Sadot Group Inc (SDOT) 2024 Q2 法說會逐字稿

Welcome to the Sadot Group Inc. Q2 2024 Earnings Conference Call. Today's call is being recorded. (Operator Instructions)

歡迎參加 Sadot Group Inc. 2024 年第二季財報電話會議。今天的通話正在錄音。（操作員說明）

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.

現在，為了進行開場白和介紹，我想將電話轉給 Sadot Group Inc. 投資者關係聯絡人 Frank Pogubila。

Before we get started, we would like to state that this call may include forward-looking statements pursuant to the safe harbor provisions of the US 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.

在開始之前，我們想聲明，根據 1995 年美國私人證券訴訟改革法案的安全港條款，本次電話會議可能包含前瞻性陳述。如果本次電話會議中提供的資訊討論了財務預測、有關業務計劃、營運結果、產品或市場的資訊或預期，或以其他方式對未來事件做出了陳述，則此類陳述可能具有前瞻性。此類前瞻性陳述可以透過使用「應該」、「可能」、「打算」、「預期」、「相信」、「估計」、「項目」、「預測」、「期望」、「計劃」和「建議”等詞語來辨識。

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. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading Risk Factors and Sadot Group Inc.'s most recently filed Form 10-Q 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.

儘管管理階層認為這些前瞻性陳述中反映的預期是基於合理的假設，但存在許多風險和不確定性，可能導致實際結果與此類前瞻性陳述有重大差異。我們敦促您仔細審查和考慮任何警告性聲明和其他披露，包括在風險因素標題下所做的聲明以及 Sadot Group Inc. 最近提交的表格 10-Q 以及 Sadot Group Inc. 不時提交的文件中的其他內容與SEC 聯繫的時間。前瞻性陳述僅代表截至其所包含文件之日的情況，Sadot Group Inc. 不承擔任何更新任何前瞻性陳述的義務，除非法律要求。

For this call, all numbers disclosed have been rounded to the closest $100,000, unless under $1 million, and percentages have been rounded to the closest percent unless otherwise noted. All numbers disclosed in this report are the amounts attributable to Sadot Group, Inc. and exclude the portion related to noncontrolling interests. On this call, we will refer to Sadot Group Inc., as Sadot Group, Sadot, or the company.

對於本次電話會議，除非另有說明，否則披露的所有數字均四捨五入至最接近的 100,000 美元，除非低於 100 萬美元，並且百分比均四捨五入至最接近的百分比。本報告中所揭露的所有數字均為 Sadot Group, Inc. 的金額，不包括與非控制權益相關的部分。在本次電話會議中，我們將 Sadot Group Inc. 稱為「Sadot 集團」、「Sadot」或「本公司」。

With me on the call today are Sadot Group's Chief Executive Officer, Michael Roper; and Chief Financial Officer, Jennifer Black. Michael and Jennifer will be presenting prepared remarks related to Sadot Group's financials filed on August 13, 2024, and those documents may be found on the company's website, Newswire feeds and on the SEC's website link from Sadot Group's website at www.sadotgroupinc.com under the Investor tab.

今天與我一起參加電話會議的是 Sadot Group 執行長 Michael Roper；和首席財務官珍妮佛·布萊克。Michael 和Jennifer 將發表與Sadot Group 於2024 年8 月13 日提交的財務資料相關的準備好的評論，這些文件可以在該公司網站、Newswire 以及來自Sadot Group 網站www.sadotgroupinc.com 的SEC 網站連結上找到。

At this point, I would like to turn it over to Sadot's CEO, Michael Roper. Michael?

現在，我想把它交給 Sadot 的執行長 Michael Roper。麥可？

Thanks, Frank. Good morning, everyone, and thank you for joining us today as we present the results of our second quarter. I'm extremely proud to announce that Sadot Group reported the best quarter and six-month year-to-date performance in our company's history, delivering significant positive net income and notable improvements in our financial position. This record-breaking performance underscores our resilience and commitment to operational excellence as we execute against our strategic vision.

謝謝，弗蘭克。大家早安，感謝您今天加入我們，我們將介紹第二季的業績。我非常自豪地宣布，Sadot Group 報告了我們公司歷史上迄今為止最好的季度和六個月業績，實現了顯著的正淨利潤，並顯著改善了我們的財務狀況。這項破紀錄的業績突顯了我們在執行策略願景時的韌性和對卓越營運的承諾。

Importantly, we consider ourselves to be in the early stages of our growth strategy as an emerging entity in the almost $2 trillion agri commodities market as we focus on driving change in the company's business model and transitioning the company into a larger player in the global agri commodities market, we believe we are starting to see these efforts reflected in our overall results.

重要的是，我們認為自己作為近2 兆美元農產品市場中的新興實體正處於成長策略的早期階段，因為我們專注於推動公司業務模式的變革，並將公司轉變為全球農業大宗商品的更大參與者。

For the second quarter, consolidated revenues increased 9% to $175 million, driven by Sadot Agri-Foods. Net income of $2.4 million exceeded the $190,000 we reported in Q2 2023. Additionally, our 2024 year-to-date cumulative net income is a positive $2 million compared to a net loss of $876,000 for the same period in 2023. Jennifer will discuss the financials in further detail shortly.

在 Sadot Agri-Foods 的推動下，第二季綜合營收成長了 9%，達到 1.75 億美元。淨利潤為 240 萬美元，超過了我們在 2023 年第二季報告的 19 萬美元。此外，我們 2024 年年初至今的累計淨利潤為正 200 萬美元，而 2023 年同期淨虧損為 876,000 美元。詹妮弗將很快進一步詳細討論財務狀況。

Overall, market conditions in the agri commodity sector started to improve in Q2 following a challenging Q1. Importantly, even though China demand remains a headwind as they focus on domestic production, the company was able to shift to other markets to drive growth, which helped drive the $76 million revenue increase from Q1. Combined with our corporate strategic growth initiatives and strong execution, this significantly contributed to our Q2 results.

總體而言，農產品產業的市場狀況在經歷了充滿挑戰的第一季後，在第二季開始改善。重要的是，儘管中國需求仍然是他們專注於國內生產的阻力，但該公司能夠轉向其他市場以推動成長，這有助於推動第一季營收成長 7,600 萬美元。結合我們的企業策略成長計畫和強大的執行力，這對我們第二季的業績做出了重大貢獻。

In addition to the growth potential within the global agri commodity market, we believe several powerful industry trends are converging to support Sadot Group's strategic initiatives and long-term success. First and foremost, the growing global demand for agricultural commodities is expected to be a crucial driver. Rising population, increased urbanization, and evolving dietary preferences are all contributing to heightened consumption of food and feed products worldwide. We believe this dynamic creates a favorable backdrop for companies like Sadot Group that are positioned to efficiently originate trade and distribute essential agri commodities.

除了全球農產品市場的成長潛力之外，我們相信幾個強大的行業趨勢正在融合，以支持 Sadot 集團的策略舉措和長期成功。首先也是最重要的是，全球對農產品的需求不斷增長預計將成為關鍵驅動力。人口增長、城市化進程加快以及飲食偏好的變化都導致全球食品和飼料產品的消費增加。我們相信，這種動態為 Sadot Group 這樣的公司創造了有利的背景，這些公司能夠有效地發起貿易和分銷基本農產品。

Secondly, the heightened emphasis on food security and sustainability represents a substantial opportunity for Sadot Group. Governments and international organizations are prioritizing initiatives to ensure stable food supplies and mitigate supply chain risks, areas where our vertically integrated business model, featuring both trading and farming operations, provides distinct advantages.

其次，對糧食安全和永續性的高度重視為薩多特集團帶來了巨大的機會。各國政府和國際組織正在優先採取措施，確保穩定的糧食供應並降低供應鏈風險，而我們以貿易和農業業務為特色的垂直一體化業務模式在這些領域具有明顯的優勢。

And finally, the ongoing consolidation and diversification trends within the agri commodity sector present exciting inorganic growth opportunities for Sadot Group. As industry players seek to expand their geographic reach, product offerings and value chain integration, we believe we are well-positioned to capitalize on strategic acquisitions and partnerships that can further strengthen our market position.

最後，農產品領域持續的整合和多元化趨勢為 Sadot 集團帶來了令人興奮的無機成長機會。隨著產業參與者尋求擴大其地理覆蓋範圍、產品供應和價值鏈整合，我們相信我們處於有利地位，可以利用策略性收購和合作夥伴關係，進一步鞏固我們的市場地位。

By proactively aligning our business model and growth initiatives with these powerful industry drivers, Sadot Group is poised to pursue its position as a leading global player in the dynamic and essential agri commodity market. To capture a greater share of this market opportunity, we are strategically expanding our operations into key supply chain verticals, including farming, origination and trading.

透過積極地將我們的業務模式和成長計畫與這些強大的行業驅動因素相結合，Sadot 集團準備在充滿活力的重要農產品市場中追求其作為全球領先參與者的地位。為了抓住這個市場機會的更大份額，我們正在策略性地將業務擴展到關鍵的供應鏈垂直領域，包括農業、原產地和貿易。

Longer term, we also see significant potential for expansion into other verticals such as shipping, logistics, processing and distribution. The formation of Sadot Brazil and more recently Sadot Canada, are a direct reflection of this strategy. Both of these new subsidiaries complement our existing operating centers in Miami, Singapore, Dubai and Kyiv.

從長遠來看，我們也看到了向航運、物流、加工和分銷等其他垂直領域擴張的巨大潛力。薩多巴西和最近薩多加拿大的成立，是這項策略的直接反映。這兩家新子公司補充了我們在邁阿密、新加坡、杜拜和基輔的現有營運中心。

We remain actively engaged in expanding our global platform and continue exploring further regional expansion opportunities. At the beginning of August, we announced the key leadership appointments for our newly formed Canadian operation. I'd like to take this opportunity to welcome both David Hanna as Executive Vice President, General Manager; and Jaime Rueda, as Vice President, Head of Feed Ingredients for Sadot Canada for the Sadot team. Their extensive experience -- I almost said expensive experience, but I guess that's accurate, too, very extensive experience and deep knowledge of the agri commodity markets make them invaluable additions to the company. Their combined leadership alongside the professional and dedicated management and team members in Miami, Brazil and Dubai will be instrumental in advancing Sadot's global growth agenda by working together to expand trade flows globally.

我們將繼續積極拓展我們的全球平台，並繼續探索進一步的區域擴張機會。八月初，我們宣布了新成立的加拿大業務的主要領導任命。我想藉此機會歡迎 David Hanna 擔任執行副總裁兼總經理； Jaime Rueda 擔任 Sadot 加拿大 Sadot 團隊副總裁兼飼料原料主管。他們豐富的經驗——我幾乎說的是昂貴的經驗，但我想這也是準確的，非常豐富的經驗和對農產品市場的深入了解使他們成為公司的寶貴補充。他們與邁阿密、巴西和杜拜專業、敬業的管理人員和團隊成員的共同領導，將透過共同努力擴大全球貿易流量，有助於推動薩多特的全球成長議程。

Next, let's discuss the farm operations. Our farm operations serve as an integral part of total food supply chain operation. Importantly, from an agri commodity trading perspective, the farm crop allows company to trade year round with the underlying commodity as collateral in case the market turns negative, helping to insulate us from market fluctuations. Increasing our farming capabilities in strategic locations worldwide will continue to be an important focus point for the company, allowing us to expand our trading, food security and community impact endeavors around these farms.

接下來，我們來討論一下農場的運作。我們的農場運作是整個食品供應鏈運作不可或缺的一部分。重要的是，從農產品交易的角度來看，農作物允許公司全年以基礎商品作為抵押品進行交易，以防市場轉為負面，從而幫助我們免受市場波動的影響。提高我們在全球戰略地點的農業能力將繼續成為公司的一個重要關注點，使我們能夠圍繞這些農場擴大我們的貿易、糧食安全和社區影響工作。

Regarding our legacy restaurant business, as we've been actively pursuing the divestiture of these noncore assets to focus on our agri commodity origination, training and shipping and farming. The company is engaged with numerous potential buyers resulting in the recently announced sales of Superfit Foods. This transaction is the first of three restaurant concepts to be sold from our portfolio and is the first step in our overall strategic plan to exit the restaurant business. We expect the divestiture of these noncore assets to drive operational savings and simplification. This will ensure resources are firmly aligned around the company's highest potential opportunities in the agri commodities market.

關於我們的傳統餐廳業務，我們一直在積極尋求剝離這些非核心資產，以專注於我們的農產品起源、培訓、運輸和農業。該公司與眾多潛在買家進行了接觸，最近宣布了 Superfit Foods 的銷售。這項交易是我們投資組合中出售的三個餐廳概念中的第一個，也是我們退出餐廳業務的整體策略計畫的第一步。我們預計這些非核心資產的剝離將推動營運節省和簡化。這將確保資源牢固地圍繞公司在農產品市場上的最高潛在機會進行調整。

Regarding Muscle Maker Grill restaurants, we have recently completed the process of converting corporate owned and operated Muscle Maker Grill locations to franchise locations. We believe this concept is now positioned to potentially attract a wider base of interested parties.

關於 Muscle Maker Grill 餐廳，我們最近完成了將公司擁有和經營的 Muscle Maker Grill 地點轉變為特許經營地點的過程。我們相信，這一概念現在有可能吸引更廣泛的利害關係人。

For Pokemoto, this likely will be the largest transaction of the three concepts that we're in negotiations and detailed discussions with several groups for the sale of our Pokemoto concept of which there is no guarantee. As the sale of each concept occurs, we expect to reduce G&A expenses, potentially enhancing the bottom line while simultaneously generating cash flow into the business.

對於 Pokemoto 來說，這可能是我們正在與幾個團體就出售 Pokemoto 概念進行談判和詳細討論的三個概念中最大的一筆交易，但我們無法保證這一交易。隨著每個概念的銷售，我們預計將減少一般管理費用，從而有可能提高利潤，同時為業務產生現金流。

Now I'd like to turn the call over to our CFO, Jennifer Black, to review more specifics of the financial performance of the company for the second quarter of 2024. Jennifer?

現在我想將電話轉給我們的財務長 Jennifer Black，以審查公司 2024 年第二季財務業績的更多細節。詹妮弗？

Thank you, Mike. Before I begin, please note that our financial results for the quarter ending June 30, 2024, on Form 10-Q were filed with the SEC yesterday, August 13, 2024, along with the press release on that same day.

謝謝你，麥克。在開始之前，請注意，我們已於昨天（2024 年 8 月 13 日）向 SEC 提交了截至 2024 年 6 月 30 日的季度財務業績（表格 10-Q）以及當天的新聞稿。

Our consolidated revenues increased 9% to $175 million in the second quarter of 2024 compared to $160.6 million for the same quarter in 2023. Our Sadot Agri-Foods segment accounted for the majority of our revenue, contributing $173.3 million in the second quarter as we completed 21 transactions across eight different countries. The farm completed its first full year of harvest. And in Q2, harvested over 2,500 metric tons of maize and 690 metric tons of soy. Our legacy restaurant operations, which are classified as held for sale, had $1.7 million of revenue in Q2.

2024 年第二季度，我們的合併收入成長 9%，達到 1.75 億美元，而 2023 年同一季度為 1.606 億美元。我們的 Sadot 農業食品部門占我們收入的大部分，在第二季度貢獻了 1.733 億美元，我們在 8 個不同國家完成了 21 筆交易。農場完成了第一個全年的收穫。第二季度，玉米收穫量超過 2,500 噸，大豆收穫量超過 690 噸。我們的傳統餐廳業務被歸類為持有待售類別，第二季的收入為 170 萬美元。

SG&A expense of $2.4 million for the quarter increased by over $500,000 versus a year ago, mainly due to the upfront costs associated with the opening and expansion of our Sadot Agri-Foods trading offices, which are integral to our growth strategy. Net income of $2.4 million was a notable improvement from the $190,000 for Q2 2023. EBITDA was $3.2 million compared to $656,000 in the second quarter of 2023.

本季的SG&A 費用為240 萬美元，與去年同期相比增加了50 萬美元以上，這主要是由於與我們的Sadot Agri-Foods 貿易辦事處的開設和擴張相關的前期成本，這是我們成長策略的組成部分。淨利潤為 240 萬美元，較 2023 年第二季的 19 萬美元顯著改善。EBITDA 為 320 萬美元，而 2023 年第二季為 656,000 美元。

Now looking at our balance sheet. The company had a cash balance of $10 million and a working capital surplus of $16.1 million, reflecting strengthened financial stability. This compares to a cash balance of $1.2 million and working capital surplus of $13.2 million as of March 31, 2024. It is important to note that as a part of our ongoing strategy, we continually invest our cash back into the Agri-Foods commodity trading business to increase our revenues or to add strategic assets.

現在來看看我們的資產負債表。該公司現金餘額為 1,000 萬美元，營運資金盈餘為 1,610 萬美元，反映出財務穩定性已加強。相較之下，截至 2024 年 3 月 31 日，現金餘額為 120 萬美元，營運資本盈餘為 1,320 萬美元。值得注意的是，作為我們持續策略的一部分，我們不斷將現金投資回農產品貿易業務，以增加我們的收入或增加策略資產。

The company is exposed to market risk primarily related to the volatility in the price of carbon offset units and food and feed commodities. To manage these risks, we entered into forward sales contracts and hedges from time to time. The forward sales contracts are initially measured at fair value, and any changes in fair value are recorded as gain or loss on the fair value remeasurement. The mark-to-market gain on these derivative transactions resulted in income of approximately $3.3 million for the quarter.

該公司面臨的市場風險主要與碳抵銷單位以及食品和飼料商品的價格波動有關。為了管理這些風險，我們不時簽訂遠期銷售合約和避險。遠期銷售合約初始以公允價值計量，公允價值的任何變動均計入公允價值重新計量時的利得或損失。這些衍生性商品交易的以市價計算的收益為本季帶來了約 330 萬美元的收入。

We are proud to report our best three- and six-month performance in the company's history. Significant positive change is occurring across our business, enabling us to deliver improved revenue streams and increased working capital surplus and higher cash balance. We are continuing to strengthen our balance sheet while also reducing expenses as we divested the restaurant concepts.

我們很自豪地報告公司歷史上最好的三個月和六個月的表現。我們的業務正在發生重大積極變化，使我們能夠改善收入來源、增加營運資本盈餘和更高的現金餘額。我們將繼續加強我們的資產負債表，同時透過剝離餐廳概念來減少開支。

With that, I'd like to return the call back over to Michael Roper.

說到這裡，我想將電話回撥給麥可羅珀。

Thanks for the financial overview, Jennifer. In closing, I want to thank all of our investors and stakeholders for your time and continued support of Sadot Group. We're extremely proud of the progress we've made in positioning the company for sustainable long-term growth, and we remain firmly committed to executing our strategic vision. As I've outlined today, we believe the combination of our growth potential in the vast global agri commodity market, our improved financial performance and strong balance sheet, our innovative risk management approach and our experienced leadership team provide us a compelling case for Sadot Group. Supported by powerful industry trends and tailwinds, we believe in our ability to continue driving value for our shareholders.

感謝您提供財務概覽，珍妮佛。最後，我要感謝所有投資者和利害關係人的寶貴時間以及對 Sadot Group 的持續支持。我們對公司在實現可持續長期成長方面取得的進展感到非常自豪，並且我們仍然堅定地致力於執行我們的策略願景。正如我今天所概述的，我們相信，我們在廣闊的全球農產品市場的成長潛力、我們改善的財務業績和強勁的資產負債表、我們創新的風險管理方法和我們經驗豐富的領導團隊的結合，為我們提供了一個令人信服的薩多集團案例。在強大的行業趨勢和順風的支持下，我們相信我們有能力繼續為股東創造價值。

Looking ahead, we'll maintain our disciplined focus on expanding our trading operations, diversifying our geographic footprint and further integrating our farm assets to create synergies across the supply chain. At the same time, we will judiciously manage costs and capital allocation to enhance profitability and returns. Thank you again for your time, and we look forward to updating you on our continued progress in the months and years ahead.

展望未來，我們將繼續嚴格專注於擴大我們的貿易業務、使我們的地理足跡多樣化並進一步整合我們的農場資產，以在整個供應鏈中創造協同效應。同時，我們將審慎地管理成本和資本配置，以提高獲利能力和回報。再次感謝您的寶貴時間，我們期待向您通報我們在未來幾個月和數年中持續取得的進展。

With that, please give us a few moments while we open up the lines for questions.

那麼，請給我們一些時間，讓我們開始提問。

Thank you, Michael. Before we get to questions from our selected analysts, I believe you have some questions to address, which you received from the stakeholders?

謝謝你，麥可。在我們回答我們選定的分析師的問題之前，我相信您有一些問題需要解決，這些問題是您從利害關係人那裡收到的？

Yes, I do, Alexa, thanks. Everyone, we normally get questions that get submitted to our IR e-mail address. We try to accumulate these and kind of come up with a common theme and address those questions before we open up to the analysts to make sure that we're addressing a lot of the common questions that are out there.

是的，我願意，Alexa，謝謝。大家，我們通常會收到提交到我們的 IR 電子郵件地址的問題。在我們向分析師開放之前，我們嘗試累積這些內容並提出一個共同的主題並解決這些問題，以確保我們正在解決許多常見問題。

So the first question -- we have four of them to go through. The first question I have is can you elaborate on the potential growth opportunities in the $1.9 trillion global agri commodity market? And what is Sadot Group's strategy to capture a larger share of this market?

第一個問題──我們有四個問題需要解決。我的第一個問題是，您能否詳細說明 1.9 兆美元的全球農產品市場的潛在成長機會？Sadot Group 採取什麼策略來佔領這個市場的更大份額？

So the global agri commodity market, it represents an opportunity for Sadot with an estimated annual value at nearly $2 trillion. It's a big market, right? Our strategy to capture a greater share of this market involves actively expanding our trading operations through strategic initiatives, such as the formation of Sadot Brazil and Sadot Canada that we recently announced. These new entities complement our existing trading hubs and they allow us to facilitate trade flows to and from key regions such as North America, Africa, Black Sea, Indonesia, et cetera.

因此，全球農產品市場對薩多來說是一個機會，估計每年價值近2兆美元。這是一個很大的市場，對嗎？我們佔領該市場更大份額的策略包括透過策略性舉措積極擴大我們的貿易業務，例如我們最近宣布成立 Sadot Brazil 和 Sadot Canada。這些新實體補充了我們現有的貿易中心，使我們能夠促進北美、非洲、黑海、印尼等關鍵地區的貿易流動。

By diversifying our geographic presence and expanding our trading capabilities, we aim to position Sadot as a larger player in the global agri commodities market. Now one of the things I want to kind of talk to is that's kind of the horizontal expansion, right? And we also plan on expanding vertically into additional aspects of the global agri commodity supply chain. And we actually see the industry that's divided into like three segments or three components.

透過多元化我們的地理分佈和擴大我們的貿易能力，我們的目標是將 Sadot 定位為全球農產品市場的更大參與者。現在我想談的一件事是橫向擴展，對吧？我們還計劃垂直擴展到全球農產品供應鏈的其他方面。我們實際上看到這個行業分為三個部分或三個組成部分。

Number one is the upstream segment. That kind of represents the origins of the product kind of like farming, that's in emerging markets. The second segment is really classified as midstream. I know I'm being very technical here, midstream, which is really trading logistics and infrastructure. And then there's like downstream, right, which is processing capacity in the ingredients and feed industries through different geographies, okay, where we can contribute value. So those are like the three areas.

第一是上游部分。這代表了新興市場產品的起源，就像農業一樣。第二段實際上被歸類為中游。我知道我在這裡的技術性很強，中游，這實際上是貿易物流和基礎設施。然後還有下游，對吧，這是不同地區的原料和飼料行業的加工能力，好吧，我們可以在那裡貢獻價值。這些就像三個領域。

Now we're currently operating in the upstream and midstream segments of the market, so there's ample room to expand there within those segments, right? But as we evolve and grow, our goal is to continue capturing additional capabilities that's going to allow us to expand vertically and fully integrate our operations overall.

現在我們在市場的上游和中游領域開展業務，因此這些領域還有足夠的擴展空間，對嗎？但隨著我們的發展和成長，我們的目標是繼續獲得額外的能力，這將使我們能夠垂直擴展並全面整合我們的整體營運。

So Jennifer, you want to take the next one?

詹妮弗，你想拿下一張嗎？

Sure. The next question we have is, when will Brazil and Canada contribute to the top line revenue?

當然。我們的下一個問題是，巴西和加拿大何時會對營收做出貢獻？

And with that, Brazil is a crucial geography for any company involved in Agri-Foods supply chain. Our expansion into Brazil through the formation of Sadot Brazil has been a key strategic priority over the past year. The team is building important foundations to support our strategy and goals in this region. Since we reported our first Brazil trade in July, the team had been involved in several other transactions surrounding sesame and are heavily involved with our new Canadian subsidiary as well as other regions lining up future trades.

因此，對於任何參與農業食品供應鏈的公司來說，巴西都是至關重要的地理位置。我們透過成立 Sadot Brazil 向巴西擴張是過去一年的關鍵策略重點。該團隊正在建立重要的基礎來支持我們在該地區的策略和目標。自從我們七月報告第一筆巴西貿易以來，該團隊已經參與了圍繞芝麻的其他幾筆交易，並積極參與了我們新的加拿大子公司以及未來交易的其他地區。

Building these foundations require deep understanding and connection with the professionals on the ground. The Sadot Brazil office is establishing relationships with local producers, intermediaries and end users to grow the company's presence in Brazil, and in the future, allow us to leverage our global distribution network and risk management expertise.

建立這些基礎需要與當地專業人士的深入理解和聯繫。Sadot 巴西辦事處正在與當地生產商、中間商和最終用戶建立關係，以擴大公司在巴西的業務，並在未來使我們能夠利用我們的全球分銷網絡和風險管理專業知識。

Sadot Canada is our most recent addition to our global trading team, led by David Hanna and Jaime Rueda. The team in Canada is currently focused on the Canadian pulses market, building out its origination capabilities, securing financing facilities and finalizing strategic partnerships to ensure a smooth market entry. The Sadot Canada team is in the process of introducing the new entity to the local market, farmers, exporters, global trading counterparties. Although we cannot provide a specific guarantee, we anticipate that Sadot Canada will begin executing trades in Q4. It's important to note that Sadot Canada model will focus on smaller container-sized trades, and these types of trades are usually more frequent and have higher margins.

Sadot Canada 是我們全球貿易團隊的最新成員，由 David Hanna 和 Jaime Rueda 領導。加拿大團隊目前專注於加拿大豆類市場，建立其原創能力，確保融資設施並最終確定策略合作夥伴關係，以確保順利進入市場。Sadot 加拿大團隊正在向當地市場、農民、出口商、全球貿易對手介紹新實體。儘管我們無法提供具體保證，但我們預計 Sadot Canada 將在第四季開始執行交易。值得注意的是，薩多加拿大模式將專注於較小貨櫃尺寸的貿易，而這些類型的貿易通常更頻繁且利潤率更高。

And the next question we have is what does July revenue look like? And are you anticipating revenues to remain in the $175 million to $200 million range for Q3?

我們的下一個問題是 7 月的收入怎麼樣？您預計第三季的營收將維持在 1.75 億美元至 2 億美元的範圍內嗎？

I'm pleased to report that our July 2024 revenue came in at approximately $61 million, continuing the positive momentum we saw in Q2 and an increase of roughly 15% from July 2023. Our team remains focused on executing our strategic growth initiatives, prudently managing our risk and driving increased value for our shareholders.

我很高興地報告，我們 2024 年 7 月的收入約為 6,100 萬美元，延續了我們在第二季度看到的積極勢頭，較 2023 年 7 月增長了約 15%。我們的團隊仍然專注於執行我們的策略成長計劃，審慎管理我們的風險並為股東增加價值。

Mike, do you want to go to the next one?

麥克，你想跳到下一首嗎？

Yes. I got another question here. Hold on a second, to be sure I got the right one. So the last question we have here before going on live to the analysts is can I provide more details on the divestiture of the restaurant assets? What is the anticipated timeline and expected impact on the company's financials?

是的。我這裡還有一個問題。請稍等一下，確保我找對了。因此，在向分析師現場提問之前，我們的最後一個問題是我能否提供更多有關餐廳資產剝離的細節？預期的時間表以及對公司財務的預期影響是什麼？

So as you guys know, we are actively pursuing the divestiture of our noncore restaurant assets, which is a key part to our strategic plan that allows us to focus on the agri commodity business, right? And that's our core business. We want to focus on that instead of worrying about the restaurants. We've already completed the sale of Superfit Foods meal prep service, which we announced a few weeks ago.

正如你們所知，我們正在積極尋求剝離非核心餐廳資產，這是我們策略計畫的關鍵部分，使我們能夠專注於農產品業務，對嗎？這就是我們的核心業務。我們希望專注於這一點，而不是擔心餐廳。我們已經完成了 Superfit Foods 膳食準備服務的銷售，這是我們幾週前宣布的。

And we are in the early stages of due diligence for the remaining concepts of Muscle Maker Grill restaurants and Pokemoto. I think I mentioned earlier, we've actually got several groups that we're talking to regarding Muscle Maker and Pokemoto in different stages of those discussions. As we complete the sale of each restaurant concept, we do expect to see a reduction in our G&A expenses, which should enhance our bottom line performance.

我們正處於對 Muscle Maker Grill 餐廳和 Pokemoto 剩餘概念進行盡職調查的早期階段。我想我之前提到過，我們實際上已經有幾個小組在討論的不同階段就 Muscle Maker 和 Pokemoto 進行了討論。當我們完成每個餐廳概念的銷售時，我們確實希望看到我們的一般管理費用減少，這應該會提高我們的底線績效。

Additionally, the divestitures will generate cash flow that we can reinvest into Sadot Agri-Foods operations that will support our growth initiatives. While specific timeline for the remaining divestitures are still being finalized, we are working diligently to complete these transactions and further streamline our business model.

此外，剝離將產生現金流，我們可以將其再投資到 Sadot Agri-Foods 業務，以支持我們的成長計劃。雖然剩餘資產剝離的具體時間表仍在敲定中，但我們正在努力完成這些交易並進一步簡化我們的業務模式。

Let me highlight here quick the recent Superfit Foods transaction, along with the sale of the final company-owned Muscle Maker Grill restaurant where we converted into a franchise location and the closing of an underperforming location, kind of lumping all those together, and these transactions all occurred in early Q3 of 2024 here.

讓我在這裡快速強調一下最近的Superfit Foods 交易，以及最後一家公司擁有的Muscle Maker Grill 餐廳的出售（我們將其轉變為特許經營店）以及關閉了一家表現不佳的餐廳，這些交易將所有這些都集中在一起，以及這些交易一切都發生在 2024 年第三季初。

With these recent moves, we believe our expenses will reduce by an estimated $400,000 plus per year on an annualized basis as we eliminate the overhead associated with operating these locations. And importantly, the current and future cash proceeds of roughly about $400,000 as well from these transactions will be reinvested back into the business. So we believe Superfit Foods represents the smallest transaction of the three concepts with Pokemoto likely to be the largest.

透過最近的這些舉措，我們相信，隨著我們消除與營運這些地點相關的間接費用，我們的年化開支預計將減少 40 萬美元以上。重要的是，這些交易目前和未來約 40 萬美元的現金收益將重新投資回業務。因此，我們認為 Superfit Foods 是這三個概念中最小的交易，而 Pokemoto 可能是最大的交易。

And like I said earlier, we are in detailed discussions with multiple groups for both Muscle Maker Grill and Pokemoto. And we view the successful completion of Superfit Foods sales as an important milestone in the strategic transformation into a more streamlined and higher-margin agri commodity company, right? Again, we want to get rid of the restaurants and take that money and redeploy it towards the Sadot Agri business.

正如我之前所說，我們正在與多個小組就 Muscle Maker Grill 和 Pokemoto 進行詳細討論。我們認為 Superfit Foods 銷售的成功完成是策略轉型為更精簡、利潤率更高的農產品公司的一個重要里程碑，對吧？再次，我們希望擺脫餐館，並將這筆錢重新部署到薩多特農業業務上。

So with that, I think that answers all the questions that we kind of summarized here. So Alexa, do you want to take it over to the analysts on the line?

因此，我認為這回答了我們在這裡總結的所有問題。Alexa，你想把它交給線路上的分析師嗎？

Aaron Grey, AGP.

亞倫·格雷，AGP。

Nice improvement in the quarter here. So first one for me, just in terms of the Agri-Foods business, commodity business, I know there can be some volatility there, some nice pickup there sequentially in the quarter. So wanted to get a better line of sight in terms of whether or not you're seeing more line of sight yourselves in terms of the trajectory of where sales can go. Do you believe there will still be some more volatility? I know you're getting more diversified entering new markets. So just some more color in terms of where you think the top line within that business can go from here?

本季取得了不錯的進步。所以對我來說，第一個，就農業食品業務、大宗商品業務而言，我知道那裡可能會出現一些波動，但本季會出現一些不錯的回升。因此，想要獲得更好的視野，看看您自己是否能在銷售軌跡方面看到更多的視野。您認為還會出現更多波動嗎？我知道你們在進入新市場時變得更加多元化。那麼，您認為該業務的營收將如何發展？

Okay. Thanks, Aaron. So a couple of things, and then I'll let Jennifer jump in here as well, but I think to start off. As Jennifer mentioned, we saw July come in at a little over $61 million for the month. So that's a good start to the quarter. So we're continuing to see that -- build that momentum after the poor performance in Q1, right, which was attributed to the China market more than anything. So China has become more stabilized. They are still focusing on their domestic production, but us, as a company, have been pretty resilient to be able to move a lot of the trades and business to other parts of the world.

好的。謝謝，亞倫。有幾件事，然後我也會讓珍妮佛也加入進來，但我想先開始吧。正如 Jennifer 所提到的，我們看到 7 月當月的收入略高於 6,100 萬美元。所以這是本季的良好開端。因此，我們將繼續看到——在第一季表現不佳之後，要建立這種勢頭，對吧，這主要歸因於中國市場。所以中國變得更加穩定。他們仍然專注於國內生產，但我們作為一家公司，具有相當的彈性，能夠將大量貿易和業務轉移到世界其他地區。

And I think that's really key about the future of where we see kind of some of the revenues going is as we continue to grow by adding Sadot Brazil and then adding Canada here recently and obviously, hopefully, some more as we move forward. That just gives us more diversification and allows us to move around so we can try to stabilize some of the fluctuations that you talked to and some of the variations that might happen that's out there. And I think we kind of proved that in Q2 and now beginning at Q3 as well. So from a stability standpoint, I think that bodes kind of well for us as we move forward.

我認為這對未來非常關鍵，我們看到一些收入的去向是隨著我們透過增加薩多特巴西和最近增加加拿大來繼續成長，顯然，希望隨著我們的前進，我們會增加更多收入。這只會讓我們更加多元化，並允許我們四處走動，這樣我們就可以嘗試穩定您談到的一些波動以及可能發生的一些變化。我認為我們在第二季證明了這一點，現在也從第三季開始。因此，從穩定性的角度來看，我認為這對我們前進來說是個好兆頭。

But like you mentioned, there's always fluctuations that are out there. But I think we are nimble enough and have a wide enough footprint now or whatever to really start to be able to manage around some of those things.

但就像你提到的，總是存在著波動。但我認為我們現在足夠靈活，並且擁有足夠廣泛的足跡，或者其他真正開始能夠管理其中一些事情的能力。

Okay. I appreciate that color, Michael. And the second one for me. On the gross margin, nice improvement there as well. So on a similar level, are you already seeing some of the benefit of the trade financing that help with the gross margin? Or was that more so just the trades that were made during the quarter that really led to the improvement? So similar question I would ask before, but on the gross margin here in terms of how we should think about the margin profile for the different trades you're making, either via products or geographies over the next couple of quarters?

好的。我很欣賞這種顏色，麥可。第二個對我來說。在毛利率方面，也有不錯的改善。那麼在類似的水平上，您是否已經看到貿易融資有助於提高毛利率的一些好處？或者說，更多的是本季進行的交易真正帶來了改善？我之前會問類似的問題，但就毛利率而言，我們應該如何考慮您正在進行的不同交易的利潤狀況，無論是透過產品還是透過未來幾季的地理位置？

Thanks, Aaron. On this one, it really was the trades that we did this quarter that generated those margins. We haven't really been able to dive deep into the trade finance part yet. And so this has all been done organically. When it comes to kind of how we're going to manage it in the future, that's the whole reason we are diversifying. We're looking at different segments, like we said, with the opening of Brazil and Canada.

謝謝，亞倫。在這方面，確實是我們本季進行的交易產生了這些利潤。我們還沒有真正深入研究貿易融資部分。所以這一切都是有機地完成的。當談到我們未來將如何管理它時，這就是我們多元化的全部原因。正如我們所說，隨著巴西和加拿大的開放，我們正在關注不同的細分市場。

And with those -- entering those new markets, we're entering new areas. Like we said, with Brazil, we did the -- just went blank, sesame, sorry -- sesame, and then when we go into Canada, we're doing the pulses, which are the smaller containers. And like I said earlier, those smaller containers tend to generate higher gross margins. And when you have more options, that let us shift the money or shift the resources on to where you're seeing that could help generate that better margins.

隨著這些——進入這些新市場，我們正在進入新的領域。就像我們說的，在巴西，我們做了——只是空白，芝麻，抱歉——芝麻，然後當我們進入加拿大時，我們正在做豆類，它們是較小的容器。正如我之前所說，那些較小的容器往往會產生更高的毛利率。當您有更多選擇時，我們就可以將資金或資源轉移到您認為有助於產生更好利潤的地方。

And I think that just to reiterate, I think part of the key there as we move forward, as Jennifer mentioned, is the Canadian business model, as we bring that one online, that one really is more oriented towards container-sized orders versus entire cargo ship orders. And so there's a lot more frequency and a lot more transactions that happen through that. But those do tend to be higher-margin items in general than the containerships as well. So as we intermix that in there, that should help address some of the margin fluctuations that we see with some of the larger containerships and then obviously going into different products as well. Like she mentioned, we've gone into sesame now, right? So different products, different times a year, et cetera, have different margins that are in there. So having a wider option base that's out there for us bodes well.

我想重申一下，正如珍妮佛所提到的，我認為我們前進的關鍵部分是加拿大的商業模式，當我們將這種模式帶到網路上時，這種模式確實更傾向於貨櫃大小的訂單，而不是整個訂單。因此，透過這種方式發生的頻率和交易量都會更高。但總體而言，這些項目往往比貨櫃船利潤率更高。因此，當我們將其混合在一起時，這應該有助於解決我們在一些較大的貨櫃船上看到的一些利潤波動，然後顯然也進入不同的產品。就像她提到的，我們現在已經進入芝麻了，對吧？因此，不同的產品、一年中的不同時間等等，都有不同的利潤。因此，擁有更廣泛的選擇基礎對我們來說是個好兆頭。

And in addition too, with their always being volatility, we do hedge to mitigate our risk, which, as always, it does kind of lower some of that, but it also is more secure and safer to hedge those risks.

此外，由於它們總是具有波動性，我們會進行對沖來減輕我們的風險，一如既往，這確實會降低一些風險，但對沖這些風險也更安全。

Tom Kerr, Zacks.

湯姆·科爾、札克斯。

Just a question on the operating cash flow, which was really strong, I think, over $8 million in the quarter. What were the working capital components that drive that? And does that -- do they cycle back and forth where we may not see strong operating cash flow in the second half of the year? And the right color and how that works?

只是關於營運現金流的問題，我認為該季度營運現金流非常強勁，超過 800 萬美元。推動這目標的營運資金組成是什麼？他們是否會在下半年我們可能看不到強勁營運現金流的情況下來回循環？正確的顏色以及它是如何工作的？

No, absolutely. And all of these are going to come down to timing, Tom, when payments are received and when they're redeployed. Our strategy has been and will continue to be to reinvest our cash into the company, to put that cash to work and generate margin. We don't want to sit on a bunch of cash. I know a lot of people like that, especially analysts, like us to have cash on the books, but we want to use that cash and generate additional margin. And so this quarter, yes, we'd have a high cash balance, and that was due to timing of the receipt of payments. And we're deploying those back out and trying to earn money and earn revenue on that cash.

不，絕對是。湯姆，所有這些都取決於時間，即何時收到付款以及何時重新部署。我們的策略一直並將繼續是將我們的現金再投資到公司，使這些現金發揮作用並產生利潤。我們不想坐擁大量現金。我知道很多人都喜歡這樣，尤其是分析師，他們喜歡我們帳上有現金，但我們希望利用這些現金並產生額外的利潤。所以這個季度，是的，我們有很高的現金餘額，這是由於收到付款的時間造成的。我們正在部署這些資金，並試圖利用這些現金賺錢並賺取收入。

Okay. That makes sense. And going back to the commodity gross margins, I think it was 1.1%, and you kind of discussed this a little bit, but that's not where we want to be, right? And maybe can you publicly talk about long-term goals for gross margin?

好的。這是有道理的。回到商品毛利率，我認為是 1.1%，您對此進行了一些討論，但這不是我們想要的，對吧？也許您可以公開談論毛利率的長期目標嗎？

Yes, I'm not sure. I mean, look, every month is a higher gross margin, right? There's no question about that and we've talked in the past and continue to look as we move forward in ways to increase the overall profitability of the company, even beyond just trades, right? So everybody keeps focusing on trades. But as we continue to move into the farming aspect and some of the other aspects that are there, and if we get into shipping or any other areas, those will help drive some of the margin numbers.

是的，我不確定。我的意思是，看，每個月的毛利率都比較高，對嗎？毫無疑問，我們過去已經討論過，並且在我們前進的過程中繼續尋找提高公司整體盈利能力的方法，甚至不僅僅是交易，對吧？所以大家都把注意力集中在交易上。但隨著我們繼續進入農業方面和其他一些方面，如果我們進入航運或任何其他領域，這些將有助於提高一些利潤率。

As we mentioned about Canada, those smaller trades tend to drive larger margins as well. So as they come online, that should help push that. But reality is, it's -- in this industry, it just kind of depends on seasonality. It depends on the products you have and the deals you make or whatever that are out there is kind of happening in the market.

正如我們在加拿大提到的那樣，這些較小的交易往往也會帶來較大的利潤。因此，當他們上線時，這應該有助於推動這一進程。但現實是，在這個行業，它只是取決於季節性。這取決於您擁有的產品和您所做的交易或市場上發生的任何事情。

So yes, we'd like to see higher margins. We had some higher margins in the past. We've had lower margins in the past, right? So I do think in that 1% to 3% range or whatever is where we want to be, where we can achieve. That's out there again. It just kind of depends on the timing of the year and the different products that are happening in the marketplace. I know that doesn't give a distinct answer, that's probably about as good as I can get.

所以，是的，我們希望看到更高的利潤。過去我們的利潤率較高。我們過去的利潤率較低，對嗎？所以我確實認為在 1% 到 3% 的範圍內或任何我們想要達到的目標、我們可以實現的目標。那又出現了。這只是取決於一年中的時間和市場上出現的不同產品。我知道這並沒有給出明確的答案，這可能是我能得到的最好的答案。

That's helpful.

這很有幫助。

In addition to that, once we get all these trade finance lines kicked in and going and optimize, it will provide better return on equity.

除此之外，一旦我們啟動所有這些貿易融資業務並進行最佳化，它將提供更好的股本回報率。

Yes. And two more quick ones for me. Back to the trade financing. You put a number on it last quarter. I think you add up to $26 million availability. Does that continue to increase or change? Or --

是的。還有兩個給我的快點。回到貿易融資。上個季度你寫了一個數字。我認為您的可用性總計可達 2600 萬美元。這種情況會繼續增加或改變嗎？或者--

It's still basically at that same point. We are working though we're getting closer on multiple other trade finance options that could be significantly larger if they come through. So we continue to work on that. I think what's really more important is part of it is we've been able to deliver what we delivered with the trade finance lines that we do have, right? And so -- and bringing some of those more online, if you want to say, as we move forward, we just bode well for the future on it. But we have been able to accomplish what we have so far just with what we have today.

基本上還是在同一點上。我們正在努力，儘管我們正在接近多種其他貿易融資方案，如果它們成功的話，規模可能會大得多。所以我們會繼續努力。我認為真正更重要的是我們已經能夠透過我們現有的貿易融資額度來交付我們所交付的產品，對吧？因此，如果你想說，隨著我們的前進，將其中一些更多地帶到網上，這對未來來說是個好兆頭。但我們已經能夠憑藉今天所擁有的一切來完成我們迄今為止所擁有的一切。

And there's other options out there that we are utilizing that are not just trade finance line, and then we're looking into like supplier credits, insurances and other options that allow you to tap in there without actually having trade finance.

我們正在利用的不僅僅是貿易融資額度，還有其他選項，然後我們正在研究供應商信貸、保險和其他選項，這些選項可讓您在沒有實際貿易融資的情況下利用這些選項。

Got it. Okay. Last one for me is, did I hear you say Superfit proceeds were $400,000?

知道了。好的。最後一個問題是，我聽到你說 Superfit 的收益是 40 萬美元嗎？

No. So it was a combination between Superfit and converting the one Muscle Maker -- the last Muscle Maker Grill location over to a franchise location. So the total proceeds of those two were kind of in that $400,000 range. So again, nothing material coming out of those, but it's the first step in really truly divesting these things and moving forward.

不。因此，這是 Superfit 與將一家 Muscle Maker（最後一家 Muscle Maker Grill 店）轉變為特許經營店之間的結合。所以這兩個人的總收益大概在 40 萬美元左右。再說一次，這些並沒有產生任何實質的結果，但這是真正剝離這些東西並繼續前進的第一步。

The Muscle Maker Grill restaurants will be larger, it should be anyway than Superfit Foods. And obviously, the big one that we're working on is Pokemoto. That's the larger of the three concepts that are going out there. Those are both still being worked on right now.

Muscle Maker Grill 餐廳會更大，無論如何應該比 Superfit Foods 更大。顯然，我們正在開發的最重要的一個項目是《Pokemoto》。這是正在出現的三個概念中較大的一個。這些目前仍在研究中。

And just to kind of add on to that, with those sales, we did not take a loss on those.

除此之外，透過這些銷售，我們並沒有遭受損失。

On those two items. Okay. Got it.

就這兩項而言。好的。知道了。

Yes.

是的。

If there aren't any more questions, that concludes our Q&A portion of the call. Mr. Roper, any final comments?

如果沒有其他問題，我們的電話問答部分就結束了。羅珀先生，最後有什麼意見嗎？

I just want to thank everybody for being shareholders and going through us in this adventure that we have as we grow this company. A lot of good things in the future that are coming up. And as I think you've seen, a lot of good things that have happened here in the recent past as well that continues to propel us and become a larger player in the industry. But again, just thanks to everybody for their patience and I appreciate all the questions and cooperation and comments and suggestions and everything that everybody makes, whatever that's out there. So doing our best and moving forward.

我只想感謝大家作為股東，並在我們發展公司的過程中經歷我們的冒險。未來有很多美好的事情即將發生。正如我想您已經看到的，最近這裡發生了很多好事，這些好事繼續推動我們成為行業中更大的參與者。但再次感謝大家的耐心，我感謝所有的問題、合作、評論和建議以及每個人所做的一切，無論是什麼。因此，盡我們所能並繼續前進。