Business
HF Foods Reports First Quarter 2021 Financial Results
HF Foods Returns to Profitability with Net Income Attributable to the Company of $1.5 Million and a 104% Increase in Adjusted EBITDA to $8.9 Million CITY OF
About this update from Hf Foods Group Inc.
[{"type":"text","content":"HF Foods Returns to Profitability with Net Income Attributable to the Company of $1.5 Million and a 104% Increase in Adjusted EBITDA to $8.9 Million\nCITY OF INDUSTRY, Calif., May 10, 2021 (GLOBE NEWSWIRE) -- HF Foods Group Inc. (NASDAQ: HFFG), a leading food distributor to Asian restaurants across the Southeast, Pacific and Mountain West regions of the United States, reported strong financial results for the first quarter ended March 31, 2021, highlighted by a return to profitability one year after the outbreak of the COVID-19 pandemic in the U.S. First Quarter 2021 Financial Summary Net revenue was $159.4 million, compared to $175.8 million in the first quarter of 2020.Gross profit increased to $29.4 million, or 18.5% of total revenue, from $29.0 million, or 16.5% of total revenue in the first quarter of 2020.Net income attributable to the Company was $1.5 million, or $0.03 per diluted share, compared to net loss of $339.9 million, or $(6.52) per diluted share, in the first quarter of 2020.Adjusted EBITDA increased 104% to $8.9 million from $4.3 million in the first quarter of 2020. Management Commentary“One year after the COVID-19 pandemic completely upended the daily operations of the food service industry, we find ourselves sustainably operating with a robust core customer base and well positioned to return to our growth path thanks to the decisive actions we took last year and improving market conditions,” said Peter Zhang, CEO of HF Foods. “With sales volumes recovering month-to-month and at approximately 90% of pre-COVID-19 levels in March of 2021, we increased our gross profit to $29.4 million, generated positive net income of $1.5 million, and increased adjusted EBITDA 104% year-over-year, as well as 48% sequentially from the fourth quarter of 2020, to $8.9 million. These improvements are particularly encouraging considering that the pandemic had only materially impacted the very last month of the first quarter of last year. “Within our primary markets, a return to normalcy appears to be on the horizon for our customers and their clientele. Our improving financial position coupled with our unique competitive advantages, including our extensive footprint, strong vendor and customer relationships, value-added service offerings, and position as a market leader in a fragmented Asian foodservice industry, give us confidence...