HF Foods Group Reports 2024 Financial Results

Hf Foods Group ( (HFFG) ) has released its Q4 earnings. Here is a breakdown of the information Hf Foods Group presented to its investors.

HF Foods Group Inc., a prominent food distributor to Asian restaurants across the United States, has released its financial results for the fourth quarter and full year of 2024, highlighting its role in the Asian foodservice sector. The company reported an 8.7% increase in net revenue for the fourth quarter and a 4.6% increase for the full year, driven by volume growth from new wholesale accounts and improved pricing. However, the company faced a net loss of $43.9 million for the quarter and $48.1 million for the year, primarily due to a significant goodwill impairment charge of $46.3 million.

Despite the challenges, HF Foods saw a 39.4% increase in adjusted EBITDA for the fourth quarter and a 21.6% increase for the full year, reflecting improved operational efficiency. The company also reported a substantial increase in cash flow from operating activities, totaling $22.6 million for the year, compared to a cash outflow in the previous year. This improvement was attributed to better working capital management.

In response to industry headwinds and policy changes, HF Foods is actively diversifying its revenue streams by expanding into high-growth channels such as specialty grocery and e-commerce. The company has also amended its credit agreement, increasing its revolver capacity by $25 million to support strategic growth initiatives.

Looking ahead, HF Foods remains focused on leveraging its flexible business model and extensive supplier relationships to adapt to market changes. The company is optimistic about the long-term fundamentals of the Asian foodservice sector and is strategically positioned to drive sustained value for its shareholders.