Hf Foods Group Inc. · NASDAQ:HFFG
Hf Foods — 2024 ICR Conference
24 slides from Hf Foods's conference presentation, January 2024
Slide 1: HF Foods Group Inc. Investor Presentation
HF FOODS GROUP INC. January 2024 (NASDAQ: HFFG) Investor Presentation STRICTLY PRIVATE AND CONFIDENTIAL
Slide 2: Disclaimer
CONFIDENTIAL DISCLAIMER Forward-Looking Statements All statements in this Presentation other than statements of historical facts are forward-looking statements which contain HF Foods Group’s (the “Company”) current expectations about our future results. The Company has attempted to identify any forw
Slide 3: 25+ years of helping local and regional Asian business owners fulfill their American dream
CONFIDENTIAL 25+ years of helping local and regional Asian business owners fulfill their American dream… 3
Slide 4: Partnering with domestic and international suppliers to bring varied assortment of Asian ingredients
CONFIDENTIAL …while partnering with domestic and international suppliers to bring the most varied assortment of Asian ingredients our clients need 4
Slide 5: Who we are
CONFIDENTIAL Who we are
Slide 6: HF Foods' solid foundation fortified with people, acquisitions, and operational focus
CONFIDENTIAL HF Foods’ solid foundation has been fortified with people, acquisitions, HF Foods and an operational focus… B&R Global Post-merger East and West coast consolidators merged to form a leading national player in Asian foodservice distribution Carlos Rodriguez Felix Lin appointed Acquired a
Slide 7: Led by a management team with decades of industry experience
CONFIDENTIAL … and is led by a management team with decades of industry experience Peter Zhang Carlos Rodriguez Felix Lin Christine Chang Russell Libby Chief Executive Officer Chief Financial Officer Chief Operating Officer General Counsel & Chief Chairman of the Compliance Officer Board of Director
Slide 8: HF Foods is a leading food distributor for the Asian restaurant market in the U.S.
CONFIDENTIAL HF Foods is a leading food distributor for the Asian restaurant market in the U.S. HF Foods strategically leverages its platform to win Deep, long-term relationships with diversified customer and supplier base Proven pricing power in an inflationary environment attributable to a uni
Slide 9: A wide variety of Asian restaurants rely on HF Foods to create their cuisine
CONFIDENTIAL A wide variety of Asian restaurants rely on HF Foods to create their cuisine Singapore Chow Mi Fun General Tso Chicken House Lo Mein Yellow Baby Corn Soy Sauce Asian Soy Sauce Oyster Curry Rice Sauce Chicken Oyster Dried Chili Seasoning Sauce Pepper Specialty Specialty Rice Oyster Asian
Slide 10: Unmatched ability to service the large and growing Asian restaurant market
CONFIDENTIAL Unmatched ability to service the large and growing Asian restaurant market… HF FOODS IS A CRITICAL PROVIDER TO THE ASIAN RESTAURANT MARKET... ... AND ITS POSITION IS DIFFICULT TO REPLICATE One-stop shop for Asian-centric cuisines There are ~94K Asian restaurants in the U.S.1, and HF Foo
Slide 11: Customer-focused and integrated value proposition
CONFIDENTIAL …with a customer-focused and integrated value proposition National Small/Local Large, national Fragmented, Why HF Foods wins public companies regional players Customer focus drives high-quality service Customer stickiness Distribution centers are their own engine – providing t
Slide 12: How we are built
CONFIDENTIAL How we are built
Slide 13: Extensive reach and distribution capabilities with strong regional operating brands
CONFIDENTIAL HF Foods has extensive reach and distribution capabilities with strong regional operating brands driving success Key metrics Northwest 45+ ~95% 18 B&L Midwest Northeast U.S. States Of the contiguous Distribution centers B&L covered U.S. covered and cross docks Brands in each region driv
Slide 14: Integrated sales and distribution network supports customer relationships and stickiness
CONFIDENTIAL Integrated sales and distribution network supports robust customer relationships and stickiness Multilingual call center representatives trained by HF Foods Call center fosters efficient service Restaurants Suppliers Supports cultural connectivity with customers Deliver variety of p
Slide 15: Long-standing sourcing partners are key to operations
CONFIDENTIAL HF’s closely developed and long-standing sourcing partners are key to its operations Ability to source from a deep list of ~30% international suppliers and Ability to source a broad product offering, allowing HF Foods to become the ~70% domestic suppliers one-stop shop for clients
Slide 16: Transformation Plan
CONFIDENTIAL Transformation Plan
Slide 17: Ongoing operational transformation
CONFIDENTIAL Ongoing operational transformation Centralized Purchasing Fleet and Transportation Digital Transformation Facility Upgrades Centralized purchase order Establishing national fleet Continued build out of Ongoing network and facility management and global maintenance program recent
Slide 18: Growth opportunities
CONFIDENTIAL Growth opportunities
Slide 19: Tangible growth opportunities supported by unique go-to-market strategy
CONFIDENTIAL HF has tangible growth opportunities, supported by unique go-to-market strategy and capabilities Key avenues for outsized growth Continued expansion in existing core markets EXPANSION IN Optimize product mix to capitalize on key secular growth trends within the Asian foodservice mar
Slide 20: Clear line of sight into new locations with repeatable expansion plan
CONFIDENTIAL 1 Clear line of sight into new locations with repeatable expansion plan Potential new customers (e.g., Asian restaurants) Key expansion opportunities Meaningful whitespace opportunity across the United States, both within existing markets and in new, untapped markets Existing custom
Slide 21: Clearly defined margin expansion strategy
CONFIDENTIAL 2 Clearly defined margin expansion strategy Initiated operational transformation plan to improve margins through achieving growth and cost savings Significant Operational Initiatives Operational Initiative Description Centralized purchase order management and strategic sourcing Consol
Slide 22: Opportunity to cross-sell products across business units
CONFIDENTIAL 3 Opportunity to cross-sell products across business units Cross-sell products across full HF Foods customer base Significant cross-sell opportunity, especially in seafood Expand newly established seafood offerings from Great Wall and Sealand through other DCs Robust geographic cr
Slide 23: Proven M&A Playbook
CONFIDENTIAL 4 Proven M&A Playbook HF Foods’ thoughtful acquisition strategies identify M&A opportunities with significant and attainable synergies Acquisition strategy What this means Why this matters Management aims to Expanding presence in select regions will allow HF Foods to Geographic penetr
Slide 24: One of the only scaled, nationwide operators serving the Asian foodservice market
CONFIDENTIAL CONFIDENTIAL HF Foods is one of the only scaled, nationwide operators serving the Asian Foodservice market STRONG VALUE PROPOSITION AS A POSITIONING AND SCALE IN A NICHE SECTOR LEADER IN ASIAN FOOD DISTRIBUTION DIFFICULT TO REPLICATE 1 National reach with a regional feel gives HF Foods