HF Foods Reports Fourth Quarter and Full Year 2024 Financial Results

Core Insights - HF Foods Group Inc. reported a net revenue increase of 8.7% for Q4 2024 and 4.6% for the full year 2024, driven by volume growth and improved pricing strategies [5][11] - The company experienced a net loss of $43.9 million in Q4 2024, primarily due to a goodwill impairment charge of$46.3 million [8][9] - Adjusted EBITDA for Q4 2024 increased by 39.4% to $14.5 million, reflecting operational improvements despite the net loss [10][8] Financial Performance - Q4 2024 net revenue reached$305.3 million, up from $280.9 million in the prior year, marking an increase of$24.4 million [5][8] - Full year 2024 net revenue was $1,201.7 million, compared to$1,148.5 million in 2023, an increase of $53.2 million [11] - Gross profit for Q4 2024 was$52.2 million, slightly down from $52.3 million in the previous year, with a gross profit margin decrease to 17.1$7.0 million in Q4 2024, primarily due to higher professional fees and labor costs [7] - Cash provided by operating activities for the year ended December 31, 2024, was $22.6 million, a significant improvement from cash used in the prior year [16] Strategic Developments - HF Foods amended its Credit Agreement, increasing its revolver capacity by$25 million to $125 million, enhancing financial flexibility [17][18] - The company aims to leverage favorable market trends and demographics to capitalize on the growing demand for Asian food [18] Market Position - HF Foods is positioned as a leading distributor of food products to Asian restaurants across the U.S., with a strong network of distribution centers [21] - The company recognizes ongoing pressures in key customer segments but remains optimistic about long-term industry fundamentals [4]