HF Foods Group Inc. Reports $1.202 Billion Revenue and $48.5 Million Net Loss for Fiscal Year 2024

HF Foods Group Inc. reported a net revenue of $1.202 billion for the fiscal year ending December 31, 2024, marking a 4.6% increase from $1.148 billion in 2023. This growth was primarily driven by volume increases from new wholesale accounts, case count growth, and product cost inflation, although it was partially offset by a $13.3 million revenue loss due to the exit from chicken processing operations in the latter half of 2023. The company's gross profit rose slightly to $205.2 million, up from $204.0 million in the previous year, but the gross profit margin decreased to 17.1% from 17.8% due to rising costs.

The company experienced a significant net loss of $48.5 million in 2024, compared to a loss of $2.2 million in 2023. This substantial increase in loss was primarily attributed to a goodwill impairment charge of $46.3 million recorded during the year. Distribution, selling, and administrative expenses increased by 1.5% to $198.0 million, driven by higher payroll and insurance costs, although these expenses as a percentage of net revenue decreased to 16.5% from 17.0% in 2023.

HF Foods has continued to expand its operational footprint, now operating 16 distribution centers and three cross-docks across 46 states, covering approximately 95% of the contiguous United States. The company serves around 15,000 customer locations, primarily Asian restaurants, and employs over 1,000 staff. The company’s strategic focus on Asian specialty products has positioned it as a leading distributor in this niche market, differentiating it from larger competitors.

In terms of strategic developments, HF Foods underwent a leadership transition with the termination of CEO Xiao Mou Zhang on October 24, 2024, and the appointment of Xi (Felix) Lin as interim CEO, later confirmed as the permanent CEO effective January 1, 2025. The company also amended its credit facility in February 2025, increasing its revolving commitment from $100 million to $125 million, which will support its ongoing operational and expansion needs.

Looking ahead, HF Foods aims to consolidate its market leadership through further acquisitions and geographic expansion, while also investing in technology to enhance operational efficiency. However, the company faces challenges, including a highly competitive market and the need to address material weaknesses in its internal controls over financial reporting, as identified in its recent filings. The management is actively working on remediation strategies to strengthen its internal control environment and improve financial reporting reliability.