Business
HF Foods Reports First Quarter 2023 Financial Results
First Quarter Net Revenue up 6% to $293.9 Million Plan in Place to Reduce Cost Structure and Continue Focus on Improving Operations LAS VEGAS, May 10, 2023
About this update from Hf Foods Group Inc.
[{"type":"text","content":"First Quarter Net Revenue up 6% to $293.9 Million Plan in Place to Reduce Cost Structure and Continue Focus on Improving Operations LAS VEGAS, May 10, 2023 (GLOBE NEWSWIRE) -- HF Foods Group Inc. (NASDAQ: HFFG), a leading food distributor to Asian restaurants across the United States (“HF Foods”, “HF Group” or the “Company”), reported financial results for the first quarter ended March 31, 2023. First Quarter 2023 Financial Results Net revenue increased 6% to $293.9 million compared to $278.2 million in the prior year.Gross profit decreased 1% to $50.2 million, or 17.1% gross profit margin compared to $50.7 million, or 18.2% gross profit margin in the prior year.Net (loss) income decreased 285% to a net loss of $5.8 million compared to net income of $3.1 million in the prior year.Adjusted EBITDA decreased 71% to $5.3 million compared to $17.9 million in the prior year. Management Commentary “While I am pleased with our sales increase in the first quarter, it was a challenging quarter for costs,” said Peter Zhang, Chief Executive Officer of HF Foods. “Distribution, selling, and administrative costs grew, while gross profit declined slightly. First quarter margins were incrementally impacted as higher priced inventory was sold at lower competitive prices as product cost inflation began to subside. We expect this impact to diminish as the Company consumes and replaces higher cost commodity inventories. We have developed a plan to reduce our cost structure to address these issues in the near term, while continuing to focus on improving operations, supply chain and distribution channels, and driving efficiencies across the Company,” continued Mr. Zhang. “HF Foods liquidity position remains strong, with operating cash flows, cash on hand and availability under our line of credit,” said Carlos Rodriguez, Chief Financial Officer of HF Foods. “In addition, we are now fully compliant with NASDAQ financial statement filing requirements, and when we hold our combined 2022 and 2023 annual meeting next month, we will have resolved all outstanding issues with NASDAQ. The resolution of these legacy issues has also enabled the Company to reduce related professional fees and expenses,” said Mr. Rodriguez. First Quarter 2023 Results Net revenue was $293.9 million for the first quarter of 2023 compared to $278.2 million in the prior year, an increa...