Business
HF Foods Reports Second Quarter 2023 Financial Results
First Half Record Net Revenue Focus is to Reduce Cost Structure and Transform Operations LAS VEGAS, Aug. 09, 2023 (GLOBE NEWSWIRE) -- HF Foods Group Inc.
About this update from Hf Foods Group Inc.
[{"type":"text","content":"First Half Record Net Revenue Focus is to Reduce Cost Structure and Transform Operations LAS VEGAS, Aug. 09, 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 second quarter and six months ended June 30, 2023. Second Quarter 2023 Financial Results Net revenue decreased 2.4% to $292.3 million compared to $299.6 million in the prior year.Gross profit decreased 3.6% to $50.7 million, or 17.3% gross profit margin compared to $52.6 million, or 17.5% gross profit margin in the prior year.Net (loss) income decreased to a net loss of $1.6 million compared to net income of $4.5 million in the prior year.Adjusted EBITDA decreased 50.1% to $6.9 million compared to $13.9 million in the prior year. Six Months 2023 Financial Results Net revenue increased 1.4% to $586.2 million compared to $577.9 million in the prior year.Gross profit decreased 2.4% to $100.8 million, or 17.2% gross profit margin compared to $103.3 million, or 17.9% gross profit margin in the prior year.Net (loss) income decreased to a net loss of $7.4 million compared to net income of $7.6 million in the prior year.Adjusted EBITDA decreased 61.7% to $12.2 million compared to $31.8 million in the prior year. Management Commentary “As the only scaled, nationwide operator serving the Asian Foodservice market, we believe we have a strong value proposition for independent restaurant owners. Understanding their language and cultural background is important for creating a partnership with our customers, and we are uniquely differentiated because of the personalized experience we provide and the long-term relationships we develop with our customers,” said Peter Zhang, Chief Executive Officer of HF Foods. “Our team is focusing on reducing our cost structure and transforming our operations, and we believe the sizable legal and compliance fees that we have incurred for the past two years are largely behind us. These measures will have a significant impact as we work to drive profitability and growth as we continue on our mission of helping Asian restaurant owners in the U.S. achieve their business goals by offering the varied assortment of Asian specialty ingredients that our customers need.” Revenue by Product Category Three M...