $4 million, and EBITDA of $8.9 million. These numbers represent substantial improvements from 2023, demonstrating our ability to execute efficiently and drive sustainable profitability.
Speaker Change: We achieved positive net income for the full year, if I can first time in company history, reflecting the success of our strategic transformation into an emerging player in the global agricultural market.
Speaker Change: Some key financial highlights include Q.
Speaker Change: Q4, 2024, the company generated consolidated revenue of $216 2 million.
Speaker Change: Keven net income.
Speaker Change: 7 million.
Speaker Change: <unk> of $2 2 million.
Speaker Change: Full year ended December 31, 2024, the company generated consolidated revenue of $700 9 million.
Speaker Change: <unk> net income of 4 million.
Speaker Change: EBITDA of $8 9 million.
Speaker Change: These numbers represent substantial improvement from 'twenty to 'twenty, three demonstrating our ability to execute efficiently and drive sustainable profitability.
Katia Georges: To put this in perspective, Q4 net income improved by $2.6 million over Q4 2023.
Speaker Change: To put this in perspective Q4, net income improving by $2 6 million over Q4 2023.
Katia Georges: Q4 EBITDA improved by $4.3 million over Q4 2023 Full year net income improved by $11.8 million over full year 2023 Full year EBITDA improved by $15.1 million over full year 2023 This result validates the strategic shift we made in late 2022 establishing Sadot Group as a global player in agri-commodity.
Speaker Change: Q4, EBITDA, improving by $4 3 million over Q4 2023.
Speaker Change: Full year net income improving by 11 $8 million over full year 2023.
Speaker Change: Full year EBITDA improved by $15 1 million over full year 2823.
Speaker Change: This result validated the strategic shift we made in late 2022, establishing Sadat group as a global player in Agri commodities.
Katia Georges: Before I turn the call over to Jennifer Black, our CFO, for more specifics, since this is my first earnings call as CEO, I'd like to take a moment to introduce myself. I consider myself an agri-industry expert. I was born and raised in Sao Paulo, Brazil, and began my career managing raw material supply for one of Brazil's largest mini-growers. I later joined Cargill, where I spent 13 years executing high-value trading strategies, exporting over 7 million metric tons of grains annually. In 2016, I was invited by Olan International to build its grain and commodity trade operations in Brazil, scaling it to nearly $1 billion in annual revenue.
Speaker Change: Before I turn the call over to Jennifer Black our CFO for more specifics seems that this is my first earnings call as CEO I'd like to take a moment to introduce myself.
Speaker Change: I can see there myself and agri industry expert I was born and raised in Sao Paulo, Brazil, and begin my career managing raw material supply for one of Brazil's largest many groups I later joined Guy you right.
Speaker Change: 10 years executing high value trading strategies exporting over 7 million metric tons upgrades Emily Inc.
Speaker Change: In 2016, I wasn't invited by your line international to Vod screening commodity trading operations in Brazil is kicking me needs to nearly 1 billion in annual revenue.
Katia Georges: So why did I join Sadot? The answer is simple, opportunity. When I look at Sadot, I see opportunity which presents itself in several ways. First, Sadot has built a strong professional and geographical foundation, and I see a tremendous opportunity to take the company to the next level. The company is ready for a proven industry leader to step in and drive results. I have built and scaled business for some of the largest agri-commodity companies in the world, and I believe Sadot has an opportunity to grow into something special with an experienced leader driving the company. I'm eager and ready to make an impact.
Speaker Change: Why isn't that joined Sadat's. The answer is simple opportunity when I look at Sadat IC opportunity, which presents itself in several ways.
Speaker Change: So that has built a strong professional and geographical foundation and I see a tremendous opportunity to take the company to the next level.
Speaker Change: The company is ready for a proven industry leader to step in and drive results I have built and scaled business for some of the largest agricultural companies in the world and I believe product as an opportunity to grow into something special with the experienced neither driving the company.
Speaker Change: Im eager and ready to make an impact.
Katia Georges: Second, I believe Sadot presents a unique opportunity both for me personally and as an outlier in the industry. In a short period of time, the company has existed, Sadot has built an impressive global operation. with a unique organizational structure, leveraging a global footprint and industry experts in key areas. The company has the ability to react quickly to opportunities as they present themselves. Combining this with my proven history of launching and building global agri-promoting companies, I feel this is a perfect combination to scale Sadot in an aggressive way.
Speaker Change: Second I believe that that presents a unique opportunity both for me personally and as an outlier in the industry in a short period of time. The company has existed Sandoz has built an impressive global operation.
Speaker Change: We don't have any unique organization structure, leveraging our global footprint and industry expertise in key areas.
Speaker Change: The company has the ability to react quickly to opportunities as they present themselves combining this with my proven history up low teen and building a global average somebody to companies I feel this is a perfect combination to scale start up in an aggressive way.
Katia Georges: And finally, my mission is clear, execute aggressively to unlock Sadot's full potential, streamline operations to drive efficiency, expand strategically into new markets and commodities. There are plenty of opportunities in the nearly $2 trillion global agri-commodity market. With my leadership, our goal is to capture these opportunities and further grow the business.
Speaker Change: Finally, my intention is clear execute aggressively to <unk> full potential.
Speaker Change: The streamline operations to drive efficiency, expanding strategically into new markets and commodities.
Speaker Change: There are plenty of opportunities in nearly two three named global Agri commodity market with my leadership. Our goal is to capture these opportunities and further grow the business.
Jennifer Black: Now I'd like to turn the call over our CFO, Jennifer Black, to review the company's financial performance for the year and the fourth quarter of 2024. Jennifer? Thank you, Katya.
Speaker Change: Now I'd like to turn the call over our CFO, Jennifer Black to review the company's financial performance for the year and the fourth quarter of 'twenty 'twenty four Jennifer.
Jennifer Black: Thank you God, yet before I begin please note that our financial results for the year ending December 31st 2024, and Form 10-K were filed with the SEC yesterday March 11th 2025.
Jennifer Black: Before I begin, please note that our financial results for the year ending December 31, 2024 on Form 10-K were filed with the SEC yesterday, March 11, 2025, along with the press release on the same day. Sadot Agri-Foods revenue was $216.2 million in Q4 and $700.9 million for the full year. The company completed 75 trade related transactions in Q4 across 20 different countries. and 144 trade related transactions for the full year across 33 countries. Net income improved to $0.7 million in Q4 and $4 million for the full year. For the full year, this is a significant improvement of $11.8 million over 2023.
Along with the press release on the same day.
Jennifer Black: Did I aggregated revenue with $216 2 million in Q4, and $700 9 million for the full year.
Jennifer Black: The company completed 75 trade related transactions in Q4 across 20 different countries and 144 trade related transactions for the full year across 33 countries.
Jennifer Black: Net income improved to <unk> 7 million in Q4.
Jennifer Black: <unk> 4 million for the full year.
Jennifer Black: For the full year. This is a significant improvement of $11 8 million over 2023.
Jennifer Black: EBITDA rose to $2.2 million in Q4 and $8.9 million for the full year. For the full year, this marked an improvement of $15.1 million over 2023. Basic earnings per share from continuing operations improved to $1.28 per share compared to a negative $1.45 per share in 2023. Dilutive earnings per share for continuing operations improved to $1.26 per share compared to a negative $1.45 per share in 2023. SG&A expenses were reduced by $1.3 million to $0.9 million in Q4. mainly due to reclassifying Sadot Food Service's SG&A expenses for the year to discontinued operations, while also closing or converting all corporate-owned and operating restaurants to franchise locations.
Jennifer Black: EBITDA rose to $2 2 million in Q4, and $8 9 million for the full year.
Jennifer Black: For the full year this market improvement at $15 1 million over 2023.
Jennifer Black: Basic earnings per share from continuing operations improved to $1 28 per share compared to a negative $1 45 per share in 2023.
Jennifer Black: Diluted earnings per share for continuing operations improved to $1 26 per share compared to a negative dollar 45 per share in 2023.
Jennifer Black: SG&A expenses were reduced by $1 3 million to point 9 million in Q4.
Jennifer Black: Mainly due to reclassifying Sadat food services SG&A expenses for the year to discontinued operations. While also closing our converting all corporate owned and operating restaurants to franchise locations.
Jennifer Black: Looking at our balance sheet, the company had a cash balance of $1.8 million and a working capital surplus of $20.5 million. It is important to note that as a part of our ongoing strategy, we continue to reinvest cash into our agri-food commodity trading business to drive revenue growth and acquire strategic assets. The company is exposed to market risk primarily due to the volatility and prices of food and feed commodities. To manage these risks, we occasionally enter into forward sales contracts and hedges. These forward sales contracts are initially measured at fair value, with any changes in fair value recorded as a gain or loss from fair value remeasurements.
Jennifer Black: Looking at our balance sheet. The company had a cash balance of $1 8 million and a working capital surplus of $20 5 million.
Jennifer Black: It is important to note that as a part of our ongoing strategy. We continue to reinvest cash into our aggregated commodity trading business to drive revenue growth and acquire strategic assets.
Jennifer Black: The company is exposed to market risk, primarily due to the volatility in prices of food and feed commodities.
Jennifer Black: A manage these risks we occasionally enter into forward sales contracts and hedges.
These forward sales contracts aren't necessarily measured at fair value with any changes in fair value recorded as a gain or loss from fair value re measurement.
Jennifer Black: The mark-to-market gain on these derivative transactions contributed approximately $5.1 million in income for the quarter and $17.1 million for the year.
Jennifer Black: The mark to market gain on these derivative transactions contributed approximately $5 1 million and income for the quarter and $17 1 million for the year.
Jennifer Black: We are proud to report Q4 was our third consecutive profitable quarter in our first profitable full year. We believe positive changes are occurring across our business.
Jennifer Black: We are proud to report Q4 was our third consecutive profitable quarter and our first profitable full year. We believe positive changes are occurring across our business with that I would like to turn the call back over to Katja.
Katia Georges: With that, I would like to turn the call back over to Katya. Thank you, Jennifer. Before moving to questions, I would like to provide an update regarding our Canadian operations and the potential effect on tariffs between the US and Canada. It's our view that these current developments and tariffs will have no material effect on our Canadian and U.S. operations, financials, or growth plans. As a matter of fact, our core Canadian products, pulses such as lentils, peas, chickpeas, and beans are minimally affected by cross-border trade between the U.S. and Canada, as both countries primarily produce pulses for global export markets rather than bilateral trade.
Speaker Change: Thank you Jennifer before moving to questions I would like to provide an update regarding our Canadian operations and the potential effect on tariffs between the U S and Canada.
Speaker Change: It's our view that this current developments and therapies, we will have no material impact on our Canadian and U S operations financials, our growth plans as a matter of fact, our core Canadian products.
It's just such a thing into peace chickpeas and beans are minimally.
Speaker Change: <unk> by cross border trade between the U S and Canada as both countries, primarily produce posted for our global export markets rather than bilateral trade our flexibility commodity trading model will allow us to adapt quickly to any concern if they arise.
Katia Georges: Our flexibility commodity trading model will allow Sadot to adapt quickly to any concern if they arise. Sadot Group remains vigilant in monitoring the situation and will provide updates if any significant material change arises. For now, the tariffs should be considered as a non-material event concerning Sadot's Canada business operations.
Speaker Change: Starbucks broke we remain vigilant in monitoring the situation and we'll provide updates if any significant material change the rights for now the terrapins should be consider as a non material event concerning so that's kind of our business operations.
Katia Georges: So where do we go from here? Looking ahead, we are laying the focus on scaling Sadot through, one, driving operation efficiencies. We intend to optimize our supply chain to maximize margins. Two. Strengthening investors' relations. We plan on enhancing shareholder communication while driving awareness to our company. Three, expanding into new markets, aggressively establishing a presence in new global markets on both the supply and demand sides. Four, diversifying our commodity portfolio by adapting to market trends, creating stability. Five, strategic growth initiatives, including expanding our farm assets and integrating them into our trading operations. Bottom line is we believe we have only scratched the surface on growth opportunities within the nearly $2 trillion industry.
Speaker Change: So where do we go from here looking ahead, we are laser focused on its Kelly Sadat true one driving operation efficiencies, we intend to optimize our supply chain to maximize margins too.
Speaker Change: Strengthening investors relations, we plan on enhancing shareholder communication, while driving awareness to our company three expanding into new markets aggressively establishing a presence in new global markets on both the supply and demand side.
Speaker Change: Or diversifying our commodity portfolio by adapting to market trends, creating stability five strategic growth initiatives, including expanding our farm office and integrating them into our trading operations.
Speaker Change: Bottom line is we believe we have only scratched the surface on growth opportunities, we deem to nearly two trillion dollar industry.
Katia Georges: Finally, I want to express my sincere gratitude to all our investors, stakeholders, and team members for your time, trust, and continued support of Sadot. This quarter's achievements underscore the strength of our strategy and commitment to growth, cost-ability, and operational efficiency. We remain focused on advancing our core agri-commodity operations, optimizing our asset portfolio, and driving long-term value for our shareholders.
Speaker Change: Finally, I want to express my sincere gratitude to all our investors stakeholders and team members for your time Trust and continued support of startup schools. This quarters achievements underscore the strength of our strategy and commitment to grow profitably.
Speaker Change: Entity and operational efficiency, we remain focused on advancing our core agri commodity operations.
Speaker Change: <unk>, our asset portfolio and driving long term value for our shareholders.
Operator: With that, please give us a few moments while we open up the line for questions. Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start button.
With that please give us a few moments why are we open up the line for questions.
Speaker Change: Yeah.
Speaker Change: Thank you at this time, we will be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad.
Confirmation tone will indicate your line is in the question queue. You May Press Star two if you would like to remove your question from the queue.
Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys before we go to questions from our celestial analysts Jennifer Black who'd like to address some questions, which are which have been received for more stakeholders Jennifer.
Jennifer Black: Before we go to questions from our selected analysts, Jennifer Black would like to address some questions which have been received from our stakeholders. Thanks, Paul.
Jennifer Black: I'd now like to run through a few questions we previously received from shareholders.
Jennifer Black: Thanks, Paul I'd now like to run through a few questions. We previously received from shareholders.
Mike: First question we have is, can you provide an update on the sale of the restaurant? Mike, can you address this question where we stand on this? Yeah, I got it, Jennifer. Thanks. The restaurant sale process continues to move forward. While this process has taken a bit longer than originally expected, we now have the restaurant group positioned as a whole franchise concept without any corporately owned and operated location. This allows us to streamline the sales process, removing negative impacts and confusion on the overall performance. This actually should help streamline the due diligence process. However, we do have multiple parties in advanced stages of negotiations and the due diligence process.
Speaker Change: First question. We have is can you provide an update on the sale of the restaurants.
Speaker Change: Mike can you address this question on where we stand on that yes got it Jennifer Thanks, the restaurant's sale process continues to move forward.
Speaker Change: This process has taken a bit longer than originally expected. We now have the restaurant group positioned as a full franchise concept without any corporately owned and operated locations. This allows us to streamline the sales process, removing negative impacts and confusion on the overall performance.
Speaker Change: Actually should help streamline the due diligence process.
Speaker Change: However, we do have multiple parties at advanced stages of negotiations and the due diligence process with the addition of new managerial resources adjusting responsibilities. We can now have a more focused effort on completing the restaurant's sale process. This remains a top priority to divest the restaurants and continuing to focus all efforts on.
Mike: With the addition of new managerial resources and adjusting responsibilities, we can now have a more focused effort on completing the restaurant sale process.
Mike: This remains a top priority to divest the restaurants and continuing to focus all efforts on the strategic plan concentrating on the global food supply chain.
Speaker Change: The strategic plan and concentrating on the global food supply chain.
Jennifer Black: All right, the second question we have is there continues to be the threats of tariffs and announcements of new and different levels of tariffs. How do these affect Sadot in general?
Speaker Change: Alright. The second question. We have is there continues to be the threats of tariffs and announcements of new and different levels of terrorist how do these effects the diet in general and I'm going to go ahead and take that one and so that is a global trading company, we initiate trades between a multitude of countries as a matter of fact, most of our trains are initiated.
Jennifer Black: And I'm going to go ahead and take that one. Sadot is a global trading company. We initiate trades between a multitude of countries. As a matter of fact, most of our trades are initiated outside the U.S. and are not subject to the recently announced U.S. trade tariffs. In 2024, we conducted trades between 33 different countries. Yes, Sadot has a flexible trading model, ideally posed to capitalize on the changes in various trade flows.
Speaker Change: Outside the U S and are not subject to the recently announced U S trade tariffs.
Speaker Change: And 2024, we conducted trades between 33 different countries.
So that has a flexible trading model ideally pose to capitalize on the changes in various trade flows will continue to monitor monitor the situation and we'll provide updates should any significant material changes arise for now paired to tariffs should be considered a non material event.
Jennifer Black: We'll continue to monitor the situation, and we'll provide updates should any significant material changes arise. For now, tariffs should be considered a non-material event.
Katya Georges: The third question we have is the company has reported a lot of changes to its board and executive management lately. Are all these changes conducive with the company's current business and future strategy?
Speaker Change: The third question. We have is the company has reported a lot of changes to its board and executive management lately are all of these changes can.
Speaker Change: <unk> said, what the company's current business and future strategy.
Katya Georges: Katya, will you take this one? Oh, sure. All of those recent chains have been in line with the company's divestment from the legacy U.S.-centric restaurant business, and its strategic focus on its core business of the global agri-commodity supply chain. The current growth stage of the company allows us to bring in more agri-commodity industry-specific experts who should complement this active team and help propel Sadot forward.
Speaker Change: Yeah, well you take this one.
Oh sure.
Speaker Change: All of those recent changed has it been in line with the company's divestment from the legacy U S centric restaurant business and it's a strategic focus on its core business on the global Agri commodity supply chain.
Speaker Change: Where's the growth stage of the company allow us to bring in more as a commodity industry specific experts, who should complement executive team and help propel sadat forward starting from the most recent the appointment of Mark Mckinney is the chairman of the board.
Katya Georges: Starting from the most recent, the appointment of Mark McKinney as the chairman of the board, Mark has extensive experience as an executive in multi-agri-commodity companies, including Dole Packaging Goods, SunKite Growers, Algodair Foods, and LocalBalance. Secondly, in the recent appointment of Mr. Claudio Torres to the Board of Directors, Mr. Torres is a CISO-Net professional with top managerial experience in multinational agri-companies including Syngenta Seeds, Advanta Seeds, and Monsanto.
Speaker Change: Mark has extensive experience as a decorative and multi ivory commodity companies, including Dow packaging, good Sunrise growers Alberto your foods and local about <unk>.
Speaker Change: Secondly in the recent appointment of Mr. Clouds of toys to the board of directors. Mr. Story is a seasoned professional with top managerial experience and international RV companies include Syngenta seats advent of seats and Monsanto.
Jennifer Black: On the C-level, I've recently taken the drive seat as a new CEO, and we are restructuring the internal management team to reflect the current business focus and strategy. We will continue to optimize the teams and make any necessary changes to it that are in line with our strategy and will bring value to the company and its shareholders. Thank you, Katya.
Speaker Change: The C level I've recently taken to drive future as our new CEO and we are restructuring the internal management team to reflect the current business focus and strategy. We will continue to optimize the teams and make any necessary changes to it that are in line with our strategy and will bring value to them.
Speaker Change: Company and its shareholders.
Michael Roper: Thank you Katia. The first question. We have is how do you plan to enhance the company's IR and PR efforts. Michael you take this one got it thanks Jennifer.
Jennifer Black: The fourth question we have is how do you plan to enhance the company's IR and PR efforts?
Mike: Mike, will you take this one? Got it. Thanks, Jennifer. With the new management in place, we believe the company will have a clear trajectory which investors can engage with and appreciate. We plan on increasing the IR efforts in order to reach new investors and capital market professionals, as well as working in parallel channels to increase the overall exposure and recognition of the company. We plan on enhancing shareholder communication while driving awareness to the company.
Michael Roper: With the new management in place, we believe the company will have a clear trajectory, which investors can engage with and appreciate we plan on increasing the IR efforts in order to reach new investors and capital market professionals as well as working in parallel channels to increase the overall exposure and recognition of the company we plan on enhancing shareholder.
Michael Roper: And while driving awareness to the company this sounds straightforward, but let me emphasize a few key points here.
Mike: This sounds straightforward, but let me emphasize a few key points here. First, we plan on more frequent announcements and updates to shareholders. This may come through press releases, shareholder update letters, conference calls, etc. Second, to help drive awareness, we're launching non-deal roadshows and presentations to the investment community. We plan on attending more conferences, participate in more presentations, social media, etc. We now have refocused internal resources to drive this initiative.
Michael Roper: First we plan on more frequent announcements and updates to shareholders. This may come through press releases shareholder update letters conference calls et cetera.
Michael Roper: Second to help drive awareness, we're launching non deal roadshows and presentations to the investment community. We plan on attending more conferences participated in more presentations social media et cetera, We now have refocused internal resources to drive this initiative.
Mike: Finally, we're evaluating our current IR and PR strategy to determine if we need a new approach to drive awareness. We believe Sadat is currently undervalued. We need to not only execute against the business strategy, but we also need to communicate our strategy and build awareness in the investment community. And before I kind of give it back to Jennifer, just real quick, if you guys don't know, if you want frequent investor updates, you can go off to our website, Sadot Group Inc. dot com under the investment tab or investor tab. And there's a section there where you can enter in a register to receive all of our press releases and other announcements as well.
Speaker Change: Finally, we are evaluating our current IR and PR strategy to determine if we need a new approach to drive awareness. We believe Saddam is currently undervalued, we need to not only execute against our business strategy, but we also need to communicate our strategy and build awareness in the investment community and before I kind of give it back to Jeff.
Michael Roper: Deferred just real quick if you guys don't know if.
Jeff: If you wanted to frequent investor updates you can go off to our website. So that group, Inc. Dot com under the investment tab, our investor Tab and there is a section there where you can enter in a registered to receive all of our press releases and other announcements as well.
Jennifer Black: Jennifer. All right.
Jennifer Black: Thanks, Mike.
Jennifer Black: Jennifer Alright, thanks, Mike.
Jennifer Black: For Katya, what do you see as the next step for Sadot? Which markets and or products do you believe Sadot should focus on?
Speaker Change: For Katia, what do you see as the next step for Sadat, which markets or products do you believe that should focus on.
Katia Georges: Thanks, Jennifer. As I said before, we are in the process of our organization structure review to make sure the right talents are in place, aligning with our strategies, and bring operations optimization. This involves moving resource to the most critical areas, while also bringing in new talent if needed to support our strategy. As part of this organizational review, we will be analyzing our current SG&A expenses to ensure we deploy resources in the most critical areas, while also looking to reduce expenses in general. Regarding markets and products, we restrain our presence in Brazil and Argentina, which are both big brands and pulses producers.
Speaker Change: Thanks, Jay parent as I said before we are in the process of our organization is trucked to review to make sure the right talent in place online and we'd always strategies and bringing operations optimization. This involves moving resources to the most critical areas, while also bringing in new talent.
Speaker Change: If needed to support our strategy as part of this organization a review we will be analyzing our current SG&A expenses to ensure we deploy resources in the most critical areas. While also looking to reduce expenses in general.
Regarding market is in products, we will strengthen our presence in Brazil, and Argentina, which are both big brands in both CIS producers.
Katia Georges: While we focus on Brazil and Argentina, we also have expansion geared towards growing consumption markets like MENA in Asia.
Speaker Change: Why are we focus on Brazil, and Argentina, we also have expansion geared towards growing consumption markets like maybe not in Asia.
Speaker Change: Jennifer.
Katia Georges: Thank you.
Jennifer Black: Thank you.
Katia Georges: Okay, our last question. Katya, as a new CEO, can you please tell us how you see the company succeeding to grow in this highly competitive and centralized business, with some of the competition being the largest companies in the world?
Speaker Change: Okay. Our last question Katja as a new CEO can you. Please tell us how you see the company succeeding to grow and it's highly competitive and centralized business with some of the competition being the largest companies in the world got Ya.
Katia Georges: Katya? As I mentioned earlier, I see tremendous opportunity in Sadot, specifically because of its size, its team and its global presence. Sadot has done a lot in a very short period of time and has already reached profound achievements.
Speaker Change: As I mentioned earlier, I see a tremendous opportunity and sadat, specifically because of its size its team and its global presence.
That has been a lot in a very short period of time and it has already reached profound achievements. My bet is to leverage this is spirit and foundations are writing place streamline the operations and discard any inefficiencies and redundancies in an effort to continue growing the company one step at a time, while increasing the business.
Katia Georges: My plan is to leverage this spirit and the foundations already in place, streamline the operations and discard any inefficiencies and redundancies in an effort to continue growing the company one step at a time while increasing the business and shareholder value.
Speaker Change: And shareholder value.
Jennifer Black: Thank you, Katya.
Katia Georgia: Thank you Katia.
Jennifer Black: That is the end of our pre-selected questions.
Speaker Change: That is the end of our pre selected question Paul We would now like to open the lineup for questions.
Paul: Paul, we would now like to open the line up for questions.
Aaron Grey: Thanks Jennifer and now I would like to open up the call to Aaron Grey with AGP for questions. I thank you for the questions, Katya, welcome aboard, and thank you for everyone else for joining the call today. First question for me, just in terms of the quarter, want to get some... more detail in terms of some of the transactions particularly on the margin front just if I back into the fourth quarter it does look like they're there were a little bit lower margin potentially than we had seen earlier in the year just want some commentary on that whether or not that was just a function of the commodities traded the geographic mix or just any commentary there and maybe some expectation on that going forward particularly if you could give any color on the quarter now that we're halfway through March and mostly through first quarter that'd be helpful.
Speaker Change: Thanks, Jennifer and now I would like to open up the call to Aaron Grey with AGP for questions.
Aaron Grey: Hi, Thank you for the questions cocktail welcome aboard and thank you for everyone else for joining the call today.
Aaron Grey: First question for me just in terms of the quarter wanted to get some some more detail in terms of some of the transactions, particularly on the margin front Josef if I back into the fourth quarter. It does look like there there were a little bit lower margin potentially than we had seen earlier in the year. Just wanted some commentary on that whether or not that was just a function of.
Aaron Grey: The commodities trade to the geographic mix or just any commentary there and maybe some expectation on that going forward, particularly if you could give any color on the quarter now that we're halfway through March and mostly through first quarter that'd be helpful. Thank you.
Katia Georges: Thanks. So I think, thank you. Thank you for the question. In terms of the margins in EBITDA, All those chains that can anticipate our focus on restructuring and focus on the right talents to negotiate in higher margin markets than we were trading before, intensify risk management. So all these new focus will bring more results to the company.
Speaker Change: So I think everything Keith Thank you for the question Andrew.
Aaron Grey: In terms of.
Aaron Grey: The margins and EBITDA.
Speaker Change: All of those changes they can anticipate our focus on restructuring and focus on the right talents to negotiating higher margin markets and we were trading before.
Speaker Change: It is fire risk management. So all of these new focus will bring more resources to the company in particular for the last quarter of last year, Jennifer can I invite you want to comment on this specific period.
Jennifer Black: In particular, for the last quarter of last year, Jennifer, can I invite you on board to comment on this specific period? Yes, of course. I mean, kind of like what we've talked about in the past, Erin, these will fluctuate depending on the group that is trading, the areas that is trading, the types of trades. It will also fluctuate based off of seasonality and cyclical variants. Our Q4 was in line with some of our other quarters. And as Katya said, we're restructuring things and looking at things to evaluate our margins and looking for ways to constantly increase them.
Jennifer Black: Yes of course did.
Jennifer Black: Does that mean kind of like what we've talked about in the past and these will fluctuate depend depending on.
Speaker Change: The group that is trading the areas that is trading the types of trades. It will also fluctuate based off of seasonality and cyclical a variance. We E. R. Q4 was in line with some of our other quarters and as Kaki was saying yeah, we're restructuring things in looking at things to evaluate our margins in <unk>.
Jennifer Black: Looking for ways to constantly increase those.
Aaron Grey: Okay, great. Thanks for that.
Speaker Change: Okay, great. Thanks for that.
Aaron Grey: Second question for me, just any updates in terms of the farm, potential crop harvest and how we should think about the timing and cadence for that for 2025? Thanks, Ferry.
Speaker Change: Question for me just any updates in terms of the farm potential karpov crop crop harvest and how we should think about the timing and cadence for that 125.
Mike: Mike, do you want to answer about the farm? I'm going to go ahead and jump in here, if you don't mind. Sorry about that. On the farm, we actually are not harvesting in Africa right now, because there was a severe drought during the period of when we needed to plant. And based off of looking at what our cost was going to be, what our profit was going to be, it did not make sense to plant a crop. It would have cost us more money than we would have made, and it did not make operational sense to plant this fall.
Speaker Change: Thanks, Mike do you want to answer about the farms.
I'm going to go ahead and jump in here, if you don't mind, sorry about that.
Speaker Change: And on that Okay, we actually have.
Speaker Change: We actually are not harvesting in Africa right now because there was a severe drought during the period when we needed the plant and based off of looking at what our cost was going to be what our profit was gonna be it did not make sense to plant a crop it would've cost us more money.
Speaker Change: Then we would have made and it did not make operational sense to plant. This fall. However, we are looking to add to open that up in 2025.
Aaron Grey: However, we are looking to open that up in 2025. Okay, great. Thanks for color. Um, yeah.
Speaker Change: Okay, great. Thanks for the color, Yeah, and kaki. Thanks for all the commentary you gave in terms of your Mark Schwarzer for Sudan, India will dive deeper into that into next quarter, but thank you I'll jump back into queue.
Aaron Grey: And Katya, thanks for all the commentary gave in terms of your remarks for Sadat and we'll dive deeper into that into next quarter, but thank you. I'll jump into the queue. Thank you, Larry. Thanks Aaron.
Mary: Thank you Mary.
Tom Kerr: Now I would like to open up the call to Tom Kerr with Zax for questions. Good morning, everybody.
Speaker Change: Thanks, and now I would like to open up the call to Tom Kerr with Zacks for questions.
Speaker Change: Hello, Good morning, everybody a quick follow up on the restaurant.
Tom Kerr: Quick follow up on the restaurant group sale. Is there any changes in the values you guys are expecting that we talked about, you know, five, six months or six, nine months ago, you know, we're looking at five or 6 million or something, I don't realize the exact number, but has the valuation expectations changed in the last nine months?
Speaker Change: Group sales was there any changes in the values you guys are expecting that we talked about you know five six months six nine months ago.
Speaker Change: We're looking at five or $6 million or something that we will realize the exact number but the valuation expectations changed in the last three months.
Mike: Thank you all for your questions. Mike, you can jump in. Yep, got it. Okay, sorry. Didn't mean to cut you off. Yeah, so you know, as we've talked before, you know, in the restaurant sale, but there's multiple parties that are involved. Right? And we've got multiple offers that are out there. We are honing in on a few, right, that are closer. The process has taken a little bit longer than anticipated, because it's a little bit more of a complex transaction when you combine two restaurant chains into one that you're trying to sell. Right? So it wasn't just a straightforward and then you had the corporate locations versus the full franchise system.
Speaker Change: No no.
Mike: Mike you can jump in.
Speaker Change: Yep got it okay sorry.
Speaker Change: Didn't mean to cut you off.
Speaker Change: Yeah, So as we've talked before in the restaurant sale, but there's multiple parties that are involved right and we've got multiple offers that are out there we are holding in on.
Speaker Change: On a few right that are closer to the process has taken a little bit longer than anticipated because its a little bit more of a complex transaction. When you combine two restaurant chains into one that you're trying to solve right. So it wasn't just the straightforward and then you had the corporate locations versus a full franchise system. So all of the corporate locations are out of the system were full franchise and we're moving ahead.
Mike: So now that the corporate locations are out of the system, we're full franchise, and we're moving ahead, you know, as we planned, right, just take a little bit longer time, but we are getting much closer. The valuations that are in there are in line with what we've talked about before. You know, through this whole process, what we're really trying to, you know, look at now is more of the fine tuned type of areas, you know, how much, you know, cash at closing versus, you know, some loans or any of that type of stuff that might have to be carried, those type of things are all still in negotiation right now.
Speaker Change: As we play out right just take a little bit longer time, but we are getting much closer the valuations that are in there are in line with what we've talked about before.
Speaker Change: Through this whole process, what we're really trying to look at now is more of a fine tuned type of areas how much.
Cash at closing versus some loans or any of that type of stuff that might have to be carried those types of things are all still in negotiation right now.
Mike: But that's about as detailed as I can get you at this stage.
Speaker Change: But that's about as detailed as I can get you at this stage.
Tom Kerr: All right, no worries. Thanks.
All right no worries thanks.
Tom Kerr: Back to the margin discussion for a little bit on the commodity business. And we've talked about getting the gross margins up to, you know, the 2 to 3% range. I mean, without giving guidance, is that a 2025 event that we can, you know, dynamically increase those gross margins to the 2 to 3% range?
Speaker Change: Back to the margin discussion for a little bit on the commodity business and we've talked about getting the gross margins up to the 2% to 3% range.
Speaker Change: I mean without giving guidance is that the 2025 event that we can.
Dynamically increase those gross margins to the 2% to 3% range.
Katia Georges: Thanks, Tom, for the question. That is our major focus. It's a commodity market. It's volatile, so we cannot guarantee it's going to be this or that, but that's going to be our focus. And also, we are increasing our participation in markets like pulses, which bring us better margins compared to the normal grains business like soybean, corn and wheat. So we are increasing our participation on that, too, with the main objective to increase the company's value. Got it.
Speaker Change: Thanks for the question that is a major focus it's the commodity market is volatile. So we cannot guarantee is going to be this or that but that's going to be our focus and also we are increasing our participation in markets like doses.
Speaker Change: Bring us better margins compared to the normal grains business like soybean corn and wheat. So we are increasing our participation on that too.
Speaker Change: The main objective to increase the company's value and would be today.
Tom Kerr: And then one more financial.
Speaker Change: Got it and then one more financial I know you guys aren't giving guidance, but you know are we still expecting $150 million to $200 million of revenues each quarter as that.
Katia Georges: I know you guys aren't giving guidance, but, you know, are we still expecting 150 to 200 million in revenues each quarter? Is that you know, what can be done or what can derail that, I guess, is the question. It's also our focus. Of course, the quarters, they vary from each other, but we are pretty aligned to get that. Okay.
Speaker Change: What can be done or what can derail that I guess is the question.
Speaker Change: Yeah.
Speaker Change: But it's also hard photos are of course the quarters. They vary from each other but we are pretty aligned to them to get that.
Speaker Change: Okay.
Tom Kerr: All right, and the last one, just a quick one on this pet food announcement. So what are the ingredients there and, you know, why is that a good opportunity?
Speaker Change: Alright, and then last one just a quick one on the pet food announcements of what is the ingredients. There and you know why is that a good opportunity to go with it real quickly.
Tom Kerr: Could you go over that real quickly?
Mike: Can you just repeat the question for me, please, for some reason, my connection, please. Oh, you guys made an announcement you were getting in the pet food trading business. Okay, just want to call around that new opportunity. Yeah, we're still evaluating that.
Speaker Change: Can you just repeat the question for me. Please for some reason my connection please.
Speaker Change: So you guys made the announcement you were getting in the pet food the trading business.
Speaker Change: Oh, okay.
As far as color on the new opportunity.
Speaker Change: Yeah, we're still evaluating that but.
Mike: But Mike, if you want to jump in and give more info. Sure, yeah. So it's a new line, okay, that's coming on board. I don't know the actual ingredient per se. Do you know, Jennifer, what the ingredient was? I don't know what the ingredient was per se, right? But it's not, put it this way, it's a great opportunity for the company to get into. It's a burgeoning market that's out there with a lot of demand. It's going to remain relatively small for us in the short term. So I wouldn't expect any real impact from it for a few quarters of significant impact, right?
Speaker Change: But Mike if you want to jump in and give them more haynesville.
Speaker Change: Sure, Yes, so it's a it's a new line okay. That's coming on board I don't know the actual ingredient per se do you know just for the ingredient.
Speaker Change: I don't I don't know what the ingredient was per se right, but it's not put it this way it's a great opportunity for the company to get into it's a burgeoning market. That's out there with a lot of demand is going to remain relatively small for us in the short term I'm. So I wouldn't expect any real impact from it for a few quarters.
Mike: But we are getting into that area as we start growing it out. All right, sounds good.
Speaker Change: Of significant impact right, but we are getting into that area as we start growing it out.
Speaker Change: Alright sounds good I'll get back in the queue. Thank you.
Tom Kerr: I'll get back in the queue. Thank you.
Jennifer Black: And that concludes our Q&A portion of the call.
Thank you.
Speaker Change: That concludes our Q&A portion of the call matures at any final comments.
Katia Georges: Ms. Georges, any final comments? Thanks, Paul. No, I'd just like to thank you, everyone, for being here and participating with questions.
Speaker Change: Ah Thanks, Paul I'd, just like to thank you everyone for being here and participating in with questions.
Thank you and this does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.
Speaker Change: Thank you and this does conclude today's conference you may disconnect. Your lines at this time. Thank you for your participation.