Company: HFFG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001628280-25-039583
Chunk: 96

Company: HF Foods Group Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 8
Chunk 96
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.0 %Cost of revenue82.7 %82.8 %Gross profit17.3 %17.2 %Distribution, selling and administrative expenses16.4 %16.8 %Income from operations0.9 %0.4 %Interest expense0.9 %1.0 %Other expense (income), net(0.1)%0.6 %Change in fair value of interest rate swap contracts0.3 %(0.4)%Lease guarantee income— %(0.9)%Income (loss) before income taxes(0.2)%0.1 %Income tax expense (benefit)(0.1)%0.2 %Net loss and comprehensive loss(0.1)%(0.1)%Less: net income (loss) attributable to noncontrolling interests(0.1)%0.1 %Net loss and comprehensive loss attributable to HF Foods Group Inc.— %(0.2)%

25

Net Revenue

Net revenue for the six months ended June 30, 2025 increased by $15.3 million, or 2.6%, compared to the same period in 2024. This increase was primarily attributable to volume growth and improved pricing in Commodity, Meat & Poultry and Seafood, partially offset by decrease in volume within other categories.

Gross Profit

Gross profit was $106.1 million for the six months ended June 30, 2025 compared to $102.9 million in the same period in 2024, an increase of $3.2 million, or 3.1%. The gross profit increase was primarily attributable to increased net revenue partially offset by increased costs. Gross profit margin for the six months ended June 30, 2025 slightly increased to 17.3% compared to 17.2% in the same period in 2024. 

Distribution, Selling and Administrative Expenses

Distribution, selling and administrative expenses of $100.8 million for the six months ended June 30, 2025 slightly increased compared to prior year expenses of $100.3 million primarily due to an increase in payroll and related labor costs, partially offset by a decrease in professional fees. Distribution, selling and administrative expenses as a percentage of net revenue decreased to 16.4% for the six months ended June 30, 2025 from 16.8% in the same period in 2024, primarily due to lower professional fees