SDOT - Earnings call transcript Q4 2023

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Operator

Welcome to the Sadot Group Inc. Q4 Fiscal Year 2023 Earnings Conference Call. Today's call is being recorded. [Operator Instructions] At this time, for opening remarks and introductions, I would like to turn the call over to Frank Pogubila, Sadot Group Inc.'s Investor Relations contact.

Frank Pogubila

Thank you, operator, and welcome everyone to Sadot Group Inc.'s Q4, Fiscal Earnings 2023 Conference Call and Webcast.

we forward-looking to safe statements of U.S. started, call that harbor get the include may pursuant we would state like this provisions Before to the Act Private of Litigation Reform Securities XXXX. or presented extent the call projections, may business or operations, that statements results information markets make forward-looking. expectations To future on or events, the about such otherwise the discusses this financial of products plans, information statements be about anticipates, as believes, by identified projects, the of should, be may, and can such intends, plans statements forward-looking expects, Such estimates, the forecasts, use words proposes.

based in differ Although to reasonable management expectations number that the are believes uncertainties of results actual materially there that from these could reflected forward-looking risks cause and such statements are forward-looking assumptions, a on statements.

consider including Factors other Inc. documents statements elsewhere the and time You most that any Group, cautionary the to and Group time made Risk heading are filed disclosures, urged in the Sadot recently in Sadot under Inc.'s and carefully XX-K statements SEC. from to Form files with review

statements the except are by document the Group to in date may any update statements, required speak as of any Inc. duty be they and Sadot forward-looking contained, of law. which only Forward-looking not does undertake as

website been rounded remarks amounts call, of On the Black; Mohan. to attributable Officer, percentages Sadot Group's at Sadot related Sadot on will and prepared from Group found and on to this Chief all the disclosed Company. With on be closest www.sadotgroupinc.com noncontrolling this this to and we and the are Investment the Chief are Jennifer the call Group's Group's me Inc. Directors, Sadot filed Group, website Kevin Michael Executive exclude Officer, of the Sadot Board noted in Officer portion report, the Financial website, numbers For the presenting linked Inc. SEC's been all and closest or X,XXX the and be those refer interest. may Investors today on tab. Group, as otherwise will Jennifer related call, XX, the documents to Newswire Sadot Chief March and rounded unless and to have Roper; have percent the XXXX, financials company's Michael Chairman feeds, to numbers disclosed under

to this to call point, Roper. At I'd Michael the Group's CEO, over like turn Sadot Michael?

Michael Roper

everyone, present Thanks, our XXXX. the we you fourth Good earnings Frank. and year us as morning, full and today results joining of thank December quarter ending for XX,

the retooled it's emerging QX group in the a like Sadot with highlights. XXXX embarked acknowledge that into months truly Beginning on since diving refocused origination focus Allow dive chain. of few me diversity to to the headlines commodity of Before a before we've and results on trading, I'd we to supply and been [indiscernible] agri global organization become first growth. you X and food an journey in a initial give transformative our specifics. player

total First, million XXXX million company revenue from our rose in $XXX XXXX. $XXX

year-over-year slightly our full EBITDA Second, year was positive XXXX. a to XXXX loss $X million compared for adjusted

And XXXX. $XX operations. explore assets at including agri of focusing alternatives, potentially company the the increased now the million from as on $XXX in business to the we divesting made lastly, Third, of million our XXXX end its to decision we've are restaurant company the total fully commodities

This for commenced generated we increase over million $XXX our So of top line let's point heading. is jump I'm revenue of we ago, we extremely and today where for XXXX. we're XXXX. an in XXXX. more Inc. Sadot operations revenue into year subsidiary total year significant announce Agri-Foods only given XXXX and marks Agri-Foods achieved the Sadot the the full had November significant To XX.X% Group, a precise, pleased million of noting our to details. that in where $XXX Sadot that be division were for are This where of the accounted a company

that origination we vision New of on over facilitate of announce engaged So in have supply material improve Our we a had is in and investments our this exploring global to on formally I divestment focused Aligning organization are food York, Lisiten our and specialists assets, which concepts to the remaining to goal, heading? trading agri have restaurant become year. past the restaurant trading a margins. Associates earnings that sale the commodities the can prep help of impact have meal and to potential where along with

related significant adjusted recorded weighing restaurant With $X EBITDA our P&L compared of our pretty are items change. am a series change for report other year a noncash our loss legacy to of $XX,XXX Group restructuring overall for positive among to Inc. EBITDA for of were our The remaining and restaurants financing a items. adjustments brands, Sadot corporate XXXX adjusted the XXXX, I strategies, EBITDA full we on that name to to that to XXXX, pleased million

in the to our with sale expenses FZ with and onetime consulting While to line, with essential as performance for bottom agricultural our of as our LLC line were part for future long-term growth our our strength anticipate operations, near We our Aggia along affect stock-based bottom respect fortify noncash agreement the charges these further to impact we items did they company. restaurant of proceed financial with opportunities charges and helping operations. the

the margins, serves trading Agri-Foods commodity Sadot high Agri-Foods, million in the by economic In industry. net our typical million $X.X income Sadot revenue the as is characterized on which business agri generated $XXX engine with XXXX, Focusing for volume for and dollar unit company. narrow

a align monthly with profitability to better margins company's financial and revenue transitioned to the we've revenues precise present You a more overview. quarterly have may that numbers to disclosing noticed cadence reporting from

and past trade trade, important we per per from tons exclusively in range trades over consumption, wheat in The that physical animal seeds. agri trades It we the soy, is to averaged or oil size $XX to for and and also oils year. foods human XX,XXX note to XXX corn, XX over over including typically $XX,XXX quarter million metric

reach, -- missed I our to our locations increased exploring Dubai. Sadot pronounced global and Singapore Paulo, and it, open offices, expand we we've São in if existing recently Latam future. Florida adding the to Miami, expansion additional sorry, in trading São to and Moreover, opportunities order our Sadot Brazil in In remain Paulo

is trades. growth our directly financing, access global execute and trade revenues access top hinges is trade our presence of line expanding essential to line increasing on The our margins While to to capital. financing larger particularly our growth linked to bottom

with our With reporting we facilities financing potentially agri commodity pursue a more to provide of increasing revenue larger now opportunities, important our margins how thereby enhancing on larger financing I emphasize line and such to new will potentially financial the trade cannot and and to behind us income. and are flexibility net us, facilities. our access trade these financing trading Access top to year growth. are

food the crops move efficiency. produce In grains This Mkushi avocado, the as in and us mango tree acquisition acres and X,XXX and of strategic chain majority-owned our of August XXXX, region the corn, with to chain footprint and soybean, its such approximately to resilience complementing of enables Zambia the global supply in supply bolster subsidiary. wheat, in-demand company origination trading expanded farmland our through operations our

underlying company not as and help market collateral supply integral it only the market The operations, commodity trade also as the the as total of the an in center, part to fluctuations. allows stand-alone serves operation. year So insulate farm case that's a negative round turns chain a the farm profit but crop to

and security global I'm of bolster of demand. signed The Zambian dedication food production happy government's maize, maize. reaffirming in security Agency, efforts, recently that amidst the the aims to cultivation support Zambia's company's the combating report food region agreement facilitate supply Republic national to key have of high-quality with to staple the we a to the agreement will challenges. the safeguard agreement an Reserve Food and This growing

recording, begin The now X to harvest and approximately remaining take maize this XXX have of started full to XX planted has, of metric hectares X XX be the hectares anticipated maize to from late fall maize with of will both soybeans over weeks frame. from X for to our of we support the this as more and In a tons of mid- in agreement, time harvest hectares delivered weeks XXX of than May approximately and completed complete. soybeans harvest

harvest, In also to plant has the acquire such land seeds, X,XXX land. to XXX inputs to they needed are which approximately covering a small help Sadot et converts engaging as that acres there small stage, need program local farm to to help in million contract current program of the alone all its over company is essential million that close owners in that pilot farm cetera initiated about order addition Agri-Foods region hectares, received and in farm. to to It's in ongoing hectares. Zambia X are their farmers X pilot fertilizers, to This farming the in actually farm belonging owners of estimated inputs need

for company, allows Agri-Foods pay fee product at its Africa. impact program inputs international the credit local time significant local the This ] contribution from a for initiative rural secure at communities collects suppliers [ turn, The Sadot to terms, marks and large the in a the farm harvest. in and a them company to we date minimal a create positive as increases can farmers allowing the small on with later of to The management presence region. the in

vision an new to playing acquired managing in is the forward sustainability markets diversifies asset carbon business trades have the This part company's Earlier Another is agriculture future. in become potentially for product a from part year, values and ongoing a the and also carbon line our new company major contract move to Carbon an portfolio opportunities. project offer environmental of Sadot exciting and across mangrove engaged credits. regulating in pollution. is and with This of and credits the aligned commodity we've inseparable part global Indonesia. new in planting Group's open credits this carbon-neutral industry world,

year to net Group reported net million a million, on approximately XX, XXXX. contrast of Overall, for December XXXX, $X previous loss $X.X approximately loss in the of a ending Sadot

were number that of charges previously impacted results. onetime a mentioned, significantly As there our

long-term short-term perform, company's continue direction million the are understand further focus in necessitated operating towards financial charges important that this is validating they steps our forward. economic on strategic Sadot income these is XXXX, moving to While to our Agri-Foods in What to business adjustments, $X.X objectives. engine, essential generating

the our of stakeholders. impacted in this this our harnessing necessity company strategic supply We While have to we the financial the and remain overall made upon eagerly food executing vision to that valued results, some year as forward. building momentum our tough and we move decisions order and opportunities their recognize for long-term we benefits the potentially strategic the anticipate global dedicated presents, impact chain were strength

full and Black, Jennifer? year results over of the the to CFO, call financial for the fourth our Now to performance turn I'd like Jennifer quarter XXXX. company for to the review

Jennifer Black

Thank you, Mike.

Before that along yesterday, results XXXX. I the quarter ended note like for to the the the on XX, the an financial March our like Form year same with of for December give press filed XX, release XX-K begin, were financials of that SEC I'd With to fourth overview day. that, I'd XXXX, with

The revenues of in of the to company completed agreement QX our transaction of $X.X $XXX,XXX Sadot for were transaction stock-based was in average consulting that million. with Our million, QX XX division, Agri-Foods These are $XXX cost result primarily transactions which our XXXX partially with These consultant, sold completed management Sadot increase company-wide revenue Aggia. countries. XX The the sales of million was expenses expense increased as totaling the of of $XXX XXXX. in XXXX. our of in million expenses $X XXXX. per Agri-Foods only primarily from compared due compensation QX QX XX across performance revenue of to incurred with stock-based $XX QX operational transactions significantly, million revenue approximately goods different part average

year Group full turn Now financial Sadot let XXXX. for the to me ending December the picture XX, overall for the

Sadot ending totaled increase XX, the primarily million commodity year web is by sales company December increased $XXX compared for December $XXX generated the XXXX, to XXXX. For $XXX prior to revenue attributed revenues year The Agri-Foods. million ended and million, XX, our significantly the

positive of in compared $X in million $XX,XXX adjusted XXXX. was EBITDA XXXX Our loss to a a as

I to like Sadot the discuss would our Group X operating divisions financials Inc. now further for of

vast The year increase December compared to operations in of ended margin and origination As Agri-Foods, revenue as Sadot farming of amount. the XX, generated consisting majority operations well trading XXXX. Zambia. and $XXX as our its as to is revenue XXXX, trading operations our sales million commodity Mike mentioned Agri-Foods with main Sadot to earlier, $XXX the company's for operations origination and in the was driver the of farming a million due negligible contributing

Our Sadot million. net Agri-Foods XXXX income was $X.X

December on for and closing division decline million operations compared Grill revenue the to to restaurant due The was locations. of the through This million legacy generated generated XX, revenue XXXX, Superfit Pokémoto, our year Foods. ended Moving restaurant of December the $X.X of Maker XXXX. company's $XX.X and consisting corporately refranchising Muscle to mainly XX, owned in

reported division of loss compared XXXX to a restaurant of million The $X.X in XXXX. $X.X a in million loss

cash As of towards XXXX. there million a of we restaurant the $X.X cash of our as the compared a reserves. Historically, from a December This shift December for as our XXXX, sector. million balance cash commodity trading decline outcome of deliberate agri strategic business restaurant XX, company, a $X.X was XX, is limited balance had of to away a use

for model cash profitability. core to and our our margin. new with generating actively for utilize intrinsic aligns approach of creating strategic focus, This of cash maximizing Instead is returns to now is in drive large maintaining growth our our revenue business stakeholders. our our priority the and with deployment balance, However, value of objective cash to

It by as increased contracts is increase our balance our majority-owned strategic to forward accounts assets such of the operations. our subsidiary, we notable is initiatives, acquisition trades reflecting related the fortified from the sales This sheet, to investments our $XX receivable $XXX by million bolster in the have attributed future developments to XXXX close that These substantial XXXX. delivery. farm of million to strategic and made significantly for total

decreased overall that base to is million, rose by $XXX While our asset it essential by our it is that reserves underscore million. true cash $X.X

the company. This to like increasing making capital changes I'd important surplus shift capital revenue, It balance while position our and is deploying that, strategic build drive commitment we enhance over sheet, sustainable our significant that financial and our the to to back continue to Roper. to underscores call remember growth. all our Michael strategically in our turn to working overall With grow

Michael Roper

In gratitude Thanks, to investors want us I Jennifer, and closing, for and my continued thanks for joining for that your stakeholders our financial all express and overview. today support. to

has global growth, on Agri-Foods positive player chain. as particularly earnings way. witnessed showcasing full the emergence call in year, a past a food XXXX shed Sadot along in despite year division journey supply the key Our light We've over remarkable facing our challenges the our

operating driving divest the of this strategy X the believe the on implemented months, corporately franchised-owned our owned past locations We potentially Over to to core value into all we've our for our our restaurants. complete, locations. strategy once announced believe underscores shareholders. this and We position operations our division convert long-term focus and will approach commitment to

evaluating We and distribution shipping are currently footprint. increase to the additional farming, market and trading, share processing, global opportunities operational our in

dynamic demonstrated resilience work and a whose hard has proud the I'm dedication of us of mist our by towards propelled landscape. team,

We Group success steadfast forward the market. look to stakeholders in in As your explore our we and the remain we continued and move our partnerships in forward, for opportunities exciting journey Inc. communities trust serve. delivering investors, we once position Sadot ahead vision, for and the again strengthen Thank strategic new our you further to

few With call the that, please seconds us give to for a questions. open

Operator

floor Roper Before Group's address analyst, with is Benjamin we on Mike, our we get received from from Petel. Sadot would selected have of like Jennifer, and Jennifer the some one questions, to to call Board questions which our Black is us stakeholders. the members, Also Michael yours.

Michael Roper

got previously well Alexa. Okay. that the go that few we the questions before Yes, we turn in with and to Thanks, live over questions we to a address wanted it analysts. over came as

then read to and going transition the questions do we'll that. I'm then and so the we'll And after answers

number? use that has And calculated? received Jennifer why we've let to So EBITDA we adjusted one. I'm going this is that should answer the question So how first

Jennifer Black

Okay, Mike.

extinguishment, EBITDA, and few fair gains measurement. items and other So we impairment These a adjusted income comp, consulting stock-based taxes, stock-based value fair net depreciation, modification things on warrant of with change that income transactions gain which we net investors operating profitability define in EBITDA, our They're amortization, like profitability, they on start expenses, loss, and expense it's we and then interest evaluate income, value expense, our adjusted from a for net onetime We metric our ongoing and transactions evaluate operations. loss a useful adjusted ongoing non-GAAP because believe to either is their removed. results are position. understand impacted investors recurring that for or noncash permitted to and our have expenses, measure,

Michael Roper

Awesome. Thanks, Jennifer.

Let me find the next here. question

is. affect it How additional compete other? Here does subsidiaries trading the or with each

they things MENA of compete do each So about Latam, we're region, and or Sadot with other how other. Brazil talking affect type each those

our That these offices the geographies of to So specific production establish needs distribution world. the supply well across important as each basically, to support trading work facilitate is subsidiaries really and different as And together other. demand and and the strategy different will locations. the the

actually supply recent in Brazil, commodities those area. So Dubai which for in office, for our Asia our example, established in subsidiary most may source turn the

limited all source other opportunities this So they that client our footprint, role just world. rather each in up to they're a support and options different but multiple relying expanding of overall mitigate can not trade Again, plays one don't internationally, without only vital the kind us out necessarily allows diversification well, interacting the right? time. that on a being By of There's enjoy global of across basis. in our domestically forget subsidiaries than also risks competition. individual each spread and our trade that pop all And we're as actually

can well, product South they the example. Latin an America, can America, trade as So America. over Latam, America, North throughout world that's They as move trade area, just all in the Central central and

there competing different against real no those is So areas.

decreased hand year-over-year? is next Jennifer. Let's throw your back again, that question. And towards on see I'll cash the Why

Jennifer Black

Mike. Thanks, right. All

you increase and the at XX started pivot we've multiple operations looking see this made by we about business ago. I business since in our strategic in months So balance our verticals. our mean this investing to the sheet. We're can one, expand investments

for purchased the For Zambia example, in we cash. farm

various deployed components just cycles Latam. into other with trade about, like company contributions Michael throughout process. also expanded trades those. Many include to from the our also areas the require Brazil cash just And to We and capital that and trading of our are trades talking we execute was

the changed a we Lastly, symbol, launched strategic and we also direction. company new name,

shift where cash to away for outcome these Agri-Foods the intrinsic is cash business And revenue business restaurant decline areas deliberate the And capital strategy of are has in division. the of it's company's margins. been from deployed All the our the on towards hand, Sadot and generating deployed. a model

Michael Roper

Fourth Jennifer. how Thanks, on Okay. its trades increase the overall the then actual being more question we can here is commodity that executed today? see specifically margins? company And

So we of the basically, right, margins, how increase end do at day. the

I to talk there's look, think few a things here. So about

So to are think right? business, overall, we it's building mode. that remember expansion important I we are And a in

business, So on out I right? expenditures. want word whatever, right? the an whatever it's an And there. immediate -- a large that's it's may very and we're building takes I have And senior this to right revenues some not new, established thing. impact building this not say, is, don't upfront corporation But We're profits.

Zambia The in, So an started soybeans farm then farm for farmers planting, and expense getting operations, all contract farm in where incremental example. produces the the we for begin the but that example, be seeing its later, just throughout incur a company, We maize the which date. expenses that few next incurred that for later the expenses, put like also meaning the integrated overall completed will products now that, months. their did that upfront as again there's The seasonal Zambia. of into component it harvest brings also harvest months. is would we're only revenue not in major Again, later be okay, planting over it and the you in of

So again, paying upfront. money

come these to Some little have of bit things in. a of delay

Now we're as our started the we've cycles in those farm. harvest for

as starting the getting into and trades we'll team be to spend we start infrastructure, the well. Another then should through build now trades, come we office Brazil money upfront, start example you seeing to that up We're will where to Brazil right? as some that and execute office got mode the

again, on type conditions, portfolio. lentils in trade shipping of to as add different looking specifically, to season, different and fluctuate vanilla, the et types this there. commodity, the commodities For peas, We're cetera. process of market our a little diversification costs, can just depending of the bit going of Such in

our to beyond open we addition, In areas MENA, area. in Latam continue to trade new Brazil want current

to And in allow shift things So and going areas us in to drive by all while be Again, to to around able all in roles, the combined able all fluctuate. conditions that we're in this maybe between market shift stuff going will as the wherever, we're regions between business. so help expanding bad to of margins right? should these are conditions Brazil, these selling be be some different different which doing the

received. the want So I if kind pre say that was -- think questions, to the of you we last that

So turn to you it different Alexa, want analysts? do over to the

Operator

you, Thank Jennifer. Mike, Yes.

We question will Grey Aaron? analysts, from our any take Do the go you have first with Aaron and AGP. questions, ahead

Aaron Grey

detailed prepared the little off you for Yes, like Thanks question. pick the to last in the all so off just question I'd far. where left remarks and a great. bit answers

of average cost right? $X $X down million. Just for commodity trading heard based I in million terms off were some quarter, So or average remarks slightly negative gross the margins the of flat environment

now. And seems past gross been So that like gross business trade -- led turning margins to commodity of was have it couple the kind margins? of a one that for quarters large flat for the it way

be know might [ it can I there So but seems trained little now. like it a volatility, more be ]

to add towards what towards. had spoken went just previously Was on speak one-off it that margins? on more it really Was of just on the quarter? a all it? you accumulation of to weighed that the you And sale sales can So

Michael Roper

Yes.

right. All Thanks, Aaron. Okay.

the in it's of it But and $X and Petel $X.X Benjamin second yes, was -- well. and margin. $X him as -- a or million over $X So million it's and have in And It's whatever, right, slim there. it $X revenue a million. costs. do you million phone, But yes, said to had turn of narrow million pieces on you couple I'll I really mentioned kind a

ultimately not of not we it's talk about want you be flat, to so Benjamin, But where whatever, just to this? or right, quite So to want clarify kind but that. it's still do

Benjamin Petel

talk Hello, Sure. Aaron. to to you Nice again.

right in a of is or trading think in in at there's looking that we're lot now think, strain world I general, I the general. environment volatility the in

I East a as the largest his different increase that in we to is to thing that said think the geographies. last down diversification piggybacking that tension plan important is showing before, in kind Michael -- here the those basically throughout of margins few to the said, that I of and think very this But of Middle Ukraine, of that of was slowing China, which in and for that chain different into verticals the supply there's kind also the everything different getting the been the of products factors main on -- of and the tension adding is, over they've the and and consumer of world signs quarter. course,

So alluded paths, to. also certain could certain and on commodities have also geographies the greatly which done structure Michael the be or as at lower certain the This financing, depends times. been down or trades of

be and put I definitely hard able products, geographies, why of think and of to combination supply chain, to to factors, these parts this it mitigate raise and margins. a So it's so is order the in new striving financing, be et cetera, but working in we're

Michael Roper

Aaron, got, what Awesome. else man? you Thanks, Benjamin.

Aaron Grey

Benjamin. there, appreciate I the color No. Michael,

the trade of when missed done have the me, just in in color was finalized? the terms Can XQ? days X commodity timing. speak on may And for transactions that about for timing financing. almost question any on color then quarter-to-date quarter just We're you Second with the so this, left. I the the

So just that trended terms quarter-to-date how versus sales and of margins, XQ? in might have

Michael Roper

Yes.

I'll the stuff. talk trade about financing So

to It's Yes, at continue -- things I so to leveraging been So at now let's call in leveraging grow, to as the way right change, have right, million the to are continuing right, we've we in we're been trade some have is moving we've it is guess, we different the there secured, it, in in expand already want far. you right, what's I the $XX on And regards of that. that guess, I'm think far. million to the That that several the finalized out trade, look keep that total $XX working always out. got so trade looking to we've that meaning probably finance continues finance, you forward, got Jennifer. we're word, deals, discussions

pretty just share got, actual the typical don't can whatever you numbers or have of more front in it's take we But you I quarter, I that But quarter can a me the details say we're without necessarily general. a numbers I else that stage, having that look this share have don't at far. you right? at in What so I here or When whatever I that are total in man? -- think think there. can it's

Aaron Grey

Okay. Great. right. All right. All

that's kind I [indiscernible] all I helpful. so then it of yes, just Benjamin So online bring guess here. think together

that a about to quarter. you're longer-term you more So of think normalized the get margins? sight, talking period line in in the you you How the environment favorable? do and growth, growth Do typical of line terms of enough are now XXXX terms about you balance in that, guys would helpful. be the that and you look How for longer-term are top outlook give be if there? on also So for profitable could the nimble is ability seeing are financing these so you markets of compressed get -- in we you of do we out a timing in -- think just but to have some kind as you more a being more of holistic way? overall trade to a Are

Michael Roper

Yes.

we've how do -- think through got think I go this. I I

or right? yes, We are have world. to we of the online. We Americas better the original the that right? do lot to looking it's at move as vanilla, we to typical say, So you in like When actually might a of interesting, now the it chunk we you we've way then to seasonality. well, access areas there's the MENA example, was between nimble, commodity world move as are a different peas the there, really things. kind different Brazil think an had to right? right? I especially not between be, in region, because cover markets, things, do the that's the biggest regions look start that have quarters moving ability into LatAm, that So We and have have and areas to there, move coming different right? of around types big are of with or a ability kind performing it's out the a right, So at obviously is of control whatever able those right, around and stuff the soy, of do are if We it let's of do certain have things

going things wanted tie of But downs jump You kind help I things to build And do together have Kevin, ups there. in. with finance, trade, this that's think, all between have are to and business, you these right? everything in and and

Kevin Mohan

of at the something more a off company, a we is to add started go bit you was kind look back of Yes. thing Aaron, think lot this right? little I continue company sort by I for saying, think offs Kevin. now to So trade and I that's back-to-backs. another I doing the critical traditional. it's to going of these is really of that's forward just No, that to lines, our history transitioning think And be if net that

that to that as So of sort and think hoping are we implement grow improve. are of the that that going strategy we things we definitely business, side I as

Michael Roper

about to lump lines. together that think a too, it, just supplier the that's Yes. of have we we areas. we trade talk kind but about kind And other financing of right? talk also thing -- people lot, X of Aaron, And not different But necessarily it's distinct when they are the stuff credit

lines well we different suppliers. so lot a of working the And are with on credit as

Benjamin Petel

opportunities size, the able flows and could use alluded to you a agile, and examining I usually the best we're the thing our just in which -- and I increase these think volumes that's there usually with are a as limited lot very term, equity margins that If we that cycles, ticket quite large return are nimble, on. large to kind used that Aaron, line typical not here in and and seize It's be in really, kinds are different for our we trades of geography, depend in on different And are but product, our I second. will so very different bringing of to are one very secure and will significant. group be different just with financing much things do also are to, are one Michael which very products, that more agile a summarize stages we are one strategy. think slowdown short potentially there word of here involved of geographies, to begin is which there is dealing with. But main that to one the and that there's see and into on us word commodity with make margins if

think is areas. the into diversification we that other definitely I and these forward So word, to diversifying Agile look and

Michael Roper

want go Okay. you to to the next? Alexa, do

Operator

Yes. Zacks Thank Tom you, Kerr to with Aaron. questions. move We'll for

Thomas Kerr

Can me? you hear

Michael Roper

fine. very Yes,

Thomas Kerr

Just one Most covered, a but questions of my been of couple second. have clarifications.

qualify Just multiple a -- trade is Just Is it it Is kind for Who Is is investors? trade private arranging what a And what it finance. going you a clarification bank? -- it? Or is financing? does what qualify how on it? the sources? of that? the who to do it

Jennifer Black

you on. take Benjamin? to ahead, I'll Do want those go

Benjamin Petel

No, no, please. Jennifer, please,

Jennifer Black

of are it's as trade them companies, either all are some not So them -- are all are some sources. of different these of these banks. -- it's [indiscernible], either some not -- bunch a of It's banks, not you them said,

in private. one Some on combination want kind to that It's of eggs like them are don't diversify to basket. because we mainly them And a don't rely put want of of we of diversify to this everything just source. all together, We one want put we your else. you

have different want so we sources -- did that? they're that. And Benjamin, to add on to you

Benjamin Petel

they're also it that time this depending world, Again, essence, in come where so or there basically line provide on finance. so you their it the it with on and -- in could different business. And institutional private is counterparts, banks and also have think the banking that In that said, very do terms negotiate where, family offices and funds of the or kind involved term, that line there's the or so on. suppliers I from or either way customers are them vast the trade business, with it. you there's are then providing And No, of provide. as pseudo on Jennifer the to in covers a trade oftentimes, finance you our

blend So our we're more for. fit looking looking moment of at the and of a those always to matrix and of find we what finance have some that within

Thomas Kerr

just the you of sources mentioned? And million the million number you $XX it. collective that's $XX those all referenced, Got to

Jennifer Black

correct. That's

Thomas Kerr

Okay. that of back about talked that that commodity you that's frame We or can to color guys or X% margins over And just other time that? we second. beat for to any a a it. margin, business aren't a I Got horse is the goal for there X% know in better. dead XXXX, providing on look or is but time X% XXXX goal perhaps, guidance, had

Kevin Mohan

I is this -- one Kevin. number Well, think,

what think getting creative I of we've in of, kind are a ways company think success I were think that. smaller had is one being I much type I lot margins are there historically than about. we where of number we've But think, the to talked a X that we that company higher one,

right? where have have of you in fluctuations you're higher-margin have deals you things a year try these you weather going you is opportunities, sometimes some as as et a and the So balance So on quarter it's the change, to goal to whether whole those the facilitate trade where business don't make to cetera. that whole then may goes market and fluctuations, may can lot, finance out

Benjamin Petel

And all we've hedge verticals, new I'm with date I'll say the add allow going of volatility if so into every that but of which think not I far market, the the to the I give just margins or against step entering here, won't the way. sell only things mentioned -- a that continue also but possible. us to not

into we're difference shipping today shipping conditions. already a able it's because not also shipping So if and make significant for into would if in and costs depending right commoditized, we're on if now, getting they shipping, and it's on to already forth, so so we had and example, just go down the also and a company, mitigate that up those are

diversify, picture we we'll So commodity rely would unreliable, form to and this the we of new and on. need see new do of, point so margins the of new to that's hopefully fortune to to and market I and geographies open we it's good need the and say, what we're Where prices to to. increase the want the to we not together products, on trying them will ourselves get that verticals all that

Thomas Kerr

question mean, helpful. I are where That's you we more last bids wait for guys corporate And Or we that me you to interest? Great. inning to business. there strong process? on at have color on be for do Can any in? is in of things solution, or looking are restaurant refranchised? mean, those all what give kind us are the you I open

Michael Roper

Yes.

-- me on. I'll with get you Let

jump me in Let there.

been them looking purposes, phase phases overall positions over convert First working and few positions on, should We X right? hire to but a complete. investigate complete, this, was there always and to That still right? was the for go And restaurants, is the to at take the out okay? whole do out corporate and restaurants right? And divest it there now been we go we're somebody locations, franchise them not, locations or structure -- pretty So right? have that the that it's that much graphical all

is who for So been long out there phase, Lisiten now are have moving been They've years. is actually the stuff, second we for we hired it hired chains, a selling -- we restaurant doing XX also today. doing have Associates, recently. expertise so about them this And where part right, time right? of into We're which their

is of to into already now We're So complete. the first the restaurants. divest these phase looking done second and phase

we From last, work time in frame as recently hired XX days, perspective things weeks, it, call whatever, on them, right, out. that the a so where it. timing We just X last

have an thing on it's now be it that I a to already in se, us, are time and working it of We able discussions important necessarily don't and all interest. there. we're started. for had creating We've people to general the against quickly. do line in per have But pretty other process than some already the showing We that have things room put some data

Kevin Mohan

and very knowledgeable specifically. to particular add I that, also they are sale, in would brands this specifically, I and something about intimately would that And Lisiten, say they Tom, business are specific the

we Northeast. They time. for are extremely brand the know them in they purchased So That well. Pokémoto from. up firm was known We've a actually long the the that

lot could that people know that disclose There so it. on bought I when was a And we that I of was there -- first bidding this. were

to interviewing with with that decision. Lisiten, we're sense other but made several very it so go after comfortable firms And

Michael Roper

Okay. All right.

there out that's else from basically have do analyst questions? that's we Alexa, anything think I it. an or perspective

Operator

Q&A That Mr. final our comments? is call. of Roper, that any portion believe this concludes I all.

Michael Roper

Yes.

we've everybody -- again lot we're always. want exciting. a farm stuff It's We're just that growing We've things pretty exciting. on don't changing of harvest thank which but was actually it. the started Zambia in if week, our to obviously had as this our pretty I Just President Zambia, and know There's well. farm are got business. this is activities with saw, work anybody I doing festival press in as we some the of some

of people getting So from well that are some high-profile type as visits there. out

to stuff come I So more appreciate very and it, everybody. soon. exciting

Sadot (SDOT) 21 Mar 242023 Q4 Earnings call transcript